BUTTER PRICES

Evening Star, Issue 18048, 16 August 1922, Page 5

BUTTER PRICES

SERIOUS ALLEGATIONS. MANIPULATION OP SHIPMENTS SUGGESTED. [From Oor Parliamentary Reporter.] WELLINGTON. August 15. “ A gentleman in Sydney ” is suspected by the member for Otaki of being the author of tho rapid fluctuations in butter prices which have caused producers much perturbation this season. Mr Field made this allegation when commenting on a document -presented to the House to-day by the Minister of Agriculture containing details of the negotiations which led to last season’s arrangement for fixing butter prices in Now Zealand. Mr Lysnar had greeted the report with a strong plea that, tho Government should appoint a trade commissioner or provide some other means of improved conditions in London so as to assist He regarded the data sent by tho High Commissioner as inadequate. It was also to have a good live representative in Anieiica. particularly in view of the opportunity of disposing of our dairy produce there. _ Mr Field, in supporting the suggestions, considered that something better was -required to bo done than- was done oy the High Commissioner’s officers. _ In London our interests were not sufficiently caied for. Ho had been informed that a highly unsatisfactory position existed in icgard to New Zealand’s butter shipments to England. One man in Sydney was able to dictate to the shipping companies what butter they should ship from New Zealand and when they should take it. He ordered one steamer to ship, and when that single cargo arrived there was a shortage. Then ho would order four ships, and down went London prices. Possibly the Prime Minister would know to whom lie was Tenuring. . . . Tho Hon. Mr Massey: I think it is a gentleman not unknown in hew /eaiand. Mr Field; Yes; and I am told that there are people in New Zealand who are also in tho know', and they arc making large profits. The- market is borne down by over-supplv in the Old Country, and then supplies get short, and these gentlemen sell. What \v-s w'ant is an even iun of prices, instead of which they go zigzaging up and l down, enabling these gentlemen to make huge sums at the expense of the producers. It i-s a- scandalous state of things, and I hope t-hat_ the Government will ascertain tho -position and endeavor to prevent its continuance. Mr Hockly advocated a butter pool for New - Zealand. Ho suggested that the reason for opposition to the pooling proposal from the South Island was due to the existence of so many proprietary companies. These interests ought to bo ignored, because co-operation was the sheetanchor of tho dairy producers. Mr Massey, during the course of the subsequent discussion, stated that he had not had the same opportunity of inquiring into tho disposal of_ our dairy produce in England as lie had in connection with the disposal of wool. However, ho had been credibly informed in London that the market for dairy produce was fixed by_ a small committee of Tooley street, which was the headquarters of the dairy produce buyers, similarly as Smithfield was with moat. Every morning this sub-committee (generally three men) met and fixed tho price. These particulars were posted on tho door, and the price mentioned became the current price until further notice. It was an exceedingly difficult problem, and at the present moment lie was not prepared to make any suggestion to deal with it; but until the dairy producers wore able to do something the situation would not ho satisfactory. As far as he could learn, there was never much competition with Tooley street, but ho believed in distributing consignments among other ports, such as Hull and Manchester.

Mr Lysnar: There is no other way out of it.

Mr Massey: Yes, 1 know it has to be done.

Mr Jones, chairman of the Meat Control Board, described what steps that organisation was taking to improve the marketing conditions in London, adding that the hoard would endeavor to co-operate with butter producers to render them assistance also.

Replying to a suggestion to appoint a trado commissioner in London, the Hon. W. Nosworthy emphasised that it was very easy to work with tho High Commissioner's office. It was no use having divided control. The Hairy Association and tho Co-operative Association had a representative in London, and if these two wore not able to acquaint their members with reliable advice as to the market it would bo much mere difficult for trade commissioners. As for the suggested dairy pool, it was open for the dairy farmers to fall into lino with the meat producers, and, once having settled their differences, to work in coniunction with the machinery already in motion for the disposal of our meat. The Minister of Agriculture added that he knew the man to whom Mr Field had alluded, and ho was making inquiries into what was being done underground and above ground. It was not a question that could ho dealt with in a moment.