THE PRICE OF BUTTER.

Gisborne Times, Volume XLVII, Issue 4368, 12 October 1916, Page 2

THE PRICE OF BUTTER.

HOARD OF TRADE'S PROPOSALS. REJECTED BY THE PRODUCERS. (Press Association Telegram.) WELLINGTON, Oct. 11. A conference between the Board of Trade and representatives of the dairy industry was hi eld. this week, the Hon. W. D. S. MacDonald presiding, to consider proposals for the governance of the price of butter on the local market. The Board of Trade submitted proposals affirming that it was undesirable that the price of butter be raised, but suggesting that a reasonable price bo fixed, the factories supplying the local market to be compensated for the disadvantage as against exporting factories by the imposition of a small charge on butter-fat supplied to all registered factories, the sum so raised to be disbursed pro rata amongst the factories supplying the local trade. After carefully revising the Board’s proposals, the representatives of the dairy companies resolved to express entire disapproval on the grounds:— (1) That the proposals are economically unsound. (2) A charge on butter-fat would be a class tax. (3) The proposals would be an* interference with small farmers, who are bearing an enormously increased cost in production and labor. They consider ail increase on the local market not only justified, but necessary in the interests of the industry, and if a limitation of price is necessary the cost of such limitation should be a charge against the Consolidated Revenue, precedent for whirli. is furnished by the Imperial Government in respect to the increased wages of railway workers in Great Britain. A committee, consisting of Messrs. Morton, Powdrell, Racy, Marx, Fisher, and Agar, was set up to watch the interests of the producers. HOARD OF TRADE’S REPLY(Press Association Telegram.) WELLINGTON, Oct. 11. The Board of Trade has formulated a reply to the representatives of dairy industry on the price of butter, which will be forwarded to the Governor. The Board recommends that the retail price should not he allowed to id.se indefinitely, but should be in the vicinity of Is 7d per pound throughout Now Zealand for the following reasons:

The price in October, 1314, was Is 3d, and in 191 o was lsjjri, these prices being high in comparison with Previous summers. The increase of 2d pe r pound was ample to compensate for the increased cost of production. ii Is 7d were exceeded difficulties would arise in connection with .the domestic milk supply, which were not desirable on the grounds of public health. The price fixed in the Commonwealth was

Is 6d, and if butter were retailed at Is 7d grocers would be satisfied with the present' distributing charges. .Medical men informed tTie Board, thatbutter was ah absolute necessity in liomos, and a number of children were not receiving the quantity necessary for tbeir proper physical developmentAssuming that the Government is prepared to take action to regulate the. price on the local market, the Board recommends the prohibition of the export of butter and oliec-so, except under license, the fixation of a maximum wholesale price from time t ( , time at the factory, and distributing charges not to exceed those ruling on Ist August, 1914. Should this scheme ho adopted, the Board recommends the removal of all other restrictio.is oil the export of butter. The .scheme would be fruitless if made to apply to butter only, as a threat has been constantly used > that the factories would manufacture cheese in place of butter, and: the butter fat would be diverted to cheese factories-