BUTTER CONTRACT

Hokitika Guardian, 9 February 1935, Page 2

BUTTER CONTRACT

DEFEATING STABILISATION

HAMILTON, February 7

Ail intimation that the Government would in future declare null and void any contracts made by dairy companies likely to upset the stabilisation scheme of the local butter market was given by the Hon. C. E. Macmillan, Minister of Agriculture, in the course of an address on dairy legislation at Raglan last evening.

“"We found in the course of our investigations that an effort was being made to sidetrack the benefits which might accrue from the stabilisation of the local market by the Sinclair plan.” said the Minister. “We have every reason to. believe that a contract has been entered into for 21 years which entitles one firm of chain grocers in New Zealand to purchase its butter requirements at id per lb less tlia-ii the price obtainable at any particular factory. One large 'group of factories was prepared to do this. “This would have destroyed advantages from any system of stabilisation. Mr 'Sinclair, who has Worked very bard for mis scheme, knows that there is a big group of factories in the Manawntu and Wairarapa which does a certain amount of stabilisation and it has been up against the same difficulty.

“The scheme has been practically destroyed and the Government considers that a contract of the description mentioned is unfair and should never have been made. If there are any more of these contracts, which are against the whole industry, the Government will declare them null and void.”