LOCAL BUTTER SUBSIDY

Press, Volume LXXXII, Issue 24988, 24 September 1946, Page 8

LOCAL BUTTER SUBSIDY

«MAJOR BLOW AT STABILISATION ”

COMMENT BY PRESIDENT OF LABOURERS’ FEDERATION

(P.A.) WELLINGTON, Sept. 23. “We see in this transfer a major blow struck at justice and a major blow struck at stabilisation,’’ said the president of the Labourers’ National Federation (Mr P. M. Butler), commenting on the statement by the chairman of the New Zealand Dairy .Board (Mr W. E. Hale) on the Government's decision to meet the 1946-47 local market stabilisation cost for butter and cheese from the Consolidated Fund. Mr Butler said the transaction cut away the anchor of stabilisation. It meant that taxes which could otherwise be reduced would be maintained and that other sections of the community would undoubtedly insist on adjustments. After commenting on the findings ©f the commission, Mr Butler said: “We do not blame the industry for accepting ‘the seasoning of justice.' They would be foolish to refuse the clemency of the Government. Our protest is concerned with the apparent disregard for the policy of stabilisation which characterises this transaction.

“It appears that where millions of pounds are concerned and where the people directly concerned can approach the Government the policy of stabilisation is very elastic; but in cases where a few shillings are concerned and where the people affected are workers appearing before the Court of Arbitration the policy of stabilisation is indeed very rigid,” added Mr Butler. “A beneficial policy of stabilisation cannot endure under such circumstances,” he added. “The workers have endorsed and reaffirmed the belief In a properly conducted policy of stabilisation. We know from bitter ex- - perience the cursed effects of inflation and deflation. We consider the blow at stabilisation to be the worst cut of all.”

Mr Butler said that the farmers Should state whether or not they wanted a guaranteed pridte. They were getting more than the statutory guaranteed price now, and this latest transaction gave them something in addition.