HIDES & SKINS FOR N.Z. USE NOT SUBSIDISED BY FARMERS

Grey River Argus, 6 October 1948, Page 3

HIDES & SKINS FOR N.Z. USE NOT SUBSIDISED BY FARMERS

Mr. Fraser’s Reply To Federation

P.A. WELLINGTON, October 5. The Prime Minister, Rt. Hon. P. Fraser, has advised the Dominion President of the Federated Farmers, Mr. W. N. Perry, that the Government intends to adhere to its present policy, and-is, therefore, unable to accede to a request of the Federated Farmers that “in view of the exchange rate, the consumer subsidy provided by the farmer' in respect of hides, pelts, calf skins, and tallow should be terminated.” Mr. Fraser said that he wished to draw Mr. Perry’s attention to a question on this subject asked by the Member for Hauraki, Mr. A. S. Sutherland, in the House of Representatives, and to the reply given on September 15 by Rt. Hon. W. Nash. Mr. Nash had said: “It is incorrect to state that consumer subsidies are made at the expense of primary producers from proceeds of hides, pelts, tallow ,etc., used locally. As is the case with other essential commodities .which are both exported and used locally, supplies are made available to local consumers at a stabilised price adequate to cover the costs of production, plus a reasonable margin of profit to the producer. Supplies in excess of the local requirements are exported, and these have recently received, higher prices, the excess being set aside, and held in Stabilisation Accounts for the future benefit of the industry,”