BUTTER AND CHEESE ON LOCAL MARKETS

Chronicle (Levin), 20 June 1946, Page 3

BUTTER AND CHEESE ON LOCAL MARKETS

The question us to wlxetlier the cost of keeping down the price of butter und clxeese on Ihe local xuarket should be a chargo agaiust the Dairy Industry Stabilisatioxx Account or against the community as a wliole xvas recently lieard by a conxmissiou of inquiry, stated tlie annual report of the Xational Dairy Assoeiation. This was the oue point on wliich agreement could not be rcackcd when the joiut coiunxittee of the Dairy and Meat Boards met the Ecouomic Stabilisation (Jommittee, to decide what costs were riglitfully cliargeable against the stabilisation accounts. The Govemnxent ciaimed that under the agreement with the Farmers ' Federation it xv as entitled to debit the Dairy Stabilisation Account with the local subsidies, but the representatives of the industry could not agree, so the point was referred to arbitration. The comniission's iinding, xvhich had not yet been announced, was auxiously awaited by the industry. The amount involved

over the stabilisation period was estimated to excecd £3,000,000. Subsidies to Farmers. "It is to be lioped that the joint statement issued by the Dairy and Meat Boards will assist to dispel the view niistakenly held by a large section of the community that primary producers are k.eavily subsidised by the Governmeut in their ^'armin'g opcrations, " added the report. lluge suxns runniug into many niillions were frequently mentioned in expansive xuomeixts from political plalforms, but rarely was it thought necessary, by the speakers to add that these "sulxsidies" are not paid out of the public purse but by the producers tlieniselves out of the pVoceeds of the sale of their produce. The report explained that during the war two cuurses were open to the producers — they could have iusisted on liiglier prices eaeh year, in whicli case wages and other costs would have risen accordiugly. The other course was to agree 'to a stabilisation of their returns with corresponding stabilisation of costs of production. This they accepted as beiug in the best interests of the comniunity. This meant that they did not receive the full prices realiscd for their produce, and the •surpluscs' thus accumulated were credited by agreement to the various stabilisation accounts. "The cost of 'subsidies' on fertiliser and other commodities, farm and factorv cost allowances, '.subsidies' on stock feeds, 'subsidy' for growing crops for pig feed to save importation of grain, and many -otliers are paid out of these accounts, and not oue penny comes out of the Consolidated Fund, War Expenses Account, or auy other public source," said the report. '