FINAL SURPLUS

Wairarapa Times-Age, 7 September 1938, Page 5

FINAL SURPLUS

IN DAIRY INDUSTRY ACCOUNT HON W. NASH’S ESTIMATE FOR LAST YEAR SLIGHTLY MORE THAN HALF A MILLION (By Telegraph—Press Association.) WELLINGTON, This Day. An estimated surplus of about £500,000 in the Dairy Industry Account for the year ended July 31 was announced by the Minister of Marketing, the Hon W. Nash, during the discussion on the estimates of the Dairy Industry Account in the House of Representatives last night. The Minister said that, as at September 1, there was a surplus of £291,706 and that 14,000 tons of butter and 12,000 tons of cheese from last season’s make had still to be sold. When the vote came up for consideration, the Leader of the Opposition, the Hon Adam Hamilton, suggested that an estimate from the Minister concerning the possible surplus would simplify discussion. After the Minister had given his figure of £291,706 as the surplus at September 1, Mr Hamilton asked if stocks on hand had been included in that valuation. Mr Nash: “That is the actual surplus.”

The Rt Hon J. G. Coates (OpposiI tion, Kaipara): “As I understand the Minister, there is a credit of approximately £291,000. Is that the result of actual sales—the credit over and above all costs? Mr Nash: “Yes, as closely as we can estimate it. It is the result of actual sales, less actual payments to farmers and expenses.” The Minister added that it was impossible to estimate tO' a pound what the costs of selling would be. Mr Coates- asked if it would be possible to say how long it would take for the sale of the 14,000 tons of butter mentioned by the Minister to be credited to the account. The Marketing Department was dealing with these matters month by month and it should be possible to make a very close estimate. Such an estimate would be extremely helpful to many people who were endeavouring to discover how the account stood. Mr Nash said the figure quoted for September 1 was as accurate as possible.

In answer to further questions by Mr Coates, the Minister said that the remaining stocks of butter would probably make approximately 118 s per cwt., which was about 3s in excess of the guaranteed price. “The point I am trying to make,” said Mr Coates, “is that 14,000 tons of butter has been bought and paid for. Has the whole of that realisation still to come in or only the difference of 3s per cwt between the price paid and the price likely to be received? Does this mean approximately another £1,000,000?” Mr Nash: “I think the final surplus will be slightly more than £500,000.” Mr J. Hargest (Opposition, Awarua): “A little frankness on the part of the Minister would probably allow the estimate to go through.” In answer to questions from Mr Hamilton, the Minister said that profits from local sales were not included in the estimate he had given. There was likely to be a further surplus of £lOO,OOO in the internal marketing account. Mr Hamilton said it appeared to him that farmers supplying the local market were receiving less for their butter than farmers who were selling for export.” Mr Nash: “They are getting more than they would have received without the Marketing Department.” Mr Hamilton: “Nobody can prove that, of course.” The vote was then passed.

ANOTHER ESTIMATE CAMBRIDGE DAIRY DIRECTOR'S OPINION TOTAL SURPLUS OF £1,130,000 (By Telegraph—Press Association.) AUCKLAND, September 6. “When cash is remitted from overseas to the Primary Products Marketing Department there will be a credit of £940,000 on butter and of £190,000 on cheese,” said Mr Mervyn Wells, Cambridge, in a statement today. Mr Wells, who has been a director of the Cambridge Co-operative Dairy Company, Limited, for 20 years, said he based his opinion on a comprehensive analysis of marketing statistics. “Speaking in plain terms of money, the butter producer who supplies 24,000 lb of butterfat has £7O in the department’s hands, and, of course, the man with half that output had £35 withheld for no reason at all,” Mr Wells stated, after setting out the details on which his estimate is based. “It means that dairy produce realised £1,945,349 more than the guaranteed price. Last July £815,349 was paid after the department • had the use of the money during the > year and the balance of £1,130,000 is , well overdue. “When English merchants handled , our produce, interest at bank rate was 1 allotted on credit surpluses and they were always remitted by cable on request. It seems now that interests is not to be accounted for, and if the principal is paid it will be as an act of grace performed at an indefinite date. “The Prime Minister has promised that the surplus will be refunded to its owners,” Mr Wells added. “The Leader of the Opposition, the Hon Adam Hamilton, has made an even stronger promise. What is needed is ( expeditious performance by Mr Nash.” .