PRICES OF BUTTER.

New Zealand Herald, Volume LXII, Issue 19214, 31 December 1925, Page 9

PRICES OF BUTTER.

AUSTRALIAN STABILISATION THE PATERSON SCHEME. ADVANCE IN THE RATES. By Telegraph—Press Association—Copyright. (Received 8.15 p.m.) A. and N.Z, SYDNEY. Dec. 30. Following the introduction of the Paterson stabilisation scheme the wholesale price of butter has been increased in Sydney by 18s 8d per cwt, the new price being 168s. This price is to operate throughout the Commonwealth. A message from Melbourne states that the retail price probably will be raised to the extent of 3d per pound. The variations in the price of butter used for home consumption as ruling in the various Australian States has always been a contentious matter, and a number of schemes have been put forward at different times to solve the difficulty. During the past year the "Paterson" scheme has been discussed throughout Australia, and at a, conference held recently this scheme was adopted. A recent writer said: —"At first glance the scheme appears very simple arid a decided short cut to a better price for producers. At the same time there is something of the 'get-rich-quick Wallingford' method about it that makes it very doubtful whether the system will endure and stand the test of time. The scheme, in short, provides for a levy of Id per lb. on all butter produced by factories signing the agreement. As the proportions of: butter nsed for home consumption and export | are about 3 to 1, this lc-vy of Id per lb. on production enables the paying of a | bonus of 3d per lb. on all butter exported Iby the same factories. The result is that | this bonus raises the London parity by 3d per lb., incidentally raising local values by the same amount. The scheme, quite ingenious in itself, can only be applied effectively, of course, in countries where the local consumption exceeds the export, and also where an import duty protects local manufacture. Whether the duty of 2d on butter imported into Australia will prevent New Zealand producers from competing on the Australian market once this scheme is launched remains to be seen." The name of the scheme, the writer remarked, is somewhat of a misnomer, as it will certainly not have the effect of doing away with the inter-State fluctuation. It will naturally raise the local values by 3d all round, but the same fluctuations are liable to occur outside this higher level of values. This fact has been fully acknowledged.