SUBSIDY WITHDRAWN

Dominion, Volume 32, Issue 151, 22 March 1939, Page 6

SUBSIDY WITHDRAWN

Allowance For Apples Marketed Locally

NO GUARANTEED PRICE NEXT SEASON By Telegraph—Press Association. AUCKLAND, March 21. Auckland and provincial fruitgrowers have been informed by tlie Government tliar, its subsidy for locally-marketed apples has been withdrawn and that no export guaranteed price will be paid next season. At present tlie subsidy is computed on the difference between the assessed Dominion average price a ease and 5/2. It is expected that last year’s pay-out, which should be made at the end of this month, will amount to about £lOO,OOO, or possibly more. Growers stated that they believed the Government’s refusal to continue with the subsidy was due in a large measure to dissatisfaction with some of tlie growers. Several of them stated that the Minister of Marketing, Mr. Nash, had drawn the attention of growers to their responsibility to the Government under the scheme. A s a result of the Government’s decision the growers expect to be paid a subsidy for fruit marketed locally to the end of December; they do not expect any payment for apples marketed locally since then. The export guarantee will operate to the close of the presnet season, which is at the end of May, but not after that.

The serious nature of the move was stated by growers to lie in the fact that they relied on the Government’s assistance to arrange necessary capital for the conduct of their orchards. It served as a security for bank overdrafts and permitted advance importation of such materials as cases.