SWITCH OVER TO CHEESE

Timaru Herald, Volume CXLX, Issue 22028, 30 July 1941, Page 7

SWITCH OVER TO CHEESE

Cost Is Approximately £1,000,000 Britain May Pay Higher Price (P.A.) WELLINGTON, July 29. The price paid to the British Government to New Zealand and Australia for cheese manufactured in those countries was raised in the House today In an urgent question by Mr C. A. Wilkinson (Independent, Egmont) to the Minister of Marketing, the Hon. J. G. Barclay.

Mr Wilkinson asked if the New Zealand Government was aware that a statement had been made bv a member of the Australian Dairy Board to the effect that he could advise the industry that it was confidently anticipated that the British Government would grant an increase in the price of cheese to Australia of 5/9 per cwt. Mr Wilkinson also asked, in the event of the extra price being paid to New Zealand, how the Government proposed to deal with it in the way of distribution to farmers.

The Minister, in reply, said no official announcement had yet been made by the Australian Government in the matter. The negotiations between Britain and New Zealand were not yet completed, but if such an increase was given to Australia the New Zealand Government was confident that a similar Increase would be given to New Zealand. The Minister said that any such Increase would be granted by the Ministry of Food solely as a recognition for the increased uantities of cheese. New Zealand's liabilities in this direction to date were approximately £1,000,090 and covered the following items: — Grant to Individual suppliers making the change-over from butter to cheese, £80,000: cost of purchase of whey butter which could be sold to Britain, £450,000: subsidy for cheese, crates, £30,000; provision of plant and equipment for cheese factories £200,000, and compensation to butter and cheese factories for Increased costs due to the change-over, £125,000. The Minister added that If an extra 5/9 per cwt. was paid by Britain it would barely cover the liabilities he had indicated. As soon as the negotiations were completed a public announcement would be made, and if any incerase was given it would be considered in relation to the whole question of the change-over from butter to cheese and the additional costs In this connection.