The Other Way Round Says Mr. Nash

Chronicle (Levin), 6 October 1948, Page 5

The Other Way Round Says Mr. Nash

. WELLINGTON ,0et. 5. The Prime Minister, Mr. Fraser, has advised the Dominion president of Federated Farmers, Mr. W. N. Perry, that the Government. intends to adhere to its present policy and is therefore unable to accede to the request of Federated Farmers that "in view of the exchange rate, the consumer subsidy provided by a farmer in respect of hides, pelts, calfskin and tallow, should be tevninated. " Mr. Fraser said he wished to draw Mr. Perry 's attention to a question on the subject asked by the member for Hauraki, Mr. Butherland, in the House of Representatives and to the reply given by Mr. Nash, who had said: "It is incorrect to state that consumer subsidies are made at the expense of primary producers, from the proceeds of hides, pelts, tallow, etc., used loeally. As is the case with other essential commodities which are both exported and used locallv, supplies are made available to local consumers at a stabilised price adequate to cover the costs of production, plus a reasonable margin of proflt to the producer. Supplies in excess of local requirements are exported and have recently received higher prices, the excess being set aside and held in stabilisation accounts for the future Uenefit of the industry. ' '