Details of New Agreement With Britain Announced

Chronicle (Levin), 30 July 1946, Page 7

Details of New Agreement With Britain Announced

i — Press Association

By Telegrapl

WELLINGTON, July 29. ''The price to be paid by the United Kingdom l'or New Zealand butter l'or the 1946-47 season is 175s a cwt. eonipared with 150s 6d a cwt. for the past two seasons and there is the equivalent increase in the price for cheese," said the JMinister of Finance, Hon. W. Nasli, in a broadcast tonight. "For meats other than pigmeats it has been agreed that priees will be 71 per cent. above those ruling during the past two seasons or 43 1-3 per cent. above prices fixed | in the first bulk pureliase contract. The new priees agreed upon for pigmeats are llj per cent. above those for the past two seasons or 48 1-3 per cent. above tlie prices fixed in the first bulk pureliase j contract."

I Undor contracts made in 1944, said tlie Miuister, the United Ivingdoui M uiistry of Food agreed to buy Kew Zealajid 's exportaiile surplus of dairy produce and ineat for a period of t'our years and during liis reeent visit to London, the al>ove prieps for the 194(5 47 season wero diseussed with the i United Kingdom .M inisters and otlicials who further agreed that tlie period ot the contracts would be exteuded to 197)0, the prices to be paid to be agreed ; upon annually. ; "This two years' extension of conJ tracts will give added security to our ; farmers and give them an asSured basis for expanding their production to the utmost for tlie benefit of the people oi , the "United Kingdom," said Mr. Nash. I "It has also been agreed that m 194b a conference will be held to consider i the desiraoility of extending the agreement to cover the production of butter and cheese up to July 31, 1952." The Miuister said Kew Zealand 's desire to resume tlie marketing of her butter under her own brauds, was strongly represeuted to the United Kingdom authorities who agreed to meet Kew Zealand 's wislies earlv in 1947. Kew Zealand 's right to sell butter and cheese in markets other than United Kingdom, in accordance with an allocation progrannne, was agreed to • but the whole question would be re 1 viewed in a year's timo. The United Kingdom Govei'iiment further undertook to give Kew Zealand reasonable notice when it was proiiosed to discontihue rationing margarine ajid would diseuss with Kew Zealand its ' ell'ects on the marketing of butter. ' ' In terms of the agreement entered into in July, 1944, by the United Kingdom and New Zealand Governments, liunp simi payments of £4,000,000 annually are being made by the United Kingdom toward meeting the cost oi , economic stabilisation in New Zealand," said Mr. Nash. "These pay- | ments will continue for a stipulated j period imtil July 31, 1948. ' ' Mr. Nash said he appreciated the as- ! sistance given during the negotialious ! by Mr. W. F. Ilale, chairman of the ! Kew Zealand Dairy Board and Mr. G. ' II. Grigg, chairmau of the Meat Producers Board. Prices as finally detef i niined were reached in agreement with them, and he understood tliey wero act1 ing in accordauce with recommendations fro.n their respective noards. The prices agreed upon wero in line with those to be paid for Australinn produce, continued the Miuister. Uowever, the United Kingdom Government stated it could not avoid looking "to other countries for the balance of their requirements which Australia and Kew > Zealand could not meet, and in sucli

cases might have no optiou but to pay iiigher prices. The Kew Zealand Government 's objective in these negotiations had been to secure permanent markets for the Dominion's products at prices Avhich would give a fair return to the pro ducers. "In accordance with the existing agreements with the farnx industries, uhe increase in prices as received in New Zealand will be credited to the Uairy and Meat Stabilisation Accounts, where they will be held for the henefit of the producers," said the Minister. "As in past seasons, the amounts to be paid out to the farmers will be governed by the costs of productiozi. " Other products upon which diseussions took place were wool, wliicli had already been the subject of an officiab -tatement, and hides, pelts, apples, taliow and evaporated and powdered miik which would be the subject of later reports.