THE DAIRY INDUSTRY.

Auckland Star, Volume LIX, Issue 78, 2 April 1928, Page 4

THE DAIRY INDUSTRY.

AUSTRALIAN DUTY. MR. PRATTEN'S DEFENCE. Trior to his departure for Sydney the Commonwealth Minister of Trade and Commerce, the Hon. H. E. Pratten, gave an explanation of the conditions under which his Government had decided to increase tho duty on New Zealand butter to Gd per lb. After outlining the object and the working of the Paterson scheme lie said that the benefit it was to confer upon Australian producers had been defeated by the importation of New Zealand butter. He estimated the consequent lotus to Australian dairy farmers at f 100,000.

"To meet the position," he said, "The Australian butter industry raised the export bonus from 3d to 4d per lb and this had the result of increasing the domestic price 4d per lb over London parity. This increase was found unworkable, and .'sd per lb was reverted to, but the late may be made 4d when the duty of (id becomes operative.

''With the duty of (5d per lb in operation and an export bounty of 4d per lb, the relative position as regards the competition or New Zealand butter becomes identical with that which existed when the rate ot 2d per lb and 110 export bonus was being paid. If there is a genuine shortage in Australia New Zealand butter will be imported to supply it, just as happened bet ore the Paterson plan was introduced. Just as New Zealand ' butter before that plan operated could not be imported during the Australian exporting season, so with the plan in operation and the duty of 6d on New Zealand butter will not be imported during that season." I' inally, Air. Pratten said:—"l ask the dairy tanners of New Zealand to closely examine the position. We in Australia want to give our hirmors some benefit out of the Home market, so that the consumers ot butter who are largely benefited by Arbitration Court awards shall give a little help to the dairy industry. The Paterson plan i.s designed to improve farconditions of the Australian dairy farmer and Australian butter-makers, and the cream suppliers pay a voluntary levy to improve their net returns. This is being defeated by the dealer in New Zealand butter, who scoops the profit to the extent that his importations prevent the Paterson plan from functioning in the manner intended.

"I he producers of butter in New Zealand are getting no bijrger net return from the export of their butter in Britain, Canada or any other place. Whatever profit is being made is, I hazard the opinion, j;oinjr into the pockets of dealers, jobbers, exporters and importers, and the dairy farmers of New Zealand are being used to prevent their brethren in Australia netting higher prices in their local market, to which they are entitled by reason of increasing costs of production."