Thursday, March 7, 1968 Walter R. Shaw : May I ask, Mr. Minister , pardon me if I don't get up, is that subsidy on cheese of certain grade? Number one isn't it? Hon . Daniel J. MacDonald : Yes. Walter R. Shaw : Well now, will that just about take up the slack on the removal of the Federal subsidy? It was three wasn't it? Three cents a pound on number one grade cheese ? Hon . Daniel MacDonald : Actually this would be on number two also; we don't check it that closely. Walter R. Shaw : Well yes, they had it on one and two; I think it was three cents on one, and two cents on number two. Yours would be on number one and two? Hon . Daniel J. MacDonald : Yes, thats right, pretty well up to plant. J. Walter Dingwell : This doesn't take up the slack of the loss we experienced by the reduction of the 2% on cheese Federal subsidy. It isn't sufficient to take up what we lost? Hon . Daniel J. MacDonald : This Federal subsidy we are referring to now was on for six months of the year. But anyway it has been put back on again. Walter R. Shaw : What's that? Hon . Daniel J. MacDonald : It has been slid back on again. Walter R. Shaw : Well you put it on. I think Ottawa should have got rapped over the fingers for taking that off. Hon . Daniel J. MacDonald : We rapped them, they have been rapped! Walter R. Shaw : Well, I hope you rap them again. Hon . Daniel J. MacDonald : We just love rapping them. I don't know where I was, I am nearly as confused now as the Senior Member from First Queens. Ice-cream production at 1,456,000 quarts shows an increase of 5.5% over the previous year and the gross value was $739,131. As in previous years, Mr. Speaker , the grading of butter was carried on under the direction of Mr. W. F. Rogerson assisted by officials from the Provincial Dairy Division . According to the annual report of the Canada Department of Agriculture 4,575,000 lbs. of butter were graded; 98% first grade and 1.2% second grade. That's quite a record isn't it? Walter R. Shaw : That's a good record. Hon . Daniel J. MacDonald : That's right. This represents an increase in the percentage of first grade oveT the previous year of .27%. Our cheese quality decreased by percentage of first grade compared to the previous year. This could be attributed to a very substantial increase in the volume of milk at the cheese plants and too slow in active cultures. During the year there were 2,335,000 lbs. of cheese graded, 94% being First Grade, 10.92% Second Grade, 1.88% Third Grade and .26% below Third Grade. This, I feel, is a commendable record to our producers and our processing plants. On March 27, 1967, the Canadian Dairy Commission announced their Dairy Support Pro¬ gram for the year April 1, 1967 to March 31st, 1968, this program is still in being. A. subsidy payment to producers of $1.21 per 100 lbs. This is a sizable amount of money, Mr. Speaker . I will give you the figures on it shortly. Of manufacturing milk based on 3.5% butterfat, on this figure a deduction was made for export. This leaves a net payment to producers of $1.10 per hundred weight for milk or 31.42 cents per pound for butter fat. A further change in the policy was the establish¬ ment of eligibility quotas for subsidy payments, a quota allotted to each producer —183—