PRICE OF BUTTER.

Press, Volume LIII, Issue 15989, 25 August 1917, Page 9

PRICE OF BUTTER.

OUTLOOK NOT BRIGHT. STATEMENT BY PRIME MINISTER. (special to "the pbess.") WELLINGTON, August 24. A question regarding the xecent conference between the Prime Minister and tho butter producers about tho purchase by the Government of next season's output, was raised by Mr Poole in the House to-day. Ho asked Mr Massey whether the purchase had been made at Is 4d per pound.

Mr Massey said this was not a fact. Tho negotiations were still proceeding) but they had reached such a stage that ho would be able to report to Cabinet. Finality had not been reached, and as iar as he could see there would bo no finality for a week or two. Mr Witty: Don't give them that price—Is 4d. Mr Massev: I can't discloso the position : it would not bo a fair thing to do. Mr Walker asked another question about tho butter deal. He asked whether the Government would refer it to the Cost of Living Committee, and he urged that this ought to be done, because the price the Government proposed to fix for the Belling of butter retail was, in his opinion, too high. Mr Massey said he could not accept the suggestion. The Government could not divest itself of its responsibilities, and its chief responsibility was for the finances of the country. (Hoar, hear.) He had met the butter producers and reached an understanding with them, and it would now be liis duty to refer tho matter to Cabinet. Tho interests of the consuming public had not been forgotten, and the Government had also to consider the interests of the producers of butter. • The outlook for the butter industry was not bright, and unless something was dono the industry was going to suffer. It was ono of our principal industries, and if it were injured it would be a bad thing for the country. It was still possible that tho Imperial Government would take over tho butter, and negotiations to this end had been proceeding. FUTURE PROSPECTS.