THE BUTTER-FAT LEVY.

Taranaki Daily News, 19 October 1916, Page 5

THE BUTTER-FAT LEVY.

ACTION BY PRODUCERS* COMMITTEE

VALIDITY OF ORDER

QUESTION TO BE TESTED.

BUT LICENSES TO BE OBTAINED*

By Telegraph.-Press Association. Wellington, Last Night In connection with the regulation* which have been issued by the Government fiung the rmjimm ice of butter, and providing for the issue of licenses to those factories which export either butter or cheeße, it is understood tiat stfps are being taken to settle the question which has been raised of Hie validity of the ! Order-in-OounoU making these regulations. In this con, hection the following circular has bet* issued to dairy companies by the Fhx ducers' Committee:— ' ™

We were appointed to represent th* producers interest in connection with he Board of Trade proposal to regulate the price of butter upon the l«ws market. Such proposal involves an assessment over the whole of the butterfat supplied to the butter and cheat* factories within the Dominion. A cow of the Gazette notice and memorandum setting forth the proposed means of giving effect to the arrangement is being posted to-day to each dairy company by Mr. Triggs, w i 10 lias beeu ap pp mt £ licensing authority under the proclamation. These will fully explain the poal' turn. After considering the proposition, and its bearing upon the several and varying interests represented, and after taking legal opinion, we have decided to contest the validity of the Order-to-Cotmcil. Meanwhile the provision* of the proclamation are in force, and we advise dairy companies forthwith to make application for their license*, otherwise serious trouble and delay nifty arise in connection with shipments per steamers due to leave shortly wl understand that if the proclamation It found to be ultra vires, the license* will become inoperative. We also recommend dairy companies which do buiineM upon the local market to sell their butter at a rate to retailers corresponding with not more than Is 7d per lb. to consumers, and (o maintain silpnlies for their usual business during the snort time before a decision will likely be made. Unless this is done the position will be seriously complicated. If the proclamation is sustained we shall in the interests of producers deem it our duty to assist the authorities in making the scheme as complete and satisfactory as possible. • (Signed) Arthur Morton. Jacob Marx, H. E. Paeev, W. Fisher W D. Powdrell, C. P. Agar "

AN EMPHATIC PROTEST. Woodville, Last Night. ■' A meeting of representatives of all th» co-operative dairying company operating in the Woodville district was held this afternoon to discuss the imposition of the U per lb. tax on butter-fat. It was unanimously resolved to protest emphatically against the cheese producers being called upon to subsidise the butter producers ns proposed by the Board of Trade, and that the only equitable, method of protecting the consumers and producers of the Dominion is by an export duty being imposed on all exports.

MEETING OF DAIRYMEN TO BE HELD. INTERVIEW WITH DAIRY LEADER A representative of the News had an interview with Mr. W. D. . Powdrell, chairman of directors of the Kaupokonui Dairy Company yesterday. Mr. Powdrell was on his way from Welling, ton, and after referring to the conference * of representative dairymen with ths Ministers and Board of Trade, said the Order-in-Couneil recently issued impose* the following conditions: The wholesale price at the factory for bulk butter for consumption in New Zealand and for transports is to be J 49s 4d, or Is 4d per lb., plus the usual charges obtaining before the date of the Oider-in-Council in each particular locality, the loss, if any, made by those supplying New Zealand as against the nett returns of consignor* to the Home markets to be made up by a levy on the manufacturers of butter and cheese in New Zealand, including those catering for local requirements. Mr. Powdrell proceeded: "It is estimated that the consumption per head in 2s T ew Zealand is half a pound of butter per week, and as the supposed present difference between la 4d and Home prospeetivc price is 3d; we have <i saving in the average family or six of'9d per week. The present Government levy is fixed at 3d per lb. bntterfat on all milt • assessed on butter-fat contents maw faclured into butter and cheese. Taking the output of cheese at 45,000 tons we have 39,080,0001b. of butter-fat, and butter at 30,000 tons, that is 20,000 tons export and 10,000 tons New Zealand consumption, we have aoproxiuutaly 5a,500,0001b. butter-fat, a total of jus* under 93,000,0001b5. of butter-fat which «.t Jd per lb. give*; over '£294,000. Any company can easily estimate their levy on prensnk rates as approximately £Z 14s 3d per ton of cheese, and £5 18s 3d per'ton. of butter. The reason given both by the Minister and the Board of Trade for cheese being included was that butter factories would be threatened with their supplies of milk being diminished by tho same being diverted to cheese making, and therefore it was corsidcrsd noccs-i sary to the successful of the scheme to include cheese. The Minister also made a strong point of the Government's assistance to tho industry as a. whole through their grading instruction and assistance, in securing space and reasonable freight. • t Mr. Powdrell said that as the representatives were not appointed by their companies, and as the Government'* action opened up a very big question, every dairy oompany was being asked to send accredited representatives to the meeting to be held in Hawera. on Saturday ne::t, the 21st. inst.

MEETING TO BE HELD AT HAWERA • As n meeting of.tke TaranaM Dani> ing and Farming Industrial Union of Employers is to be held at the Council Chambers, Hawera at 10.30 Satur. day morning to consider matters con-* nccted with wages, we have been asked to state that the, direetors 0 f All the cheese and butter factories ia Taranaki are particularly urged to be present at the roeetmg « order to dincuaa the