COST OF LIVING.

Otago Witness, Issue 3200, 14 July 1915, Page 9

COST OF LIVING.

price OP BUTTER. PROHIBITION OF EXPORT. (Fnoii Our Own Correspondent.) WELLINGTON, July 6. Reference to the action taken by the Government in regard to the export of butter was made in the Plousc this afternoon during the discussion on the Regulation of Trade and Commerce Act Amendment Bill. Air Wilford, who raised the question, referred to the export of 40,000 boxes of butter to Australia since the outbreak of war, and said that an expert in the trade had informed him that this exportation was the cause of the present high prices. The Prime Minister stated that Mr Cudche (the head of the Dairy Division of the Department of Agriculture) had informed him that there was plenty of butter in New Zealand to last until the new season’s butter came in. The price was going up on account of the demand from Australia and the greed of some people connected with the industry. —(“ Hear, hear.”) Mr Witty : You have hit it now. Mr Aiassey said that as soon as the Government was notified of the last rise in the price in Auckland it took the necessary steps to deal with the question. He believed that in about three weeks from the present date there would be plenty of butter in the northern districts. The Minister of Customs would refuse to allow any butter to bo exported so long as the present prices wore ruling. Mr Wilford asked whether it would not have been possible earlier, when butter was at a lower price, for the Government to have bought all the output—say, of the Taranaki district —at a fair price, and prevented this exportation. Mr Massey said that the serious increase in price had commenced about two months ago. Prior to that the price was not abnormal. When wo got back to a normal position, which would be in a few weeks’ time, the prices would fall. There was sufficient in the dominion now for our own requirements. The butter in New Zealand at present was in the hands of a vow few. and he was afraid that these people had put their heads together. The price of cheese to-day was out of proportion to the price of butter. Cheese was now quoted in London at 85s per cwt, which was equivalent to Is lOd per lb for butter. If they did not handle this question very carefully they would have farmers making cheese instead of butter. The Government could not prohibit the export of cheese because the British Government was calling out for as much as possible for army purposes. Air Witty: When butter is being stored in anticipation of a rise in price the Government should take a proportion of the stocks. Mr Massey said that in a few weeks wo would have so much butter that wo would be looking for a market, for it. In six weeks’ time butte:; would bo very much cheaper than now. No sensible nian would think of storing butter when such an action could only result in a serious loss to him. In reply to Air Isitt, Mr Massey said that the Imperial Governmekj was continually asking him to afford as many facilities as possible for the manufacture * of cheese for export for the army. It was partly on account of the great demand for cheese that the price of butter had gone up. Butter had gone up as high as Is lid in Now South Wales and 2s 2d in Tasmania. . On the third reading of the Regulation of Trade and Commerce Act Amendment Bill, Sir Joseph Ward said he could not see how the average man could feed, clothe, and educate his family under present circumstances. and he thought it was the duty of the House to do something to relieve this pressure on the resources of the people. The abnormal prices ruling in ’New Zealand were exemplified by tnc reimportation ■of 40,000 boxes of butter, for. unless those who were reimporting the butter could make a big profit out of it they would not bring it back. There was also the other fact that in some parts of the dominion people were paying Is 8d per lb, yet we were a butter producing country. Butter was only one article, and surely there should be men in the House who could devise some moans of cheapening the cost of living to so many of our people. Personally, he agreed to a great extent with what Mr Andrew Fairbairn said with regard to the need for protecting the people against exploitation. It was undesirable that there were coiSbinations which were making undue profits out of the abnormal conditions prevailing, and he had no hesitation in saying that legislation of a sufficiently flexible nature should be introduced to prevent exploitation of the people. In the matter of wheat, the fact remained that after the Government had purchased the Canadian wheat the price of flour was raised. At this stage the Prime Minister interjected that he had just received figures which showed that only 1500 or 2000 boxes of butter were being reimported to New Zealand from London. Sir Joseph Ward said the figures appeared to him absurd, but as the Prime Minister had alluded to them he must accept them. He said he could not see how the House could, under the existing circumstances, fail to revise the whole question of wages payments to our people. What was wanted was a board of trade similar to the British board, so that prices could be systematically revised from time to time. The cost of living for the last 15 years had increased enormously. Many argued that the regulation of hours and the payment of higher wages was the cause of this Those were some of the causes, but not the' sole cause. He had seen that our exports Pad increased this year by £7,000,000. The Prime Minister: That is not so—only £4,000,000. Sir Joseph Ward: Well, that is large enough, and it shows that this country is £4.000,000 richer than it was before the war. In spite of this the wage-earner was finding it harder to live. If ever there was a case for a practical Royal Commission to' investigate the causes of the rise in price and provide a remedy it existed to-day. There was nothing that was causing so much concern to the mother in her homo, and the wage earner who was earning all ho could. After the war measures had been disposed of the work that lay before the House should be the passing of flexible legislation which would help to case the burdens of the people. Air Wilford stated that the Prime Ministcr had declared that we had plenty of butter , in Now Zealand for our own needs. If this was so why was the shipment of

