BOUNTY ON EXPORT BUTTER

New Zealand Herald, Volume LXIV, Issue 19833, 31 December 1927, Page 7

BOUNTY ON EXPORT BUTTER

AUSTRALIAN SCHEME. RECENT INCREASE CANCELLED. (Received 30, 7.30 p.m.) A. and N.Z. HELBOTJR3ST3, Dec. 30. The Australian Butter Stabilisation Committee has decided to revert to the export bounty of 3d per lb under the Paterson scheme. The Australian tariff proposals, which included an increase in the duty on New Zealand butter from 2d to 6d per lb, were introduced at the end of November. Anticipating that arrangements would be made to bring the higher rate' into, operation on January 1, the Australian Stabilisation Committee decided, early in December, to increase the bounty, under the so-called Paterson stabilisation scheme, from 3d to 4d per lb .on all butter manufactured and toned on and after January 1. This proposal has. been, abandoned owing to the refusal of the New Zealand Government, to waive the six months' notice required by the reciprocal tariff agreement. The Sydney Daily Telegraph, of December 22, published the, following explanation of the position:—"Over three weeks ago the Federal Government cabled asking the Dominion Government to concur in the increased butter and cheese duties. New Zealand has objected, and is demanding the full pound of flesh under the reciprocal trade agreement with the Commonwealth. The Dominion is acting within its rights in claiming the full six months' notice of alteration in customs duties before they can become operative. The Federal Government, having granted a similar concession to New Zealand in regard to wheat and flour, was optimistic that tho six months' notice would be waived in regard to dairy produce. Upon that assumption it was expected that the full protection. of the revised tariff would take effect with the beginning of the new year. It is now under consideration that two Federal Ministers proceed tc New Zealand to place the position before the Prime Minister, with a view to securing a compromise." Tho Telegraph stated that though New Zealand butter could at present be brought to Sydney to undersell the local market, it was not likely that any speculator would risk doing so in a time of flush supplies and with the factory outputs increasing week by week. The position, however, was different in Victoria, where, with a dry season, production is on the decline. Melbourne, therefore, views the prospect from a different angle. Also, if any butter is being stored in Victoria against the autumn-winter shortage, such operations might be jeopardised later by the importation of cheaper New Zealand supplies.