QUOTA ON EXPORTS

Dominion, Volume 27, Issue 187, 7 May 1934, Page 9

QUOTA ON EXPORTS

Butter From Australia NEW PLAN OPERATES Sydney, May 4. An export quota of 55 per cent, on any butter produced in Australia during the period May 3 to May 31 was declared yesterday. Under Federal legislation dealing witli the Equalisation Plan, inter-State trade in butter and cheese, except under license, is prohibited, and a license will be granted only subject to the condition that the licensee comply with the export quotas fixed by the Minister of Commerce. On the present export parity of 71/per cwt. no further increase is expected, since an increase would permit New Zealand butter to be imported here, even after payment of 6d. per pound duty, together with freight and insurance charges. No export quota has yet been declared for cheese. BASIC BUTTER PRICE Details of New Scheme Detail.s of the Commonwealth dairy produce equalisation scheme which came into operation last Tuesday are published in a brochure on the' stabilisation of the blitter market in New Zealand, issued last month by the secretary-manager of the To Awamutu Co-operative Dairy Company Ltd., Mr. A. J. Sinclair. On Marell 20 last there was incorporated tinder the Companies Act of New South Wales the Commonwealth Dairy Produce Equalisation Committee Limited. The principal objects of the committee are: (1) To secure to dairy companies equal terms for all dairy produce sold locally or overseas: (2) to fix a basic price at. which all butter sold “intraState, inter-State, or overseas” shall be I taken into account for the purpose of bringing about equality of returns: (3) to fix' or prescribe the respective amounts to be charged for the handling and transport of dairy produce, including the percentage allowance or discounts to be made to the purchaser. Not to Manufacture. The Equalisation Committee is not allowed to manufacture or dispose of dairy produce on its own behalf. This new organisation with legislative backing has a share capital of only £36. The capital ia divided into 36 £1 shares, as follow: Queensland. 8. A Group; New South Wales. 8. B Group; Victoria. 8. C Group: Tasmania. 4, D Group: South Australia, 4. E Group; West Australia. 4, F Group. The articles of association provide for not less than nine and not more than 18 directors, who must be members of the Dairy” Products JBoards in their respective States. Pending the setting up of these boards in some of the States, however. special arrangements are made for representation. First Directors. The constitution of the first directorate of the company is set out in the articles. The directors are 12 in number, comprising four directors each for the A. B, and C groups. By occupation ‘hey are classified as four dairy-farmers, one freeholder. one. president of the Primary Producers’ Union, two manufacturers, two company managers, one secretary and one solicitor. No member may hold mote than one share. “To participate in the benefits of the scheme,” writes Mr. Sinclair, “each dairy company requires to enter into an agreement with the Equalisation Committee, and the agreements do not become effective until they have been signed by companies representing 50 per cent, of its total quantity of dairy produce manufactured in the Commonwealth for the year ended June 30. 1933. “The agreement gives the committee power to make a levy on the dairy companies for (D administrative purposes; (2) the establishment of a reserve fund: and (3) the establishment of n Commonwealth fund for equalisation purposes. For the first two objects the levy cannot exceed in either case 2d. per cwt. of butter or Id. per cwt. of cheese. Consignments Overseas. "The committee is given power to make payments to or reclamations from dairy companies to ensure ’equal returns in respect of the dairy produce consigned overseas and/or sold on any market in each month.' Each dairy company is allotted a quota for its local market. W here this quota is exceeded, the surplus of the higher price is paid into the lonimojwealth Equalisation Fund, and this fund is utilised to make up the payments or dairy companies, who have not reached their local market quota.” . The basis used by the committee in tne process of'equalising payments to dairy companies is as follows: (a) For IntraState and inter-State sale. I *— at the price fixed by tlie committee; (b) tor Grea. Britain, the committee first takes the average of the prices ruling in London tor Australian shipments between the 7th and 14th tlav following the arrival of each shipment. With this as a basis, the -om mittee determines tlie general average price for all shipments of dairy proi.nc from each State during the month. “There are.” concludes Mr Sinclair, "also special provisions relating to butter held in store for local trnrlc. elwese reserved for maturing, sales under the heading of ships’ stores, etc. The agreement continues in force for three years, ittic each party covenants ‘that it shal. no* d< or permit or suffer to he done any. ac . deed or thing inconsistent or at vnnnnc with’ the ficreement.”