BUTTER SUPPLY.

Taranaki Daily News, 30 September 1920, Page 5

BUTTER SUPPLY.

A SHORTAGE PREDICTED. NEW PRICE NOT FIXED. By Ttlegraph.—Press Association. Wellington, Last Night. In the House of Representatives this afternoon, replying to Mr. 6. Mitchell (Wellington South), Mr Massey said the stocks of butter in the Dominion would last another week. Owing to the late spring and the unusual mortality amongst stock, it would be three weeks before, sufficient butter was produced to supply the wants of the Dominion, and until then he quite expected there would be a shortage in the Dominion, and he counselled economy on the part of the people until full supplies came to hand. As to price, Mr. Massey did not think there would be any alteration until the Butter Committee reported, but he was not quite sure on the point. EVIDENCE AT INQUIRY. AMOUNT OF RETAIL PROFIT. GROCERS ASK FOR FOURPENCE. Wellington, Sept. 29. Giving evidence before the Butter Prices Investigation Committee this morning, C. B. Norwood, chairman of the Wellington Municipal Milk Committee, the following percentage increases between January, 1919, and August, 1920: Coal 00 per cent., benzine 23.23 per cent, general labor 33 per cent, engine-room 17 per cent, motor drivers 9.5 per cent, first assistant 26 per cent. The minimum wage at the city ttulk station was £4 Is per week, plus an allowance of one quart of milk per day. H. W. Bennett (Wellington), representing the retail distributors of butter throughout New Zealand, stated that the overhead charges in the grocery business during the past four or five years had increased from 14 to 18 per cent. During the war period the retailers' rate of profit had been lower than they would have agreed to at other times and now they asked for a fair profit. The grocers' profits on butter when the price in the early war period was Is 8d per lb waa 2d. It was now asked that, when the price was 2s Od per lb, or thereabouts, the profit should have the same relation to the expense of running the business, namely, a margin of 4d per lb profit when the price was between 2s 6d and 3s. The gross profit they asked for was between 12$ and 13 per cent for cash, arid from 15 to 10 per cent for booking and delivery. This margin was below the actual working expenses. In Melbourne the retail price of butter was 2s 7d per lb, with an extra Jd in each instance for (booking and delivery. The cost to the grocer was 2s 2id. They would much prefer that, unless they could make a profit of 12$ per cent on butter, they should have its distribution taken out of the hands of the grocers altogether.

E. J. G. Tunnicliffe, farmer, Feilding, estimated the cost of production of his butter-fat at Is 5d per lb, without taking into consideration the higher value of his land.

Peter Hansen, farmer, Kauwhata, stated that his expenditure was £741, as against an income of £679. If credit were given him for wages, interest, etc., he was undoubtedly farming at a loss.

EVIDENCE CONCLUDED. EARLIER EVIDENCE REFUTED. Wellington, Last Night. The Butter Prices Inquiry continued throughout the afternoon and early evening, when the -hearing, of evidence was concluded. During the afternoon A. W. Page, master grocer, wag given permission to make an explanation on behalf of the retail grocers of the Dominion. Witness stated that.„Bennett was speaking merely on his own behalf when he made the assertion that unless he got 12J per oent. profit lie would prefer to see butter taken out of the hands of the grocers altogether. The majority of the grocers were desirous of retaining the retail distribution of butter at all costs. Questioned by members of the committee, witness said he was of opinion

that the suggested reduction in price to the poorer class by means of ration tickets would lead to endless confusion on tlm score of discriminati'on. A witness from Eketahuna said there were hundreds of settlers just hanging on waiting for better prices. The committee will report in due course.