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Chronicle (Levin), 21 August 1948, Page 5

Press Asso.oiation)

(Per-

WELLINGTON, August 20. "The removal of the 25 per cent. chauge of premium must* naturally liave been a great shoek to all primaiy producers," said' Mr. W. E. Jlaie, chairman of tlie Xew Zealand Pairy Board. "The dairy industry's case for I adjustiuents of its priee i'or the present season has been prepared by its costs committee and along with written subinissions delivered to the Dairy Products Marketing Commission on August 11," said Mr. Ilale. "We were hopeful that the Commission would have been alilo to liave announced the new sea son 's priee uell before the, end ot August, and with that in mind tlie Dairy Board, Dairy industry Council and Dominion Dairy Conference have been called for the lirst week in Septeinber. ' ' Tlre wiping out of the e.^change rate in oue fell swoop must cause greaj confusion as to the future in the mincls of tlie whole of the farming conmiunity. Furtheriuore, wliilst we fully recognise that the Government could not consult with any sectiou of the industry concerning an alteration in tlie e.xchange rate, it seenis grossly unfair that this alteration should be timed to ocrur immediately after negotiatioiiliad been completed by tlie Dairy Comuiission in London for a contract for dairy produce 011 a seven-year basis. Burely tlie Governuitut 's announcemeiil > houhi have been iun.de before the n,ego nations were undertakeu in London. "This drastic exchange mauipulation m'ust liave some elfeet 011 primary producers' costs, but vvliat this will iie for tlie forthcoining season is impossiblti to j ; ascertain. It will take some iittle time to examine the widespread elfeet s of this liiajor alteration in exchange,. but the Dairy Board 's organisation will do everything possible to secpre fhe C0111 mission's aiuiouncement of the priee by the meeting date. of the Dominion Dairy Conference. "Reali'sing the disturbed state of mind of the dairy industry 1 w.oukl Jike to say that Hoth'the Board and Co'uricil will be giving very close attention to the new problems that have arisen, and I sugge.sr that daiiy farmers .witlihold liual judgmeut until the priee for* the season is made known." The Xew Zealand Dairy Pr?duets Marketing Commission met today but issued 110 statenieut on the effect of the alteration in the exchange rate.