Local Butter Prices

Dominion, Volume 27, Issue 146, 17 March 1934, Page 9

Local Butter Prices

Sir,—Many of your readers will have been surprised to learn that the dairy conference in session lias proposed that the Government subsidise the industry. In other words, that the people "collectively” be taxed to assist a "section” of the community. While agreeing that the dairymen are now placed in an unfortunate position owing to the fall in the retail prices of their products on the Home markets, I am not unmindful of the fact that for some years from 1913 dairymen enjoyed really wonderful times. I understand, despite a preferential tariff in favour of our butter sold on the Home market, together with 25 per cent, exchange, 5 per cent, sales tax, freight, etc., our dairymen are exporting more butter than ever before. Expressed differently, the increased production together with the exchange, sales tax, freight, etc., means, in effect, that our people, i.e. the local consumers, are already called upon to pay approximately 50 per cent, to 60 per cent, above its true market value. Now we are astounded to learn that in addition to all these burdens, the delegatee have proposed that subsidies be granted them by the Government I

I have read the report of to-day’s conference as appearing in “The Dominion,” and what strikes me most forcefully is that there is no mention of the fact that in many instances dairymen have bought land at prices in excess of its real economic value, based upon the value returnable from production, its only true value. Dairymen paying up to £2OO per acre for land worth, say, £5O, now seek to make their fellow men (including the unemployed) pay for their mistake It is quite obvious to the man in the street that the real trouble besetting onr dairymen is due to their buying land in excess of its productive value, and in-stead-of asking the taxpayer to pay for his mistakes, he should, failing help from the various mortgagees (in some cases five, each expecting interest at from 5 per cent, to 8 per cent., based upon land changing hands at a price 75 per cent, in excess of its real value), agree with their fellow dairymen in serving notice upon the moneylenders requesting them to either reduce their mortgages or to accept their notice to quit. Evidently our dairymen are prepared to “sting” our people rather than place an ultimatum before those who are directly responsible for their present position? —I am. etc., ENGLISHMAN Palmerston North, March 15.