DROUGHT RELIEF

Bay of Plenty Beacon, Volume 9, Issue 70, 6 May 1946, Page 5

DROUGHT RELIEF

LOSS ESTIMATED AT 20 PER CENT. COMPENSATION FROM GOVERNMENT The question of compensation from the Government to meet the heavy losses sustained by the drought victims in the North Auckland, South Auckland, Bay of Plenty and Poverty Bay areas, was discussed at the conference of the East Coast Ward of the N.Z. Dairy Board last Wednesday when it was decided to support the Northland Dairy Association in requesting the Dairy Board to present to the Government a claim based on the estimated loss assessed against average production over the previous four years for the months of January, February and March.

Mr Murdoch said that the drought drop in March which was considered the worst month had been estimated as follows: North Auckland, 68.6 per cent; South Auckland, 56.4 per cent and Bay of Plenty 48.3 per cent. In Australia where quite a lot of drought relief had been paid out by the Government, the money had come from the Consolidated Fund. A Farmer’s Independence

Mr Richardson (Opouriao) said that while he did not favour the habit of getting the Government to subsidise the farmer’s misfortunes, in this case he understood that many in the North had been practically ruined. Therefore he supported the suggestion of compensation. As a farmer he had always tried to stand on his own feet, taking the good with the bad. When a farmer had a good season he did not think of paying any money over to ( the Government, but when he was badly hit he expected the rest of the community to come and help him. He had selected an occupation which was largely a gamble and he should sustain his losses. However he had revised his views a little and earnestly suggested that an insurance scheme be instituted into which all farmers paid and upon which all could operate when the need arose.' Mr Murdoch agreed that the insurance idea was an excellent one which would be investigated. Should Help Themselves

Mr Yeoman said he did not agree to the suggestion that the relief monies should all come from the Consolidated Fund. Portion at least should come from the Dairy Industry Account as a gesture to the Government that the farmers were prepared to help their less fortunate colleagues. Mr Murdoch replied that if any money were taken from the industry account the South Island farmers who had not experienced the drought were adament on their decision that a flat-rate payment should be made to all producers in the Dominion.

Basis of Claims

The meeting finally agreed to adopt the suggestions from North Auckland as they stood, the terms of which were as under:—

1. That the claim for compensation be confined to dairy companies in the drought-affected areas, and that no support be given to any suggestion that the compensation should be in the form of a flat-rate payment over all the butterfat in the Dominion.

2. That the -average of the four years prior to the present dairy season be used as a basis for corhputing the loss.

3. That an interim claim be submitted to the Government at the earliest possible date through the Dairy Board and the Dairy Industry Council for the months of January, February and March, 1946, leaving the balance of the season for a consideration later.

4. That no request be made to the Government for any share of the compensation to be taken from the Dairy Industry' Stabilisation Account.

5. That dairy companies agree to suppliers carrying the first ten per cent, of the loss as a normal hazard of the dairy farmers’ calling. 6. That a joint conference of representatives of dairy companies in the drought-affected areas be convened to formulate a claim, and to appoint representatives to place same before the Government through the Board and Dairy Industry Council.