DAIRYING INDUSTRY.

Hawera & Normanby Star, Volume LXXII, Issue LXXII, 12 October 1916, Page 4

DAIRYING INDUSTRY.

BUTTER AND CHEESE PRICES.

BOARD OF TRADE RECOMMENDATIONS uPPOSED.

BY CABLB—PRESS ASSOCIATION— rnuvKKtB*

WELLINGTON, Oct. 11. - Representatives of dairy companeis (after conference) adopted resolutions expressing their entire disapproval c-f the proposal of the Board ot Trade to levy a tax on all butter-fat, on the ground that the levy was economically unsound, a class tax, and an interference with small farmers who at- present are bearing enormously increased cost of production consequent on the war. A local increase in the price of butter was not only justified but necessary in the general interests of the industry owing to the fact that butter for export to-day was worth Is 6|d to Is 7^ d f.0.b., the local .equivalent of which, after meeting distributing and marketing charges, wa« Is 8d per lb wholesaleand Is lOd retail, as compared with a charge to consumers in Britain of 2s per lb. If any limitation in price wa* necessary, the conference suggested tho cost should be a charge against the consolidated revenue, a precedent for which, was the proceeding by the Imperial Government with respect to increased wag 23 for railway workers of Great Britain. A committee of cheese and but- [ t?r representatives, comprising Messrs v. _oiton, W. D. Powdrell, Pacey, J. Jift.x, and Fisher was set up io watch tl o interests of producers. The Board of Trade formulated a j ooly to the representatives of the dairy industry on the price of butter, which will be forwarded to the Government. The Board .recommends that the retail price should not be allowed to rise indefinitely, but should be in the vicinity of Is 7d per lb throughout New Zealand, for the following reasons:—The price in 1915 was Is sd, which was high in comparison with "the previous summer .^ An increase of 2d per lb -waa ample to compensate for the increased cost .of production. If 1& ?d was exceeded, difficulties would arise in connection with the domestic milk supply, which was not desirable on the grounds of public health. The price fixed in\he Commonwealth was Is 6d, and if outlet were retailed at Is 7d the grocers would be satisfied with the present distributing of cargoes. Medical men informed the Board that butter was an absolute necessity in the homes. A number of children were not receiving the quantity necessary for their proper physical development. Assuming that the' Government were prepared to take action to regulate the price of the local market, the Boprd '-ecommends the prohibition of ex«o~t of butter and cheese except under ;icense, and the fixing- of the wholesale price. from time to time at th© factory, th.c distributing charges not to exceed thpse ruling on August 1, 1914. Should this scheme be ad9pted. the Board recommends the removal of all other restrictions on export 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 butter-fat would be diverted to the cheese factories.

Referring to the suggested tax, the Dominion says: "The Government has noftpowpr to levy and collect such a tax without the consent of those who are to pay it. Nor can the Government fix the price of butter for sale here or elsewhere. All it can do f is to prohibit export until the producers come to terms. . . It is understood, however, that the decision of the Government that the price of butter for locaT consumption , must not be raised is final and inflexible. Whether it will be reduced. is ianother matter."