LIME AND FERTILISER

Chronicle (Levin), 8 November 1947, Page 4

LIME AND FERTILISER

Press Assockttion)

NEW SUBSIDY SCHEME BEFORE HOIJSE ,

(Per

WELLINGTON, Nov. 7. An acknowledgment that the abolition of subsidies on fertiliser and on the railage of lime, had operated mequitahly over sections of the farming community and that farmers on marginal and undeveloped land would not receive adequate compensation for the increased costs, was made in a report of the agricultural and pastoral committee presented to the Houes of Representatives late this s afternoon. The committee made several recommendations intended to foster the development of marginal lands upon which the prosperity of the whole of the primary industries of New Zealand is field to depend. The Teport, which. was presented by Mr. Ormond Wilson, said the committee was asked to consider the effect of including the cost of fertiliser, lime and freights thereon, in the purchase_ price of dairy produce and meats, in lieu of the previous practiee of meeting part of such costs out of the dairy and meat industry aecounts and out of the Consolidated Fund. The committee was also asked to consider to what extent the utilisation of back country ancl marginal land might be retarded by a lack of adequate applications of lime and/or fertiliser at the new costs and to make what recommendations in these matters it thouglit fit. Mr. Wilson said the committee received evidence from the Stabilisation Commission3 Dairy Products Marketing Commission, Meat and Dairy Boards and various farmers' organisations, lime companies and other bodies; also from the Departments of Agriculture, Scientific and Industrial Researcli and Railways. The report continued: "Having considered the evidence, the committee is of opinion that the abolition of subsidies on fertiliser and on the railage of lime has operated inequitably pver certain sections of the farming community. Some farmers, particulariy those on first class and developed land, will receive, through the increases inprices ^of meat and butterfat, as much as or more than they previously received through the operation of the subsidies. Other farmers, particulariy chose on marginal and undeveloped lana, will not receive adequate compensation for the increased costs. It would therefore appear that developmental worlt on these lands will, in many cases, be handicapped and hindered with a eorresponding decline of production from

these marginal lands. "The committee is of opinion that the prosperity of the whole of tne primary industries of New Zealand is bound up with the development of our marginal lands. It therefore views its own work in studving the question of lime and fertiliser, as merelv part of a much wider problem of the full utilisation of the resources which are avaiiable for development in our bacK country. "The committee feels, however, that the recommendations it has to make, if carried out, will be a worthwhile contribution towards this." The committee 's recommendations

deal separately with the questions ot lime and fertiliser. Lime. 1 ' Firstly, that free railage of lime up to 100 miles be not restored. "Seeondly, that in order to assist particulariy these areas where transport costs are high andVhere developmental work has still to be undertaken, a new svstein of subsidy on a graduated scaie covering both rail and road transport, be introduced, namely, the rail farmer to pay in full for the first' 25 miles of all carriage of lime by rail, and a subsidy of 50 per cent. of the charges to be paid on any distance between the 25th and 75th mile, the subsidy being increased to 75 per cent. on distances beyond the 75th mile. "Road: A flat subsidy of 4d per mile per ton (as road haulage charges are proportionately higher for shorter than for longer distances, the effect of the subsidy will be a correspondinglv greater benefit for longer distances). "Thirdly, the committee further recommehds that because tlie Renefit ot '..hese subsidies wilV go mainly to those engaged in the meat and dairying industries, the Government should discuss with representatives of these industries appropriate means of meeting their cost. Fertiliser. "Firstly, that the former subsidy be not restored. "Seeondly, that to assist in the lmprovement of marginal lands which require considerable amounts of phosphatic fertiliser to develop their potential productive capacitv, a tonnage of phosphatic fertiliser reasonablv required and available, to be reserved for this purpose, the tonnage to be allocated to farmers for development and lmpi ovement of these lands* and the allo-: eations to be subsidised so as to reduce the price of these allocations to a reasonable level. Thirdly, the committee is strongl}7 of opinion that the development of marginal lands and resulting increase in producflon will not only increase our exportable surplus but will also be to the direct advantage of the wfioie of the primary industries of the country through bringing more land into use and lncreasing the supply of store stoek. In view of this and because this : purpose appears clearly in accordance with tlie terms of. oue section of the Dairy Produets Marketing Commission Act, 1947, which states that out of the dairy industry aceount may be paia any moneys which the Commission, Dany Board and Minister agree shall be payable for any purpose which thev deeni to be of benefit to the dairy industry, ' and because this purpose is also in accordance with the agreement between tlie Government and Meat Produeers' Board as stated in a letter from the Prime Minister to the ehairman of the board dated November 30, 1944 which declared that 'the balance finally remaining in the meat pool account anci meat industry stabilisation account belong to and shall be held for the benefit of the industry,' the eommittee is of opinion that the cost of the subsidy should come out of these aecounts and it aecordingly recommends that the Government open diseussions with re-

presentatives of the meat and dairying industries witli this objeet in view." Mr. Wilson said the report was unanimous in its recommendations about lime but the recommendations about fertiliser were those of a majority of the committee. The report will be diseussed on Tuesday or Wednesday of next week.