CHEESE TO BUTTER

Dominion, Volume 36, Issue 21, 20 October 1942, Page 4

CHEESE TO BUTTER

Meeting Reversion Costs MINISTER’S EXPLANATION

The payment of compensation to dairy-farmers who have been required to change over this season from cheese to butter factory supply was raised during the committee stages of the Finance Bill (No. 2) in the House yesterday. A clause in the Bill authorizes payment out of the Dairy Industry Account of contributions toward capital expenditure incurred in the reorganization of the industry. Mr. Polson (Opposition, Stratford) asked how far the provisions were intended to go. He and other members had received representations from farmers pointing to hardships created by the change back from cheese to butter supply. There were cases where farmers had arranged to change over to cheese supply and had then been instructed to revert to butter supply without having delivered any milk for cheese factories. None of those would benefit from the additional lid. a lb. z to be paid for butterfat this season and he requested the Minister to state the general principle proposed to be adopted in compensating those farmers.

The Minister of Marketing, Mr. Barclay, said the varying nature of the cases made it difficult to introduce a blanket clause and so all cases of hardship were being dealt with individually. They were first considered by Sir Francis Frazer, of the Commission of Agriculture, and the Director of Marketing, and then referred to himself as Minister.

Mr. Goosman (Opposition, Waikato): Have you fixed a maximum compensation? The Minister: No, but a fairly good sum has been granted already. Loss of Pigs.

Mr. Barclay said that of the IJd. a lb. authorized for compensation half was to make up for the loss of pigs when producers changed over to cheese supply. The balance was to offset the other factors, arising from the changeback. The departmental officers were cheeking applications and making recommendations and they had been instructed not to be cheeseparing in their assessments of the compensation ■ claims. He could assure the House all cases were being dealt with on their merits and as- liberally as possible. Mr. Goosman asked if.the Minister could give any indication of the total amount which would be payable-to the farmers from the extra 6/9 a.cwt., for cheese last year, and the lid. for this year. Mr. Barclay said the whole amount received from the British Government would be paid to the farmers, either by increased price or compensation. He could not give exact figures, but there would be additional payments amounting to about £1,000,000 last year, and £600,000 this year. With normal output this year it was expected that the dairy account would break even at the end of the season. He reminded members that payment was made for produce at eight weeks. If the produce could not -be got away the New Zealand Government took the risk of losing money as there was a vast difference between f.o.b. and the eight weeks payments.