Taranaki Herald.

Taranaki Herald, Volume L, Issue 12619, 1 August 1904, Page 4

Taranaki Herald.

MONDAY, AUGUST 1, 11)01. TUl£ BUTTER BONUS. h'very reader of this paper who has j taken the trouble to give, the matter any attention will know that, as a general principle, we do not favour ijrotoctive tariffs and other artificial aids to industry, because we hold that an industry which cannot stand on its own bottom is not worth pursuing. Yet there are circumstances in connection with the dairying industry which make it an unfair thing and a hardship that the assistance which the State has for many j'ears given the industry should be suddenly i withdrawn. Nearly all colonial induhtiies aie artificially supported by □ leans of tho tariff, which means that the dairy farmer must pay from forty lo fifty per cent, extra for most of Jiis requirements in order to su|>port j ("loiuul manufacturers, while his own produce has to compete with Denmark, RusHia, the Argentine, and other foreign countries iv the markets cf the world. He is taxed up to the hilt to help other industries, while in his own he has no assistance, except the trifle afforded by the Dairy Industry Act. The withdrawal of the subsidy is also peculiarly illtimed, because, after a period of high prices for butter -and cheese, when the subsidy would not have been so! much missed, the British market has I undergone a great change, and considerably lower prices rule. In the case of the Taranaki dairy farmers the determination of the Government to withdraw the subsidy after the end of tho present month bears particularly hardly. During all *the years that the freezing works at Moturoa were the property of capitalists high bonuses were paid by the Government, with the result that the owners made a large sum of money. The co-operative dairying companies which subsequently purchased the works, received a reduced bonus, and now that the works have been destroyed by fire, involving the shareholding companies in heavy loss, the subsidy is to be entirely withdrawn. The grading will be clone free, as heretofore, but all labour in connection therewith must be provided. The amount involved is not very great, the bonus labt year amounting to only £13,000 for the whole colony, ne t more than is constantly being thrown away on li'Sbi worthy objects. As we sakl before, we dislike, on principle, artificial aid to industries, but when the colony tuxen dairy farmers so heavily to support boot factories, candle factories. M>ap factorTe.s, matcb factories*, and a score of other city industrii.: it .seems unfair that the little ai-si^taiue tfiven to a native industry should bo withdrawn, especially at so inopportune a time. It would have been much fairer to have provided for a gradual diminution. No doubt the condition of the colonial exchequer demands rigid economy, but there are many directions in which more money miyht be bayed with less injustice.