THE BUTTER SUBSIDY

Evening Post, Volume CI, Issue 113, 13 May 1921, Page 2

THE BUTTER SUBSIDY

10 THE F,DII0», Sir,—Some little time, ago you were good enough to publish my letter regarding) price of butter, and it was replied to semi-ofEcially. My previous letter asked why a subsidy of 2d por lb was agreed upon by the Government, payable to butter factori-is for winter butter, especially in view of the financial tightness then and now existing, and for which reason -the Government intend to curtail building so as to provide money to meet unemployment. I say again that this subsidy wants looking into and some sound reason given why it was granted, for this I money could be used to assist the unemployed and keep the building going ako; if the Government cease building they must oreate more unemployment. ' Taking the question from the beginning, tho butter factories wanted a free market, and it was the duly of the Government to let them have it, but at tho same time let the public have the benefit of. a free market and a cheaper price for butter if possible. Since writing last, the butter market in England has slumped so much that' to-day Now Zealand butter is only worth Is B|d per lb in London, with a strong downward tendency, so that possibly by the end of. the week Is 6d per lb will be the price, or, in other words, allowing for charges to London, New Zealand butter in Wellington to-day is worth, roughly, Is 6d per lb. The Imperial Government had in store at _ the end of April over 132,000 boxes of butter, for which they paid 2s 6d per lb, and, in view of the,slump in England, would, I feel sure, be pleased to quit some of this butter to merchants for distribution in New Zealand at a muoh lower price than Is ll£d, which they have to pay to-day to butter factories, subsidised by 2d per lb from tho Government, This butter could in turn be sold by the grocers /to the : public somewhere in tho region'of Is- lid to 2s per lb, which >vould be a great help to parents with families to keep. I dp not know what the' amount of this butter subsidy 13 going to oost the Government, but I should say it is fairly large, and, although not wasted, it could have been used to better advantage, especially in view of a Cabinet Minister's remarks that no^ money was available for urgent, works. The Government would not have inflicted any hardship on the butter factories, for they wanted a free market, but the Government has inflicted a very great hardship on the public in subsidising tho factories at the rate of 2d per lb, thereby keeping ur> the price of butter to 2s 3d per lb, with no hope of it falling until next season, which is August or September.—l am, etc., WORKER. 10th May.