butter being brought back to the dominion? Mr Hindmarsh contended that tho report of the Foodstuffs Commission was worthless because the men who comprised the commission wore in no way fitted to __ investigate such momentous questions. The conduct of the Massey Government _ had all gone in the direction of admitting that prices could .not be controlled by it. While everyone knew that prices must rise when war broke out, tho chairman of the Arbitraiton Court bad refused to consider r.n increase in wages, and yet this man had been appointed chairman of the Foodstuffs Commission. His conduct in tho Arbitration Court had shown him wanting in foresight. This investigation of tho Foodstuffs Commission was foredoomed to failure. The Speaker at this point drew Mr Hindmarsh’s attention to tho ruling under which ho was prohibited from commenting upon the conduct of judges. Mr Hindmarsh then proceeded to argue that the whole method of dealing with prices of foodstuffs was typical of Ministerial bungling. Had the Government been rightly advised steps could have been taken to prevent people from being exploited without pressing with undue hardship on tho farmers of Commerce, hold on Tuesday, 6th inst., the Messrs Hornsby, Downie Stewart, Yeiteh, Webb, Parr, Witty, .Field, M’Couibc, and Payne also spoke. Mr Massey described the debate as tho stalest, flattest, and most unprofitable that he had over heard in tho House. There had been a groat dc-al of grumbling, but not a single suggestion as to how tho policy of the Government might have been improved. Ho quoted Mr Asquith as against the fixing of prices, which he had declared had operated with most disastrous results in Germany. Ho defended the personnel of the Food Stuffs Commission, every one of whom was above susnicion, and he was surprised to hear air Hindmarsh’s attack on them. When war broke out they found that we had very little wheat in the country and that it was in very few hands. The Government, therefore, let it bo known that if there was anything like exploitation it would deal drastically with them. Prices generally in New Zealand wore very much* lower than in Australia. Taking New Zealand as a whole the' increase had been only 10.60 per cent., in Australia it had ranged more like 25 per cent., and this difference was entirely due to tho policy which the Government had adopted at the outbreak of tho war and had pursued over since. He characterised as contemptible the action of Mr Witty in referring to a Canterbury miller in a way that ho would not dare to speak of him outside the House. That miller had purchased wheat from the Government on terms requiring lum to sell flour at £ls 10s, and ho had sold some of it at £l4- 11s. Tho difference between the price of sugar in New Zealand and New South Wales was £4 per ton in favour of our dominion. Oatmeal was. cheaper in Now Zealand than in New South Wales, and meat was equally cheap in New Zealand as against Australia. He concluded by quoting a remark by Mr Justice Stringer to show that no evidence of exploitation had been given before the commission. The Bill was then read a third time, and passed. The House rose at 0.55 a.in. till 2.30 tomorrow.