FARM SUBSIDIES

Waikato Independent, Volume XLIV, Issue 6093, 25 August 1947, Page 2

FARM SUBSIDIES

STATEMENT by minister of FINANCE POSITION CLARIFIED In a recent Press statement concerning the withdrawal of subsidies the Minister of Finance was quoted, inter alia, as follows: — “Farm subsidies, with minor exceptions, would be cancelled from agreed dates, and compensatory adjustments would be made in the price paid for the products concerned. The changes in farm stabilisation procedure had beeti discussed with representatives of the major primary producers’ organisations, with whom the final details would be arranged.” The general manager of the New Zealand Meat Producers’ Board in response to many enquiries from producers who desire to have the position clarified advises that the proposals envisage increases in the prices to be paid for fat stock during the 1947/48 season, commencing Ist October next. Such increases or compensatory adjustments, mean that instead of meat producers continuing to defray the cost of holding down the price of fertilisers, etc., used by them by payment out of .their Meat Industry Stabilization Account, they will receive from that Account a commensurate increase in fat stock prices. The effect of this adjustment is that meat producers will in the future have to pay directly instead of indirectly the full prices for the materials involved. Not a Subsidy

The word “subsidy” is a misnomer when used in connection with the holding down of the cost of fertilisers, etc., as far as meat producers are concerned, for instead of the expense being borne by the Consolidated Fund or the general community it is" paid for out of the funds owned by the producers in their own Meat Industry Stabilization Account.

Before finalising the range of increases in fat stock prices, the Meat Board would await the forthcomirig wage pronouncement, the effect of which must result in still > further increases in farm and processing costs for which producers will be entitled to reimbursement in the shape of additional prices for stock. This statement is issued to acquaint the owners of store stock with the future outlook in order that they may take steps to protect their position.