BONUS BOXES

NZ Truth, Issue 1168, 19 April 1928, Page 4

BONUS BOXES

But New Zealand Butter (From "N.Z. Truth's" Special Melbourne Rep.) Allegations have been made to "Truth" that certain individuals concerned m the produce trade m Australia have been buying large quantities of New Zealand butter, snipping it to Melbourne and Sydney, re-packing it m Australian boxes, and sending it overseas as Australian butter, thus wrongly earning the Paterson bonus of £26 a ton. " THE Paterson plan imposed a levy *■ on all butter produced m Australia, the funds collected being used to provide a bounty on exports. By itself that would not have helped the producer, the factory, nr others concerned m the marketing of the product, but the effect of increasing' the amount received by the farmer who exported his butter was to bring about an automatic increase m the home consumption price, so that supplies for the Australian market would be assured. If no advance had occurred m the Australian price, every factory would have tried to export the whole output to obtain the bounty. But the scheme was never meant to assist New Zealand butter, which l.s cheaper than Australian, and which comes here practically free of duty. Even with freight charges and repacking, those connected with the present scheme found that they could still earn a handsome profit by repacking New Zealand butter as Australian and exporting it. "Truth" has laid the whole scheme before the authorities concerned. When first approached, both the Butter Stabilisation Committee, which pays the bonus, and the Government graders found it hard to realize just how it could be worked without instant detection. But since then an official who helps to administer the Paterson plan has admitted that the scheme is possil^e and that shipments are now bemg carefully watched. Yet despite these checks and the making of a statutory deelai'ation, which carries a penalty if the statements be false, it is alleged by "Truth's", informant that someone has been clever enough to get away with It and wj-ongly claim the bonus.