FERTILISERS SUBSIDY CONTINUED, BUT PRICES WILL BE INCREASED

Wanganui Chronicle, 5 July 1950, Page 6

FERTILISERS SUBSIDY CONTINUED, BUT PRICES WILL BE INCREASED

PARLIAMENT BLDGS., Last Night (PA).—The Minister of Agriculture, Mr. Holyoake, said today that decisions had now been reached after discussions with the producer boards and with Federated Farmers on lime transport assistance, the subsidy on imported phosphatic fertilisers (basic slag, guano and finely-ground North African phosphate) and the price of superphosphate. The period over which lime transport assistance would be paid had been extended to July 31, 1952. Rates remain unchanged for the year ending July 31, 1951, and will again be subject to review next year.

The subsidy of imported phosphatic fertilisers will be continued for a further twelve months on all shipments en route by April 30. 1951. This year, however, rates will be £2 per ton and there will be no minimum selling price. The Minister said that to encourage the local manufacture of slag by the fusion process, it had been agreed to subsidise fused slag by £2 nor ton. The cost of these subsidies will be carried 85 per cent, by the producer pools and 15 per cent, by the Consolidated Fund. Mr. Holyoake said some producer representatives favoured the removal of superphosphate from price control, but as this opinion was not unanimous the Director-General of Agriculture was instructed to negotiate exworks prices with the manufacturers. The proposed prices were then submitted for consideration by the Stabilisation and Price Tribunal. Examination of last year’s manufacturing accounts indicated that the cost structure on which the superphosphate price ruling during the last twelve months was determined did not fully cover the expenses of labour and materials used in repairs and maintenance full depreciation. Some saving had been effected by the British Phosphate Commissioners in the C.I.F. price of raw rock, but increases in the cost of other raw materials, sacks and internal services had necessitated higher prices. Cabinet had approved recommendations entailing a price of £8 per ton ex South Island works and £7 19s per ton ex North Island works from July 1, 1951, until further notice. Prices of fertilisers using supernhosnhate as a base would also be increased-, and these costs would be notihed to distributors at an early date, ,said the Minister.