BUTTER PRICES

Evening Post, Volume C, Issue 50, 27 August 1920, Page 8

BUTTER PRICES

THE LOCAL INCREASE

The reported prospective conclusion of negotiations with respect to the sale of the exportable surplus of butter was the subject of a question asked by Mr. G. Mitchell (Wellington South) of the Prime Minister in the House- of Representatives yesterday. He wished to know if the price wa6 to be 2803 as suggested, and, if so, what was to be the, action of the Government with respect to local supplies. He said'he had received a letter stating that one factory had informed a business man that it would have no butter for the local market this season. The Prime Minister said that he was not in the position to say what would be the action of the Government -with, respect" to the increase in the expoTt price that was bound to be made. Negotiations were still proceeding between the Imperial Government and the producers ; but he believed the Imperial Government would be the purchaser. As soon as he knew definitely what would be done as between the producers and the Imperial Government, he would be able to say what would be the action of the Government, and, if members desired, as Mr. Mitchell stated. l\e would give the House the opportunity of discussing the qucfition. Now Zealand had sufficient supplies in store to last until Ist October, he believed, owing to.the quantity that was held/for winter requirements. Mr. Witty : "Will the price be raised on that in store?" Mr. Massey : "I should not think so. W-e do not want to make any profit oii; it." - . Mr. Mitchell asked if the price would be 2s 9d as suggested, j Mr. Mnssey,: "I can hardly express an opinion on that point except to say that I do not think that the price will go to 2s 9d." Speaking with regard to the future price of butter later in the evening, Mr. S. G. Smith (Taranaki) said there were .some 200 buttar factories in the Taranaki Province. ' If the producers were to be treated unfairly they would have this position : that the factories would not make butter, but cheese. If, as Sir Thomas Mackenzie had stated, the price in England was to go to 4s 6d a Ib, it was manifestly unfair to compel the price to be kept down to Is 9d. ' There seemed to be an' argument that because a commodity was essential, the price should be fixed'by some person-.who did not help in produoing it. He hoped the price would not be fixed so! as to compel the producer to accept less than the world's market price. . "