PRICE OF BUTTER.

Auckland Star, Volume XLVII, Issue 243, 11 October 1916, Page 6

PRICE OF BUTTER.

POSITION OF PBODITCBBS. BOARD OF TRADE SCHEME REJECTED. (Br Telegraph.—Press Association.) . WELLTNGTOiN, this day. Representatives of dairy companies, after a conference, adopted resolutions expressing entire disapproval of Board of Trade proposal to ley a tax on all butter-fat, on the ground fl»** the levy was economically unsound, a class tax, and interference with the email fanners, who are at present beariag- enormously increased cost of production «oneequent on the war. The local increase, it was claimed, was not only justified, but necessary in the general interests of the industry, owing to the fact thet butter for export to-day is ■ worth 1/6| to l/7i f.0.b., the local eqnivaient of which, after meeting distributing- and marketing charges, is 1/8 lb wholesale and 1/10 retail, a3 compared with a charge to consumers in Britain of 2/ Ib. If any limitation of price were deemed necessary, it was suggested {hat the cost should be a charge against the Consolidated Revenue, a precedent for which is provided by the Imperial Government with respect to increased wages of railway workers in Great Britain. The producers set up a committee of cheese and butter representatives, comprising Messrs Morton, Powdrell, Pacey, Mars, Fisher, and Agar, to watch the interests of producers. a EXPLANATION OF THE POSITION. A gentleman well acquainted with tine dairy industry, when seen regarding, the position at the present time, eaid that although there was nothing very clear to outsiders as to what actually transpired at the'first conference between the Board of Trade and representatives of dairying interests, it must be concluded that an agreement between the parties was practically arrived *t, or the Government would not have taken the responsibility of prohibiting a further increase of local prices, "which under ordinary trading conditions was fully justified to the extent of twopence per Ib. The whole difficulty at ywterday's conference seems to have arisen througn the Board of Trade attempting to overdo matters. Bad they been satisfied to allow the present ruling price locally to stand, instead of attempting a. reduction, I believe an agreement would have been, arrived at up to a point of only arranging details of the scheme they had in view. It is difficult to see how the Government will conciliate the opposing interests. It is suggested they will force matters 'with producers even to the extent of an absolute prohibition of export. The responsibility of euca drastic action rests, of course, with Cabinet, but they must know" that a deadlock for any length of time would mean almost ruin to.many small farmers and would, of course, be detrimental to the Dominion as a whole. The'only alternative would be for the Board of Trade to request those factories now conducting the local trade to continue selling to their private customers, and at the same time permit those so fortunate as not to (have a local 'business to export to London. That, of course, would manifestly' be very-hard on 'the factories supplying the. local market, and it would seem the Government iniist take come measure to compensate those who accept a. less price for butter to keep the local market supplied. To absolutely prohibit export of batter •would simply mean the ruin of many small farmers. • ■ -'