WILL THE PATERSON PLAN GO?

Evening Post, Volume CVII, Issue 74, 1 April 1929, Page 12

WILL THE PATERSON PLAN GO?

Most dairymen of Victoria will be surprised to hear that their industry is m a deplorable condition, as was stated at a meeting convened by the \ ictonan Dairymen's Association, remarks the Australasian." Production of butter this season has been exceptionally large, and prices have been unusually good. Irom the beginning of the year prices have been held at 4%d a 1b above export parity by means of the Paterson plan bounty. Urbanisation was said to be the only remedy, and organisation was interpreted tojmean legislation setting up a compulsory system of marketing, such as prevails m Queensland. It has been stated repeatedly at such meetings that marketing Acts would not affect the Paterson plan. Such a statement is open to question, arid many leading members of the industry have not hesitated to say that compulsory marketin" would sound the knell of the Paterson plan. The Paterson plan is a voluntary measure, which now brings a gain ot about £3,000,000 in a normal season to dairy farmers. Factory managers and owners might well consider that if they were compelled to subscribe to such a measure as the Queensland Marketing Act they need no longer support a voluntary measure. No matter how slight the risk, dairymen would be foolhardy to jeopardise the Paterson plan, which has meant so much to them. The real reason for the proposed marketing Acts lies in the statement made by Mr. J. M'Robert, of Queensland. He wished to avoid interstate competition. The price set up by tlie Queensland Butter Board is usually so high that it induces buyers to import butter' from the Southern States. The only way in which such competition could be avoided would be for all States to maintain the price of butter at an artificial level, but if marketing Acts were obtained and prices were thus raised, the consumption of butter would be affected seriously, as is evident from the fact that consumption in Queensland has decreased. Smaller consumption of butter in Australia would mean that larger quantities would be exported, and this 'would "upset' the balance of the Paterson plan if it were still in operation. Levies would be increased or bounties would be reduced, which would eventually involve dairymen in loss. _ Ihe Paterson plan is cheaply and efficiently managed, but if marketing were established in all States with a Federal Board to control inter-State business a heavy burden would be laid on dairy farmers, who are already paying large sums to the bodies governing the industry.