DAIRY SUBSIDY

Dominion, Volume 37, Issue 192, 12 May 1944, Page 5

DAIRY SUBSIDY

Australian Increase (’ANBE.RIRA. May 11. An increase in the Australian dairy subsidy of at least £l.OOO 000 over the £6,500.000 nnid last year is expected as a result of a Federal Cabinet decision to change the basis of the subsidy. Retrospectively as from April 1 the basic subsidy of Sid. a. pound will be paid on commercial butter throughout the year, and a subsidy at the rate of 2d. a pound will be paid during the “nonflush” months. The total subsidy will thus average -lid. a pound over the production of the whole year. The Acting Prime Minister, Mr. Forde, in announcing the decision, said that the Cabinet had increased the amount of the subsidy ami related payments more closely to the higher costs in the “nonflush” months in each State, with the object of stepping up production in those months. On an output of 180.000 tons of dairy products, the total_ would be approximate!'-' £7.500,000, £1.090.000 more than the payments made hist year. The new subsidy plan will be operative for two years from April 1. but will bo reviewed by the Government at the end of the first year, and an announcement will then be made as to whether the scheme will be extended for a third year.