EXCHARGE TAX ON DAIRY FARMERS.

Shannon News, 2 September 1924, Page 3

EXCHARGE TAX ON DAIRY FARMERS.

SOME SIGNIFICANT FIGURES. The heavy tax on the dairy industry caused by the excessive bank charges for exchange on London was referred to by Mr R. Cobbe at the Cheltenham Dairy Co.’s meeting Mr Gobbe drew the attention of shareholders to the fact that there is a certain fluctuating financial charge on the export business of the company, and it is a charge Avhich swells our export expanses account. The staff and directors have no control over it and the past year’s reduction in management and general overhead expenses in the factory itself, has been offset by the rise ' in exchange rates. The rates have risen from 5s per cent, in February, 192 a, to 40s per cent, to-day, with every prospect of a further rise. During file 1922-23 season -exchange Cost the company £3694 Is ■ 6d, and for the past season £4538 12s 9d, being a charge of .42d per lb. of butterfat, or just under a halfpenny. To-day’s exchange rate amounts to, this, that the. banks are charging .15 per cent, for advances made against butter and cheese though the security offered is gilt edged. This season’s exchange will cost the dairying indtistry something in the vicinity -of a million pounds, and under the old gold point standard the charge would lie only about half this amount.