BUTTER PROBLEM

Evening Post, Volume XCV, Issue 42, 18 February 1918, Page 8

BUTTER PROBLEM

FACTORIES STATE THEIR CASE

•. Mr. James Prouse, chairman of the conference of directors of dairy factories supplying the Wellington market, which met at Palmerston North on Friday, explains why it is proposed to withdraw from the local business.'

In the course of an interview with a Post reporter, Mr. Prouse said the action was taken because . the representatives of factories supplying Wellington discovered that there had been no provision made by the Government for placing them on the same footing as concerns which exported their produce. There had been no provision made either for supplying the Wellington market during the winter months.

"When the original Imperial Government purchase contract was con-, sidered, the Government certainly promised (said Mr. Prouse) that so long as the local trade 'was undisturbed their interests would be protected. This was consistent with the resolution passed at the time and submittted to the Prime Minister. But when the Imperial- Government scheme was finalised, it was learned with surprise that no provision had been made for local interests in placing the same upon an equality with exporters with respect to the , returns to be received from their produce. The factories interested in the Wellington trade thereupon met and considered the whole position. Among themselves they were agreed'that they would be prepared to , fulfil local requirements, if they were to share in what was at that time considered to be a, probable benefit, accruing to the exporter to the British market.

"It is necessary for all factories supplying local markets to store butter some months in advance to protect winter trade; and if there was to be any participation in excess profit derived from the sales on the. British market, then .to that extent local suppliers would suffer loss' on account o£ storage charges incurred. '..'.■

"Wo asked for this equalisation of return as a matter of principle, as a matter. of right. , ■

"The Wellington district factories supplying, this market interviewed the Prime Minister^ and submitted proposals to him to secure equalisation, and he agreed to them, subject to the Dominion Butter Committee also agreeing. 'This is the body which was entrusted with the finalisation of the arrangements made for the Imperial purchase scheme. The committee met in Wellington, and I attended that conference by invitation on behalf of factories supplying the Wellington ' market. , Such factories were quite prepared to agree to that proposal, but the committee failed to come to any conclusion that was consistent with the, original arrangement. .' . "It is as well to'add that the Wellington local supplying factories never proposed to /the Trims Minister that there, should bo any increase in tho price of butter. ' . ' , ' "This is a fair statement of the position. The factories- supplying Wellington regret the Btand they are compelled to Jake, but they feel that there is no. option left to them but to act as proposed as trustees for their suppliers, if they are not to continue selling the produce at a probable disadvantage. They feel that . they submitted a reasonable scheme, but, apparently, it was not acceptable. Hence their .action."