BUTTER TRADE

New Zealand Herald, Volume LXXV, Issue 22936, 14 January 1938, Page 10

BUTTER TRADE

WHOLESALE LICENCES LIMITATIONS IN TARANAKI DISMAY AMONG MERCHANTS [by TELEGRAPH —OWX OOKUESPONTVEN'T] NEW PLYMOUTH, Thursday Under tho Primary Products Local Marketing Act passed last year, provision was made for the licensing of wholesale distributors of butter, and it was thought that licences would bo issued almost immediately after the coming into force of the Act of November 1. They were not forthcoming during November or December, but during the past two days several firms in Taranaki havo received their licences and dismay has been caused by the limitations imposed. - Several merchants with headquarters at New Plymouth, for instance, find that they are now prohibited from doing business iii butter outside tho town of New Plymouth and its environs in spito of the fact that they have built tip a trade over a period of years in other districts. Strong criticism of tho limitations was expressed by New Plymouth merchants interviewed yesterday. They emphasised the serious effect tho restrictions would have on their businesses and said they considered the limitations were a grave injustice. Regulation Criticised

It was difficult to seo how tho retailer or the consumer would benefit by the disturbance of arrangements which had stood the test of time and had required initiative and considerable investment of capital to establish, said ono merchant. In a district like Taranaki, where there were nearly as many dairy factories as country stores, the absurdity of such regulation would be apparent. Comparatively few factories had the plant, organisation or wish to cater for local trade and for each factory to go to this heavy expenso in order to supply one or two storekeepers would he a serious economic waste. Representations to Minister Tho Secretary was generally many miles away from the factory and its potential customers, added the merchant, and to these credit would be extended with the usual clerical work that followed. Further, the cost of running a big factory truck to a store a few miles away with an odd box of butter where required would bo prohibitive. Strong representations were being made to the Minister of Marketing, the Hon. W. Nash, it was stated, and until their result was known it was perhaps fair to withhold judgment. Mr. Nash had assured the public that tho internal marketing proposals were intended to benefit tho dairy industry and the general public.

"When all tho facts have been laid before him," continued the merchant, "we hope the Minister will see fit to introduce a much more equitable licensing system than the ono proposed."