THE BUTTER CRISIS

Otago Daily Times, Issue 18447, 7 January 1922, Page 10

THE BUTTER CRISIS

THE WELLINGTON CONFERENCE. SOUTH ISLAND DELEGATES’ ' REPORT. , (Pks United Fbbss Association.) CHRISTCHURCH, January 6. ’ At a conference hold to-day of the representatives. of the South Island butter factories and producers’ associations, a report of the South Island delegates to the Wellington .conference on Thursday was presented and adopted. In this report the delegates say:— ’ >- ■ . “We believe that if any attempt at bolstering up the market is made the serious position which/exists to-day will continue over the next season, whereas if the butter was sold by the Imperial Government at a cheap rate it would, rapidly go into consumption, and help moro» quickly to overcome the present slump that exists in the British markets. The fact must be apparent to everybody that the 22,000 tons of butter is in existence, and it has got to go into consumption, and that any increase in price will simply , mean reduced consumption, and 1 carrying * over of thousands/ of tons of butter, and prejudice the position at the ( opening of the next season. It is a very difficult position for people representing the producers of this country to recommend a course of action which will mean a financial crisis to several of the producers at Bnt_ on the land, yet on the other , if those producers canndt survive one season of bad times it is logical to assume that _ they will find it more difficult to survive two _ bad seasons. This season’s market is going to be a poor one, although we believe some improvement will occur in the near future. It mdy be as well to point out that there appears very little possibility of the purchase scheme being put into_ operation now, as cables from Australia indicate that the producers there are not willing to hold back half their The Commonwealth Prime Minister is _ not' favourable to the Government providing the finance,, but in case these' difficulties are overcome your representatives would like ; the matter given careful consideration, so that if the opinion arrived at in Christchurch, and supported by the delegates in , Wellington, is still held in the south, representation be made to the Prime 1 Minister intimating our unwillingness to enter into the scheme, or to subject ourselves to • any levy.” GOVERNMENT ASSISTANCE , ' PROPOSAL. ■ / MR MASSES CAUTIOUS. PALMERSTON N., January 6. ' Asked to-day if the Government would provide the producers with the necessary financial backing to enable the purchase of the butter 'stocks held by the Imperial Government, Mr'| Massey told a reporter that the Government bad not yet considered this phase of the situation, and whether or not assistance would be forthcoming he could not say. Yesterday’s meeting had not yet communicated with him. and ho was not prepared to bromise anything until he know what the Government was asked to back. , SOUTH ISLAND OPPOSITION TO PURCHASE. TELEGRAM TO THE PRIME ■ MINISTER. , (Pee United Peess Association.) CHRISTCHURCH,/ January 6. ■ After a conference held here to-day of representatives of South Island Butter factories and produce!* the following telegram was sent to Mr Massey:—“The resolution to purchase Imperial butter ; was defeated at yesterday’s Wellington conference, but carried after voting on a tonnage basis, which course was objected to. The South Island unanimously opposes the purchase, and refuses to participate in any levy, believing that the Imperial Government should itselfj through the usual channels, dispose of its stocks. Before any Government action in support of purchase is given," wo hope you will arrange to hear the South Island representatives, also those others present who opposed, the purchase.”