BUTTER SUPPLIES

Nelson Evening Mail, Volume LIV, Issue LIV, 14 June 1920, Page 4

BUTTER SUPPLIES

PREMIER’S REPLY TO CRITICISM (United Press Association) WELLINGTON, This Day Mr Massey, replying to Mr Good fellow’s criticism of the Government’s action in retaining 200,000 boxes- of # butter in the Dominion as a means, 'of competing against the new sea* son’s make and so keeping the price below the cost of production, states that 50,000 boxes of this butter had been sold to the Imperial authorities and will bo shipped away. Last season, says Mr Massey, the usual cus-. Tom was followed, and it was thought sufficient had been retained in the country for our own requirements, but as a matter of fact the quantity kept was exhausted some considerable time before the end of the winter, and as a consequence in late winter and early spring there was something approaching a butter famine. This season the Department have kept back more than the usual quantity so as to avoid a similar difficulty to that which was experienced last year. But where Mr Goodfellow goes wrong is in saying the Government intended tp appropriate the butter in'store now’ .for the purpose of supplying the local market in competition with the new season’s make. That is not what is intended at all. Mr .Goodfellow mentions that the prices in England are very much- higher than the prices in New Zealand. If his state*ment is correct and any considerable balance of the present season’s butter remains at the end of the winter that balance will probably be used for the purpose of supplying the local market, but the effect of doing so will, according' to Mr Goodfellow himself, allow next- season’s make to bo placed in a betted market at a higher price. ‘ I am surprised at ajkeen. business nian missing this very important point. After assuring the producers that the Government had done everything in its power to promote their interests right through the war period Mr Massey, continues: “What is being done at present so far as the local market is concerned is this: I'or a considerable time past the price of Gutter to local consumers has been kept at a reasonable level by means of ■ the ' equalisation fund voted bv i Parliament. The same procedure will | continue now so fat, as butter produced during the currency of the existing contracts with the Imperial Government is concerned. This contract terminates on July 31st and as the season’s butter making operations, is now ended the quantities available tor local consumption can be quite accurately determined, and these quantities' will bo sufficient, to supply local needs* fer some time to come. Ine price to the producer will be the same as ruled throughout the season, but owing to additional charges winch have to be met the price at which butter will be issued to distributors has had to be increased from Is od a lb ex factory door to Is sid ex store or f.o.b. coastal steamer, but the producer receives, with the Government subsidy. Is 7kl.