COMPENSATION TO FARMERS

Evening Star, Issue 24330, 20 October 1942, Page 4

COMPENSATION TO FARMERS

THE CHANGE-OVER OF INDUSTRY

(Special.) * WELLINGTON, Oct. 20. When coiiskluralion was being given in committee of the House of Kepiesentatives yesterday to a clause in the J'iminco Bill (No. 2) authorising payment out of the dairy industry account of contributions inwards capital expenditure incurred in the reorganisation of the industry to meet war-time requirements, Mr Poison asked the Minister of Marketing to state the general principle to be followed in compensating fa rmors in cases of hardship. The Minister said that because of the varying nature of cases it was difficult to introduce ,a blanket clause. All cases of hardship were dealt with individually. He wauled I lie farmers to understand that of the a pound authorised for compensation, half that amount was lo make up for loss of pigs when Ihe producers changed over to cheese supply; the balance was to offset other factors arising from the change back. Not only were all cases being cfealt with on I heir merits, but also ns liberally as possible. In reply to Mr Goosman, (he Minister said the whole of ihe amounts would be paid out cither by the increased prices dairy farmers were receiving this year, or in compensation. He could net give the exact figures, but for the last year it would be about £1,000,000, and this year it would be about £600,000. With normal output this year it was anticipated that the dairy account would break even at the end of the season. Mr (icosman: So that the British Government is paying the toial amount, and the New Zealand Government nothing. “ If we get our butter and cheese away,” replied the Minisiei. ‘‘lf the butter and cheese doesn't gel away Ibo New Zealand Government takes the risk of losing the wiioie lot. Wo arc paying for butter and cheese eight w'eeks after receipt into the grading store. There is a vast difference between paying f.C'.b. and paying in eight weeks’ time.”