PRICES OF FERTILISERS

Chronicle (Levin), 25 September 1947, Page 7

PRICES OF FERTILISERS

MINISTERS ASKED QUESTIONS IN HOUSE * WELLIN GTON, Sept. 24. "This puts the skids under the .■cmmission investigating high eountry • farming and we might as well save the eountry the expense of its investiga11008/' declared Mr. P. Kearins (Waimarino) in the House of Representatives, wheri discussing the effect of the removal of the subsidies on fertiliser priees. Mr. Ivearins affirmed that the main fertiliser subsidy had beem renoved, not by the Government but by the leaders of the farming industry. Mr. Kearins had a'sked the Minister if Industries and Commerce to inforin the House why the Meat and Dairy Boards had withdrawn the subsidy on 'fertilisers which was formdrly paid mt of the pool aceounts. Mt. A. II. Nordiueyer replied: "I am ldvised that the decision to disc-ontinae ihe fertiliser subsidy and to pav liigher orices to compensate for the increased •osts, was niade after full eonsideration of all the factors involved. " Mr. Kearins said he had received ,many complaints from high eountry larmers whose land miglit go out of production as the result of the withdrawal of subsidies. Fanners shouid realise that it was their own org&nisalions that had asseuted to the withdrawal of the main subsidy of £4 10s per ton on ferilisers. The Government was responsible only for the withdrawal of the subsidy of 30s a ton. Mr. Kearins said hand spreading of ' fertilisers in accessible hill eountry ' oost £2 per ton and in areas wliere packhorses were required, the total cost of fertiliser might nOw be as high as £15 a ton when distribution costs wero added to the purchase price. Increased prices for l'arm products would not . necessarily offset this as the sale of J store stock from the hill eountry wa- ; always something of a gamble. Mr. S. W. Sniith. (Hobson) said Mr i Kearins had castigated the leaders or the farming industry by atteinpting to blanie them for the cancellation of the 1 subsidies and it shonld be remeinberco that the nroney in the pool accounts was already the fanners' own moncy and tu use this money to pav subsidies did not reduce to any great extent the totai subsidy charges on the C'onsolidatod

v uud. I he subsidies were cut out 'be cause. Treasury ofiicials decided they were becoming too costly. Mr. Waiiti] said, however, that he considered a mistake had beeu made in reducin^ subsidy payments f~om the pool aceounts .at Ihe present stage when the production drive was in progress. The ] psychological effect of increased fertil- ! iser prices might be disastrous. Thu I Government shouid say whethcr the j free rail cartage of lime ,was to be discontinuetf aud, if so, whethcr a consequential adjustment in ineat and dairy produce prices would be made. Mr. E. B. (,'orbett (Eginont) said it was at the iustigation of the Government aird not the priiuary producers , that the subsidies were removed. The | prirnary producers agreed in principle but understood that full compensatory payments would bc niade on their products. Mr. Kearins: What about the back countrv fariner 011 poor land? Mr. ('orbett: He will be 110 worse ofl: than before. Mr. C'orbett added that the removal •if the subsidies would have a great effect 011 production. The -titne for a lotal v. itltd was not qiporttuie espeVmlJyY'-. as it came when the increased production drive was in its infancy. Mr. W. J. Broadfoot (Waitomo) said there was grave disquiet among primarv producers because the fucts ou which the alterntions had been made were not available to tlicm. There were 110 details as to liow the increased prices would be niade uj) to the farming cominunity but there were rumours that the cost of lime to producers would be doubl-Hi. Had that been taken into cousideiT.tion wheu the produce priees were fi.xedf He said it was a great pity that closer consultations had not been held with the iiulividual farmer on the fixation of prices. Mr. Xash said the dairy and meat industry aceounts were controlled by the respoctive industries and the Goverumeiit could nol docide what was to be paid out of them. '