CHEESE EXPORTS

Wairarapa Times-Age, 30 July 1941, Page 4

CHEESE EXPORTS

QUESTION OF INCREASE IN PRICE STATEMENT BY MINISTER. WHOLE POSITION UNDER REVIEW. (By Telegraph—Press Association.) WELLINGTON, This Day. In the House of Representatives yesterday the attention of the Minister of Agriculture (Mr Barclay) was directed by Mr Wilkinson to a report that Britain had made an arrangement with Australia to purchase cheese at 5s 9d sterling a cwt more than was paid last season. Mr Wilkinson asked whether a similar arrangement had been made for New Zealand.

Mr Barclay said the Government was aware of certain public pronouncements which had been made in Australia, and in particular by a Mr Plunket, a member of the Australian Dairy Board, who said that he could advise the industry that it was confidently expected that the United Kingdom Government would grant an increase in the price of cheese to Australia of 5s- 9d a cwt. No official announcement had yet been made by the Commonwealth Government.

Though negotiations between the United Kingdom and New Zealand Government were not yet' completed, the New Zealand Government was confident that if such an increase was given to Australia, a similar concession would be made to New Zealand. Any such increase would be granted by the Ministry of Food solely on account of a recognition of the increased costs devolving on both countries as a result of the increased demand by the United Kingdom for increased quantities of cheese. In that connection the assessed liabilities of the New Zealand Government to date were as follows:—Government grant to individual suppliers making the change-over, £80,000; cost of purchase of whey butter which could not 1 be sold to the United Kingdom Government, £450,000; subsidy for cheese crates, £30,000; provision of plant and equipment for cheese factories, £175,000; provision of houses for cheese factory employees, £200,000; compensation to butter and cheese companies for increased costs due to the change-over to cheese, £125,000. These liabilities totalled approximately £1,000,000, and would therefore be barely covered by an increase in the price of cheese of 5s 9d a cwt. “It should also be pointed out,” added the Minister, “that this estimate does not take into account the erection of additional storage and possible provision for storage charges, interest and insurance. As soon as negotiations are completed a public announcement will be made, and if any increase is finally obtained, it will be considered by the Government in relation to the whole question of the change-over from butter to cheese, and of the additional costs incurred in this connection.”