FARMING AFFAIRS

Lake County Mail, Issue 29, 10 December 1947, Page 6

FARMING AFFAIRS

\ This column is supplied weekly by Fed:rated Fanners of New Zea--90 land. The information given is official but any views expressed are those of the federation and are not necessarily those of this newspaper. LIME FREIGHT SUBSIDY The new-basis of lime freight subsidies as announced by the Minister of Agriculture at the week-end approximates the plan put forward by Federated Farmers rather than that recommended by the Agricultural and Pastoral Committee of the House of Representatives which recently ex--1 amined and reported on the position. The Federation’s plan provided that the farmer paid the first 15 miles freight by rail in full and that 60 per cent of the freight charges thereafter be subsidised by the State on the basis of a cartage 1 at 4d per mile. The approved scheme reduces the rail subsidy after the first 15 miles from 60 per cent, to 50 per cent, and gives an allowance of 4d per mile on road cartage after 3 miles from the railhead. The Parliamentary Committee’s scheme provided that the farmer paid the first 25 miles on railage in full and that the subsidy be 50 per cent, up to 75 miles with an increase beyond that distance. Road freights were to be subsidised at 4d per mile. The various schemes as applicable to the farmer, can bp compared as follows: (Railage Paid by Farmers) nd 0? fVr O V o > £ &*) © a . s gs S5 ® S | ft 2 g; J2 cS (J ® ’S . r v 5* o Ofi Ph 802 frCQ Miles sd s'd sd sd .. 80 69 55 510 Sre .. 10 2 710 6 3 611 100 .. 12 2 8.4,7 1 711 150 ..16 ; ,6 9 5 810 10 1 It must, however, be realised that the alternative plan of Federated Farmers was proposed purely because the Government appeared adamant on its intention to limit the subsidies and not to exceed previous costs. The. total cost of the Parliamentary scheme was estimated at £175,000 a year which was the maximum figure which the Government - was prepared to approve. The subsidy for 1946-47 was £256,000. The alternative plan of Federated Farmers would cost approximately £250,000 a year and the approved scheme will cost approximately £200,000. The most equitable plan, however and the one which alone meets with the full requirements of the Federation is that the Lime Committee*, which recommended State subsidisation of 75 per cent, of rail freights and 60 per cent, of other freights. The Minister in .his statement gives no specific details of the source of the new subsidies. Presumably they will be paid from the Meat and Dairy Stabilisation Accounts. There is yet no information available concerning the Government’s attitude to the Parliamentary Committee’s recomendations on superphosphate. While that comraitte recommended that the former subsidy on fertiliser be not restored, it did suggest that assistance be given in this respect to the marginal land farmer. It recommended the reservation of the necessary tonnage for such a purpose and that those allocations be subsidised so as to reduce the price /to a reasonable level. A more specific idea of earmarking the first 100,000 tons of super for marginal land use at approximately £6 per ton was jettisoned owing to administrative difficulties. '■ Federated Farmers is prepared to agree to any reasonable scheme for helping the man on marginal land and has previously replied that if land in New Zealand was properly classified no such administration difficulties would arise. The federation has already recommended classification in its evidence to the Sheep Industry Commission.