REMOVAL OF SUBSIDY

Opotiki News, Volume X, Issue 1047, 18 November 1947, Page 4

REMOVAL OF SUBSIDY

MANURE ANIJ LIME QUESTION OF REPERCUSSION Dissatisfaction with the recommendations of the Agricultural and Pastoral Committee relating to the eupply of fertiliser was expressed by Mr. W. Sulliv.au (National, Bay of Plenty), when ‘ the committee’s report was considered by the' House of Representatives. " Mr. Sullivan urged that the report be referred back to the committee, with a ’view to a more satisfactory recommendation being presented dealing with distribution and price of fertiliser so as to ensure that production generally would be maintained, especially on marginal lands. While it might cost the country some thousands of pounds annually by way of subsidies, the increased production and the benefits accruing from the more extensive use of fertilisers would bring back money tenfold to the State accounts, he said.

It was easy to measure the cost of subsidies, but it was most difficult to measure the amount that came back to the Treasury because of increased production and the taxation levied on the farmer. Under the existing state of affairs there was no hope for the man on the marginal country, and in, many cases the compensatory price did not cover the extra cost the farmer had to pay on the .poorer country. Mr. Sullivan maintained that there was a definite case for continuing the national subsidies so far as fertilisers were concerned.

The recommendations of the committee would meet the lime situation to a very large extent. They were that the farmer would pay the railage on the first 25 miles, and between 25 and 75 miles he would receive a subsidy of 50 per cent., and over 75 miles a subsidy of 75 per cent. A new feature had been introduced inasmuch as the recommendation provided for a subsidy on road haulage ex-works and ex-rail to the extent of Id. per mile for each mile of road haulage.

Mr. Sullivan emphasised that there had been widespread disturbances over the removal of subsidies on both lime and fertiliser. Those who travelled about the country knew' the disastrous effect that the removal of the subsidy was going to have on production in both the meat and dairy industries. The evidence given before the committee revealed that becauso of the removal of the subsidies there would be a falling off in the usage of manures to the extent that (-production would ultimately fall and the nation would suffer as a result.