FIXED PRICE OF BUTTER.

Hawke's Bay Tribune, Volume VI, Issue 260, 19 October 1916, Page 2

FIXED PRICE OF BUTTER.

PROTEST against levy. Woodville, Oct. 18. A meeting of representatives of the Co-operative dairy companies, operating in the Woodville district, was held in the Borough Chambers this afternoon to discuss the imposition of a 2d per lb tax on butter fat. It was unanimously resolved: That we protest emphatically against cheese producers being called upon to subsidise butter producers as proposed bv the Board of Trade, and that we‘believe that the only equitable method of protecting consumers and producers of the Dominion is by an export duty being imposed on all exports.”

VALIDITY OF REGULATIONS CHALLENGED. Wellington, Oct. 18. In connection with the regulations which have been issued by the Government fixing the maximum price of butter and providing for the issue of licenses to those factories which export either butter or cheese it is understood that steps are being taken to settle the question which has been raised of the validity of the Order-in-Council making these regulations. In this connection the following circular has been issued to dairy companies by the Producers’ Committee“We were appointed to represent the producers’ interest in connection with the Board of Trade proposal to regulate the price of butter upon the local market, such proposal involves an assessment over the whole of the butter fat supplied to the butter and cheese factories within the Dominion A copy of the Gazette notice and memo setting forth the proposed means of giving effect to the arrangement is being posted to-day to each dairy company by Mr. Triggs. who is the licensing authority under the proclamation. These will fully explain the position. After considering the proposition and its bearing upon several and varying interests represented, and after taking legal opinion, we have decided to contest the validity of the Order-in-Council. Meanwhile the provisions of the proclamation are in force and we advise dairy companies forthwith to make application for their licenses, otherwise | serious trouble and delay may arise; in connection with shipments per steamers due to leave shortly. We understand that if the proclamation is found to be ultra vires the licenses will become in-operative. We also recommend dairy companies which do business upon the local market to sell their butter at a rate to retailers corresponding with not more than 1/7 per lb to consumers and to -maintain supplies for their usual business during the short time before the decision will likely be made. Unless this is done the position will be seriously complicated. If the proclamation is sustained, w’e shall in the interests of the producers deem it our duty to assist the authorities in making the scheme as complete and satisfactory as possible.” (Signed).—Arthur Morton, Jacob Mark, H. E. Pace}', TV. Fisher. W. D. Powdrell and C. P. Agar-