DAIRY INDUSTRY

Gisborne Herald, Volume LXIX, Issue 20919, 20 October 1942, Page 3

DAIRY INDUSTRY

COMPENSATION BASIS PAYMENT TO FARMERS WARTIME CHANGE-OVER tP.R.) WELLINGTON, this day. When consideration was being given in committee in the House of Representatives yesterday to a clause in the Finance Bill (No. 2), authorising the payment out of the dairy industry account of contributions towards capital expenditure incurred in the reorganisation of the industry to meet; war-time requirements, Mr. W. J. Poison (Nat. Stratford), . asked the Minister of Marketing, the Hon. J. G. Barclay, to state the general principle (.0 be followed in compensating farmers in cases of hardship. The Minister said that because of the varying nature of the cases it was difficult to introduce a blanket clause. All cases of hardship were dealt with individually. He wanted farmers to understand that of the lid. per lb. authorised for compensation, half that amount was to make up for the loss of pigs when the producers changed over to cheese supply. The balance was to offset other factors arising from the change back. Not only were all cases being dealt with on their merits, but also as liberally as possible. In reply to Mr. W } S. Goosman (Nat. Waikato), the Minister said the whole of the amounts would be paid out,either by increased prices which the dairy farmers were receiving this year, or in compensation. He could not give the exact figures, but for last year it would be about £1,000,000, and (his year it would be about £600,000.' With a normal output this year,, it was anticipated that the dairy account would break even by the end of the season. Mr. Goosman: So that the British Government is paying the total amount and the New Zealand Government nothing? “If we get our butter and cheese away,” replied the Minister. “If the butter and cheese does not get away, the New Zealand Government takes the risk of losing the whole lot. We are paying for the butter and cheese eight weeks after receipt into the grading store. There is a vast difference between paying f.o.b. and paying in eight weeks’ time.”