FERTILISER SUBSIDY

Wanganui Chronicle, Volume 77, Issue 155, 3 July 1934, Page 8

FERTILISER SUBSIDY

STATEMENT BY MINISTER USE OF BOARD OF TRADE ACT. I Per Frees T WELLINGTON, July 2. Interviewed to-day regarding the fertiliser subsidies, the Minister ot Agriculture said that the position a.\ stated in the Press Association message from Auckland was correct, except the last sentence. Cabinet’s decision was conveyed by telegram to each manufacturer on 30th ultimo and was as follows: “Am directed to advise you that Cabinet’s decision regarding fertilizer subsidy is that it bo 2s 6d per ton, conditional on the selling price not exceeding £4 per ton, this to date from July 1. ” Cabinet doos not agree with the manufacturers that it is “impossible for them to carry any additional burden,” said Hon. C. E. Macmillan. “As a result of very careful investigation of the manufacturers’ costs, the following conclusions were arrived at: There are four manufacturing companies, two owning one works each, one owning two, and one owning four works. The total capital invested in all the works is £1,208,919. On sales equivalent to last season’s, with 2s fid per ton subsidy, and the price and conditions the same, after allowing 6s 6d per ton commission on all sales in the North Island and 9s on all sales in the South Island, and adequate depreciation, the nett profit available for distribution is £98,195, equal to an 8 1-8 per cent, dividend upon all capital invested in fertiliser works. This should be considered sufficient profit. Owing to various works not having the same proportion of sales to invested capital, of course the dividend each company can pay is different. In view of this, if the fertiliser companies charge £4 3s 6d without the subsidy, steps will have to be taken under the Board of Trade Act to compel the price to be reduced to £4 per ton, with 2s 6d per ton subsidy. ’ ’ PRICE ADVANCED AUCKLAND ANNOUNCEMENT. [ Per Association. ] AUCKLAND, July 2. Increased prices for superphosphate came into operation in Auckland today. In announcing the revised rates, the North Island (N.Z.) Fertiliser Manufacturers’ Association issued the following memorandum: “The manufacturers regret to announce that the negotiations with the Government with regard to the renewal of the subsidy have been unsuccessful. In these circumstances an advance in price is unavoidable. The subsidy paid by the Government un til June 30 was at the rate of 5s a ton, but as the cost of raw materials has fallen, representing a reduction in the price of superphosphate of Is fid a ton, the manufacturers have decided that the price for superphosphate will be advanced only by 3s fid a ion.” A SIDNEY BOLT TOD MORGAN K-O.'s KELSO. Received July 2, .11-55 p.m. SYDNEY, July 2. At the Stadium to-night, Tod Morgan (10.0) knocked out Jimmy Kelso (9.11) in the eighth round.