THE BUTTER-FAT LEVY.

New Zealand Herald, Volume LIV, Issue 16595, 19 July 1917, Page 4

THE BUTTER-FAT LEVY.

TERMINATION ANNOUNCED u » , y ACCOUNT CLOSED ON JUNE 30 [by TELEGRAPH—SPECIAL CORRESPONDED] '-\'' WELLINGTON, Wednesday. I 'jl The President of the Board of Trade ih ? Hon. W. D. S. Mac Donald, made reference to the butter-fat question in the House ** of Representatives to-night. He said that the levy account -was closed on June 30 ?* If all the factories in arrears paid what was due the Government -would have enough money without collecting any more to pay producers Is 7gd per lb xm to August on account of butter sold in New Zealand.

He defended the imposition of the butter-fat levy on the ground that there had been a distinct movement amon? butter producers to raise the price from Is 8d to Is lid per lb, and it would not have remained there. The Board of Trade therefore had decided to fix the price of butter and impose the levy because of the necessity to protect factories supplying the towns and cities. Since then there had been strong agitation against the levy, but he wag not certain that this pressure always came from the producers. No alternative had ever been suggested, by the farmers. All they had seemed to want was to get a maximum price irrespec* tive of public interests. When he had failed to come to an agreement with the producers' representatives, he could only do what any Minister would have done determine that butter must not go beyond a certain price, and he had takea steps accordingly.

He objected to the statement that no other industry had been treated in. the same way. The Government had purchased meat, wool, hides, skins, and had fixed the prices, which put just as heavy a tax on the producers .of these products as the levy put on. the butter producers. The Board of Trade had regulated the prices of coal, rents and meat in Christohurch and Duuedm* Questions relating to kerosene, petrol' bread, and milk had been dealt with* while the State butchers' shops in Auckland had been one of the board's greatest achievements. If it had not been for the Board of Trade flour would have been £18 to £20 a ton before now. On the consumption of meat alone the efforts of the Board of Trade had saved the people at least half a million. Mr. H. Poland (Ohinemuri) held that the butter-fat levy, although paid back to producers, reduced the value of butterfat by fd per lb. He gave the Minister credit for a sincere desire to improve matters, -which was more than the Board of Trade had ever done. It had only investigated, meanwhile the prices of al. most every commodity had gone up.