CHANGE TO BUTTER

Marlborough Express, Volume LXXVI, Issue 248, 21 October 1942, Page 3

CHANGE TO BUTTER

PAYMENT OF COMPENSATION. MINISTER'S EXPLANATION. The payment of compensation to dairy-farmers who ha,ve been required to change cver this season from cheese to butter factory supply was raised during the committee stages of the Finance Bill (No 2) in the House of Representatives. A clause in the Bill authorises payment out of the Dairy Industry Account of contributions towards capital expenditure incurred in the reorganisation of the industry. Mr Polson (Opposition, Stratford) asked how far the provisions were intended to go. He and other memcers had receivea representations ] from farmers pointii^g to hardships created by the change back from cheese to butter supply. There were cases where farmers had arranged to change over to cheese supply and had then been instructed to revert to butter supply wthout having delivered any milk for cheese factories. None of those would benefit from the addij tional lid a lb. to -be paid for butterfat this season and he requested the Minister to state the general principle proposed to be adopted in compensating those farmers. The Minister for Marketing, Mr Barclay, said the varying nature of the cases made it difRcult to introduce a blanket clause and so all cases of hardship were being dealt with mdividually. They were first- considered by Sir Franeis Frazer, of the Commission of Agriculture, and the Director of Marketing, and then referred to himself as Minister. Mr Goosman (Opposition, Waikato) : Have you fixed a maximum compensation ? The Minister: No, but a fairly good sum has been granted alreadv.

LOSS OF PIGS. Mr Barclay said that of the lid a lb. authorised for compensation half was to make up for the loss of pigs when producers changed over to cheese supply. The balance was to offset the other factors arising from the changeback. The departmental officers were ehecking applications and making recommendations and they had been instructed not to be cheese-paring in their assessments of the compensation claims. He could assure the House all cases were being dealt with on their merits and as iiberally as possible. Mr Goosman asked if the Minister could give any indication of the total amount which would be payable to the farmers from the extra 6s 9d a cwt.'for cheese last year, and the lid for this year. Mr Barclay said the whole amount received from the British Government would be paid to the farmers either by increased price or compensation. He could not give exaet figures, but there would be additional payments amounting toabout £1,000,000 last year, and £600,000 this year. With.normal output this year it was expected that the dairy account would break even at the end of the season. He reminded members that payment was made for produce at eight weeks. If the produce could not be got away the New Zealand Government took the risk of losing money as there was a vast difference between f.o.b. and the eight weeks payments. 1 7