PRICE STABILISATION

Evening Post, Volume CV, Issue 118, 21 May 1928, Page 12

PRICE STABILISATION

BOUNTY-FED BUTTER A circular has been issued by the Australian Stabilisation Committee giving particulars of the results of the butter stabilisation plan for the year ended 31st December. It is stated that the plan operated smoothly. It provides for the payment o£ a bounty of 3d a lb on all butter exported from Australia to overseas countries^ the effect being to increase the selling price of butter for Australian consumption by 3d a lb. Funds for the purpose were raised by a levy of l*/£d a lb imposed on all butter manufactured. Tha sum received from the levy during the year was in excess of the bounty paid, and the surplus rebated to manufacturers was at the rate of 7-10 d a lb of the total production. The committee states that the results of the second year's operations, as in the first year, exceeded expectations. The manufacturers of butter in the live States concerned —Queensland, i\ew South Wales, Victoria, South Australia, and Tasmania,— responded unanimously by paying the'Jevy. That enabled the committee to carry on the plan and make bounty payments promptly. The balance brought forward from 1926 was £33.701. Total receipts from the levy were £ 1,441,054. Disbursements included £1,(14(5.941 paid in bountry of 3d a lb for butter exported and £417,087 rebate of 7-10 d paid to manufacturers. A balance of £13,159 was retained to pay bountry for butter exported subsequent to 31st December, on which a levy had been paid. The. committee ..states that the main objective of the plan .was to maintain the Australian price of butter at 3d a lb above London parity. During 1927, as in 1926, the monetary gain to farmers in Australia was more.than £2.000,000, making a totill benefit to them of more than £4,000,----000. To achieve such a, result the expenses for 1927 amounted to only £SS6O. As the sum of £ 11,243 was received as interest on money placed on fixed deposit the cost of administration to producers could lie regarded as nil. The committee, ■in refunding the surplus levy to manufacturers, directs ■attention to the fact that as the money came originally from the suppliers, it should be refunded whence it came. In New Zealand the price of butter for the local market is based on its f.o.b. or export value.