DAIRY INDUSTRY ACCOUNT.

Waikato Times, Volume 121, Issue 20257, 28 July 1937, Page 6

DAIRY INDUSTRY ACCOUNT.

It is generally expected that there will be a substantial credit balance in the Dairy Industry Account as far a„s the transactions in cheese are concerned, and the producers will be preparing the brief for their claim to the amount, whatever it may be. Naturally, during the discussions that preceded the introduction of the new order, those responsible for the legislation had to give their views on this matter among others. The issue was raised when Mr Nash met the Dairy Conference last year and he said: “If there is a deficit in the account it is a Government liability and if there is a surplus the Government will decide how it is to be used.” That was altogether too vague so, a little later, the Minister said: “If there were a surplus then the Government would discuss with the industry what was the best thing to do with it.” Prior to that the Prime Minister had stated that any balance would be “ used solely for the benefit of the dairy farmers, who in the first place will be responsible for productioh.” This position was not satisfactory to the producers, and their anxiety was increased when Mr Nash, discussing the Reserve Bank Bill, said that if there were a surplus it woukl remain in the account, and if it so remained for some time “we might have something we could use to help the farmer a little more.” Then the leader of the Legislative Council said that the account would be a continuing one “with deficits carried forward as a set-off against possible surpluses.” 'The Government quickly sensed that this attitude was far from acceptable, and during the Budget debate last year Mr Savage made a very plain statement. “We are going,” lie said, “to give the farmer everything that is in it.” Mr Coates interjected that if that was to be the average price for eight or ten years then it was not fair, and Mr Savage replied: “Supposing wc sell butter and it averages 126 s and the farmer gets the lot of it, how much more

can he get?” This statement was endorsed in a way by the Minister of Marketing later in the debate. The present Leader of the Opposition said that there could be no objection “if the farmer could get the balance- left in the account,” and Mr Nash replied that they could nof «?ive more than they were giving, but added: “I reiterate that the farmers will get the benefit of every penny that goes into the account.” As there may be a difference between the benefit and the lmrdcash, Mr Hamilton, at once asked: “What does that mean?” and the Minister replied: “It means precisely what it says—it means that the sum in the Dairy Industry Account at the end of the financial year, the 31st. July, 1937, will bo exclusively at the disposal of the dairy industry, after consultation with the Government.” The first year’s accounts will close at the end of the week and it should not be long before the position is known, and the intention of the Government with regard to any surplus.