THE BUTTER BONUS.

Auckland Star, Volume XLIX, Issue 142, 15 June 1918, Page 4

THE BUTTER BONUS.

A GOOD SUBPROBLEM OF LOCAL PRICES. CSy Telegraph.—Special to "Star.'T WELI—NGTOIJ. this day. The lively discussion which took place over the butter levy of the 1917 season will be remembered. Thi<; season the Government avoided the objectionable equalisation fund, but, as circumstances turn out, a serious position has arisen through failure to provide some similar arrangement to compensate providers of butter in the New Zealand market for the lower price obtained compared with what they could have realised by export. It was arranged that the Imperial Government should take the New Zealand butter output at 157/ per cwt _0.b., with a promise that profits realised in Engj land, after paying all expenses, would be divided equally between the Imperial Government and New Zealand producers. Australian butter was bought on the same terms. There has been considerable speculation regarding the amount of divisible profits, Mr. Massey being »t opinion that they would soon be trifling However, Australians had been officially informed that their share of profits or the deal amount to 19/ per cwt., and New Zealand exporters are expecting at the least an equal return.

i Though Mr. Guthrie, Minister i* Charge of Imperial Supplies, was unable to-night to state the exact position, ii appears that if New Zealand exporters got a similar profit to Australia, ouX factories, which forwarded 10,000 tons oi butter for New Zealand winter require<_ents at 157/ per cwt, will have lost nearly £20.000, unless their product i( included in the export arrangement. Ths Government will be faced with this d» mand or the alternative of paying similar compensation from the consolidated r» venue. It is being sincerely critic—ed for not making early arrangements in anticipation of this disparity in prices to the disadvantage of New Zealand suppliersProducers also wish to know why the amount of divisible profit was not indicated "long ago. seeing that all charges wore well known, and the retail Enzlis> ««~» wao fixed by rroclamation.