REASON FOR MARGIN

Hawke's Bay Herald-Tribune, Issue 110, 26 May 1937, Page 7

REASON FOR MARGIN

— freis Association.)

*-* m Acting-Prime Minister - Explains

(Br TslsgrSSh

HAWEBA, Last Night, "The intention of the Government is to fix the prices of butter and cheese on a basis which -will enable an averagely efficient and economic cheese manufacturing company to pay its suppliers sttch an amount per pound for butterfat in excess of the rate paid to an averagely efficient and economic butter manufacturing 'company as will stabiltse the production of bo'th cheese and butter," said Hon. P. Fraser, actingPrime Minister, at the opening of the •Winter Show to-night. The marginal payment in favour of cheese aimed at for this season was lld per pound for butterfat. "In view of th® urgency of the matter the Government requested the committee appointed to make recommendations in regard.to prices to give consideration to an appropriate marginal payment in favour of cheese for the coming season. The committee had made the reeommendation which has been approved by the Government. The Governigent realised the necessity of maintaining the cheesO eXports of the Dominion and knew that cheese intdrests were apprehensive that there might be ,a chang-eoVer of supply from cheese factories to butter factories.

"The Government agreed with the committee in stressing the necessity for the stabilisation of the production Of cheose in the Lominion and it eonsidered that in order to aohieve that object the basic guaranteed price of cheese in relation to that of butter should be so fixed as to prov^de a marginal payment in favour of 'cheese of , twopence per pound of butterfat. This marginal price of twopence per pound is expected to be realised by those cheese manufacturing companies showing cheese yield and. coflt flgures which taken together give at least the average manufacturing results of cheese factories throughout the Dominion. Thus a cheese manufacturing company showing cost flgures higher than the average Vor cheese yield lower than the average .might not realise the full marginal payfment of twopence per pound."