BUTTER-FAT LEVY.

Kaipara and Waitemata Echo, 18 January 1917, Page 3

BUTTER-FAT LEVY.

THE DAIRY COMPANIES PROTEST.

AT a representative meeting of delegates from North Auckland dairy companies held at Whangarei to consider the matter of the levy on butter-fat, it was unanimously resolved: —

"That this conference of dairy j companies most emphatically protests against the interference with the price of butter in this Dominion, and against the imposition of the tax, recently levied. %d per lb of butter-fat, on the following grounds : (1) That it is a dangerous principle to take the earnings of one section of the community and pay the same to another section; (2) That the impost is economically unsound, in that it interferes with the law of supply and demand, which operates in such a way that when any commodity is in short supply prices rise, stimulating production and economising consumption, with the natural result that prices again recede; on the contrary, the limiting of the price and the butter-fat levy will tend to restrict production, which is not to be desired in a producing country; (3) That the price of butter is not excessive when the facts are taken into consideration that butter is a highly-concen-trated food, and requires skill in production and manufacture, and that the earnings of dairy farmers and their families do not compare with the earnings of those engaged in other callings ; (4) That many consumers of butter, having large incomes, are in a position to pay the increased price of butter ; That dairy farmers are already bearing their full share of the increased cost of production, as well as increased taxation and higher cost of living, the cost of materials used, and also of labour having risen considerably ; and, in spite of increased taxation, public works votes have been stopped, which is a great set-back to the North, as roads, etc., cannot be proceeded with and kept.in repair, which means a further tax on the dairy farmers to enable cream and milk to be taken to the factories ; (6) That until the Order in-Council is repealed, in view of the fact that it is almost impossible to obtain shipping space for butter and cheese, and the prospects for the near future seem even worse, the Government be asked to apportion sufficient space to allow export butter to leave New Zealand within a reasonable time and that this meeting deems it unfair, while unshipped produce is in store and oaanot be realised on, to require the payment of the levy should it be due, compelling companies to pay interest to Banks, not only on advances, but on the levy itself."

The conference further resolved —" That this conference has no objection to taxation levied for war purposes."