THE DAIRY INDUSTRY.

Otago Witness, Issue 2630, 10 August 1904, Page 10

THE DAIRY INDUSTRY.

DEPUTATION TO THE FREMIER. A SMALL BONUS PROMISED. (Fkou Oue Own Correspondent.)

WELLINGTON, August 4.

A largo deputation representing the dairy industry waited on the Premier and the Ltinisrf? of Lands to-day to uTg& that the Government reconsider its decision to withdraw the contribution of 3gd per box now given towards the cost of freezing butter for export. Mr Jennings introduced the deputation, and Messrs Lawry, Massey, Lang, Kirkbride, Moss, Harding, and other North Island members wore present.

Messrs Foreman (president of the National Dairy Association), Counett (of the Moturoa Freezing Company), Cock (Taranaki). Marx (Mangatoke), M'Failane (Ballance), and Vile (M.H.R. for Maniwatu) were the speakers. They urgetl that as there had been a drop in the price of butter, while the prices of land and labour had increased, the present was an inopportune time to withdraw support from the industry. They put forward the view that other local indxistries are protected, and that the dairy industry deserved come protection against the cheap labour available in Siberia and the Argentine. One spepker stated that it was hardly possible to make a living at the industry unless a man did it with the assistance of his own family; and others suggested that if the same bonus as last year could not be given the amount should be reduced gradually.

The Premier, in reply, said the deputation had oome to the Government because there had been a material drop in the price of butter. — ("Hear, hear.") They were told last year tbat the subsidy would not be renewed. Be maintained that the Government had given reasonable encouragement to the industry. Since 1595 the Government ■ had given £22,251 for the grading of dairy produce and inspection of dairies, £78,771 for cool storage and subsidies, £22,345 for contiijge-ncies, £1420 for dairy schools, and £592 as a bonus for preserved milk — a total of £125,379. The amount for storage alone last year was £11,000. He did not profess to be an expert, but he thought that even at the present price of butter, and admitting that high prioes had been paid for land,' thei-e was still a fair margin of profit. He was surprised at people croaking because of a slight drop in prices. Tn many cases, where one party provided the capital and the other the labour and halved the profits, tho capitalist got 20 per cent, on his investment. — (A Voice; "Not this year.") The Premier said, even allowing for the drop in prices, there was a fair investment left. However, tho Government did not wish to do anything that would militate against the industry. It had encouraged it, and did not wish to drop it at a time when prices were low. There was something in the suggestion that the subsidy might be brought; down gradually. Mr Duncan and he had come to the conclusion to recomfmend the Cabinet not to drop the bonus altogether this year. He could not say what amount Government would give, but he thought it might reduce it by half. It had been indicated to him that there might be other reductions in connection with the dairy industry, end in view of that ho thought they could recommend the Cabinet to gire a subsidy of lid per box.