DUTY ON BUTTER.

New Zealand Herald, Volume LXV, Issue 19962, 2 June 1928, Page 13

DUTY ON BUTTER.

INCREASE BY AUSTRALIA. OPERATION FROM JUNE 15. END OF PROFITABLE TRADE. Australia's tariff barrier against the importation of New Zealand butter andi cheese will be raised on June 15, and with its erection the end is expected of a trade that has often proved highly remunerative to the Dominion's dairy farmers. A duty of 6d per lb. will be imposed on butter and cheese, and it is considered that this impost will be sufficient to prevent importations of dairy produce at payable prices, except at times of extreme shortage in the Commonwealth output. The operation of the Paterson bounty scheme, to encourage exports of Australian produce, is at the back of the increase in the duty, which hitherto has been 2d per lb. A levy of 3d per lb is made on all butter manufactured, and the amount realised is paid as a bounty ito the producers of butter for export. The effect is that the price for butter for local consumption is artificially increased by 3d per lb., and it has been found that with this addition to the cost of tbo local article, New Zealand can compete very successfully. The growth of the trade is revealed when it is stated the value of butter exported to Australia from Now Zealand in 1927 was £741,957, compared with £289,453 in 1926 and £5132, the average for the four previous years. Strong representations against the increase in the duty have been made by the New Zealand Government, but without succeSiS, the body of farming opinion in the Commonwealth Parliament being great enough to force the hand of the Federal Government. Efforts were made by the Australian farmers to have the new duty imposed as soon as it was sanctioned by Parliament, but these the Dominion Government was able to resist, insisting on the observance of the clause in the trade agreement which provides that six months' notice must be given of any alteration in the tariff. This term expires on June 15.