ASSURANCE TO DAIRYFARMERS

Press, Volume C, Issue 29505, 5 May 1961, Page 14

ASSURANCE TO DAIRYFARMERS

Government’s View Of Importance

(N.Z. Press Association) GREYMOUTH, May 4. The importance of the dairy industry to New Zealand was emphasised by the Minister of Finance (Mr Lake) today, when asked to comment on the statement of the chairman of the dairy section of Federated Farmers (Mr R. Woolerton) that New Zealand’s dairy industry was running into a debt at the rate of £160,000 a week. The rate of loss, according to Mr Woolerton was £8 million a year. He claimed the industry was going into “glorious liquidation.” Mr Woolerton could see no relief coming from action being taken on the dumping issue. The Government regarded the prosperous existence of the dairy industry of paramount importance to the economy of the country, said Mr Lake. Finance which was made available to the dairying industry had in the past come from the Reserve Bank, but it was with the object of avoiding the use of Reserve Bank credit that the Government recently transferred £3 million to the industry. The Minister described money voted to the dairy industry as being on a temporary basis, as it was intended to pay the money back to the Government The Minister said he understood that the industry was insistent that it should stand on its own feet, and would return the finance obtained from the Government.