POSITION REVIEWED

Evening Post, Volume XCV, Issue 41, 16 February 1918, Page 8

POSITION REVIEWED

STATEMENT BY PRIME MINISTER

WILL NOT ALLOW INCREASE OR'

PRICES.

The Prime Minister to-day made a statement in which he reviewed the gen-, eral position in regard to the butter question. He. dealt with the situation so far as it affects the exporters and those who supply the local market. He also gave an assurance with respect to tho position of the consumers—the general public. ' '-•-.-

Mr. Massey said: "The people concerned in the butter industry might be divided into three sections; but leaving out the producers for the time being, those immediately concerned in the little difficulty which exists' at present are the •exporters and those who supply the local •market. The exporters have sold their butter to the Imperial Government for the current season—the amount to be taken by the Imperial Government no* to exceed 15,000 tons, unless at the option of the latter; and the price has been arranged. "Then there are the people who supply the local market—partly producers and partly middlemen. Up to the present, from the 'Commencement of the season, they have had rather the beet of the deal, to the extent of a halfpenny per pound. But there is a. provision in the arrangement with, the Imperial authorities that if there happens to he any profit over the price arranged as'between the Food Controller in Great Britain and the New Zealand Government, half that profit will come back to the producers in New Zealand. This, of course, is an uncertain quantity, and I am afraid with what has taken place ifc will not amount to much.' However, the • people who supply the local market claim that they are entitled to share in the profit. The exporters claim, on the other hand, that they are entitled to share in the profit which the local men have made up 10 (fate. .

"Representatives of the two sections have met, and have been- unable to agree. I offered to give effect to any arrange, ments which might be made in.that way. No .agreement has been come to. "The people who supply the local market now, say that they will withdraw on the 28th of this month.

"I am sorry they should take up such a position, but I want to make it perfectly clear," remarked Mr. Maasey in conclusion, "that the local market will not be left bare, and that the prices will be no higher than are being charged at •present."