BETTER TO CHEESE

Manawatu Standard, Volume LX, Issue 250, 19 September 1940, Page 8

BETTER TO CHEESE

FINANCE FOR FARMERS. MINISTER’S OUTLINE. Tho provision of finance for farmer* who have had to incur expense for changing over from supplying buttei factories to cheese factories was the subject of a letter from.-th© Minister of Marketing (Hon. W. Nash received at the monthly meeting of the Manawatu and West Coast Dairy Association to-day. At the last meeting the association decided to suggest that the cost of the change-over be met by the Government. , The letter from the Minister acknowledged that there would be expense involved, and also thaf every supplier who was requested to make the change-over required the finance to enable him to secure the necessary equipm<The letter proceeded: “It will be preferable that suppliers should look first to their own dairy companies, or other normal channels, tor the financial assistance necessary. It, however, suppliers are quite unable to obtain that financial assistance from their dairy companies-, banker, or mortgagee, the Government will arrange for them to receive assistance through the State Advances Corporation The arrangement will be on the basis that the amount advanced is to be repaid over a reasonable period, taking all aspects of the existing circumstances into account. If, however, before the end of the repayment period, circumstances should change and the supplier is returned to cream supply, the Government, through the State Advances Corporation and through the dairy companies, will agree to compensate the supplier and, if necessary, take back the plant purchased at A fair value.”

Mr J. Boyce: It is not a question of raising the finance. Any dairy company can do that.. It is a questioiy of who is going to pay for the material. Mr P. Hansen: The position is that the Government expects the farmer to carry the load. The chairman (Mr S. A. Broadbelt): We have not got much farther ahead. Mr Boyce moved that the Dairy Board be asked to finance the changeover. The board’s levy had been doubled for this year, and the board had plenty of money, he said. For some of the new suppliers the expense would be £IOO. It was not fair for some men to have to shoulder this cost when others did not have bo spend anything extra. A fair cost should be met. Mi- R. Craig: Not for buying a horse and cart, for instance, that should have been on the farm anyway, instead of a motor-lorry. Mr Boyce: But the cost of cans, putting up a milk stand and altering the milking machinery is a fair cost. The board is in a sound financial position. Mr S. Algar: I don’t know whether it is. It has had to find £15,000 for herd improvement plans, and I think it is very questionable whether there will be any great benefit from this expenditure. " / Mr Boyce: The sire survey will be valuable.

The chairman: Compensation is evidently to be given at the end of the term. It should be given now. Mr Boyce: I don’t care who gives it, but it - appears that we will not get anything from the Government. Mr Boyce withdrew his first motion and proposed a recommendation that compensation be paid now, instead of at the end of the period. This was seconded by Mr Craig and carried.