THE BUTTER-FAT LEVY.

New Zealand Herald, Volume LIV, Issue 16584, 6 July 1917, Page 6

THE BUTTER-FAT LEVY.

PRIME MINISTER'S PROMISE. EFFORT TO SOLVE DIFFICULTY [bt telegraph.—special COBRESPpJJDgjrT.I WELLINGTON, Thursday. A .large,, deputation -01 . country and suburban mcmbors of Parliament Availed on -the Prime ■. Minister and the - Hon, W. D. S. MacDonaid this morning to ask for the;.; abolition of the ■■butter-fat levy. The deputation, was- introduced by Mr. : G. 'J. Anderson (Mataura), who : stated that they wished to make it quite clear that thoy did not object -la the Government trying to keep down the. price of food, but it protested against : this ' A levy which they had loaded upon oho section of the community. :, The : tax meant an average of about 15s a cow. -To put a tax on a hardWorking section of the community such as the dairy farmers was wrong in principle. If,: the principle was right, .; then the Government had not followed it to its logical conclusion, , because thore was nc tax on the dried milk factories. ■• Mr. W. T. Jennings : (Taumaruuui) said the tax pressed very l unduly, especially on:men,who had gone into the outlying districts -v : •-'■ * Country Member's Views. , Mr. C.- A. Wilkinson (Egmont) said the tax wi.B not a tax by Parliament, but by an Ordcr-in-Council, which was (liispiv stitutional. It had not been 'used to r on rich ; the ■ treasury, but' individuals. A further grievance was that, they had beer told they would get the same price, foi cheese elsewhere, arid he thought that the difference should bo made up. ; Mr.:,Massey: That -matter, is being looked into. ;.' . Mr. J. T. M. Hornsby (Wairarapa) said the wealthy companies were not'taxed in this/way. "As to the refund he was a bit dubious about that. Members of the Deputation: Oh, no. ■Mr. Hornsby added that his constituent* did not object 'to r tho' amount, but they did not believe in the way it was being levied. • Mr. G. V.. Pearco (Patea) suggested that the money should be refunded. ' Mr., MacDonaid, in reply, said it was no pleasure for the Government'to restrict any of the industries. In October of last year, when '■ the matter was brought forcibly before the Board of Trade, buttei was then, at the zenith of the season';'selling retail at Is 8d per pound, or 4d higher than at any similar period of the year. Tho amount of Id per pound was allowed for distribution from the factory to the retailor, and 2d for cutting up and delivery by the retailers. The retailers asked ' to' bo allowed to increase the price to Is lid. • Jm Wilkinson: Not the producers. Producers and Retailers. "" Mr. Mac Donald: Yes. Because the producers put the price sojiigh that, they , could not sell at less than Is lid, and it would not have stopped there. It would probably have gone -up" to 2s 6d 'right in the height of the season. There was nothing left for the Board of Trade and thV Government to do but to meet the case in tho best w*y possible, and they had decided on 1 a levy of 3d a pound on the whole of the butter-fat.' An'equalisation fund was also established, so that the suppliers. of the local'.markets should obtain tho same price as exporters. The levy paid amounted to £258,000, and there were some 118 factories 'that had not paid any levy at all. Tho amount promised was-£17,444. 'It would "not be' possible ot go into tho whole of the accounts until July 3C. About £60,000 had been paid out, and when the .whole of the accounts were made- out the money would be paid. As ! to ruining the small farmer, after allowing over a fraction of id per pound on butter, the increased price W- a ? *?*<! 103 lQd per ton over the 1913-14 pre-war prices. -.As far' as cheese was' concerned, after. allowing for a fraction over id a pound, there was an increase of £18 lis per ton over pre-war/prices. An attempt had'simplv.been made to equalise prices until tho .session commenced. There had been no attempt to do an injustice to dairy farmers', i' 1 ' -"■.'"" ••*■ ,"' v A Member: It is working out that way. : ; "It is not working out that'way,' said the Minister. He pointed out that as far as meat was concerned the price was 100 to 150. per cent, less than was obtained in ' London, whereas the difference between the London butter prices and local prices was only .6, per cent; 'h- ■ •/ New Season's Prospects. The Prime. Minister said that although he' was. away when the arrangement' was ■ made, : he: took his share Of- the "responsibility. ';': Ho could only say that the Government would attempt' to solve the difficulty. It was the duty of 'the Government to keep down tho cost of living, and he would say at once that the Government did not intend to Injure the producers. Retails'"would" come before 'the Government in ; the very near future, and although he might have his own ideas "on the subject, ). Cabinet came* first, and '-'he would have to take Cabinet into bis, .confidence. '.With regard to shjpping, he had, * during the past few days, been in communication with the Home authorities in an 'endeavour to bring about an improvement! and all he could ' say at the moment ■' was that sufficient butted would be taken away from the.freezing stores, especially in the North Island, to enable (lie 'but factories to resume "butter manufacture on ■'. August .1. ~' .•>; "" -. < ■ i '.;"-iA Member : H What about cheese! Mr. l ' Massey- replied that the position with regard'to cheese' waa serous, but h* '• did rigtfthink' it would be'such as to ■ prevent further production. M *'' x ' Mr. J. A. Young' (Waikato):- Will you make a .special" effort to relieve Auck land There are 174,000 cases of butter ; in 'storo there, ; and 10,000. people in the i district depending on butter. Is "'there i any, prospect of an increase in cold storw ago?. '■ , :,■: • / * .Mr. Massey said there was "riot at pre- ■ sent. -Ho added that tlje ■whole matter : would go before 'Cabinet at "the earliest i possible- moment.' '"* '""" *.•"'' * d, " , "■ t ' i .I •' ■