BUTTER MARKETS & FREIGHTS.

Dominion, Volume 6, Issue 1835, 22 August 1913, Page 6

BUTTER MARKETS & FREIGHTS.

• A matter of considerable importance to those engaged in the butter industry, and to the Dominion as a whole was brought under the notice of the Prime Minister yesterday by a deputation of butter exporters. The Stato subsidises a line of steamers running to_ Canada, and amongst the conditions of the contract is a ' provision entitling' the butter exporters of New Zealand to a certain amount of cold storage space on the vessels carrying on the service. The Union Steam Ship Company, which receives the subsidy and runs the steamers, has provided the required space, but the exporters claim to .have a grievance on at least two grounds. The first is that, they are required to commit themselves to booking the space they may require before they are in a position to know what their actual requirements will bo; and, secondly, that as the Company's vessels only call at Auckland, and as the Company will not pay coastal freight on the butter to be shipped, exporters outside the Auckland district are placed at a disadvantage to tho extent of the coastal freight, amounting to one farthing per pound. It would, of course, be quite unreasonable to expect the shipping company to keep its cold storage spaco open until the last minute for tho sake of the New Zealand butter exporters, and thus possibly lose the chance of filling up in Australia; but equally it is.not fair to the butter. exporters and to the country which subsidises the steamers that those wishing to ship should be compelled to book the space they may require too far ahead. There must always _bo a certain element of market risk in the butter export trado, but the risk should not be needlessly increased'by' - a condition which adds the necessity for an unreasonable degree of gambling on the possibilities of the space that may be required. The matter is one which if met in a proper spirit by the shipping company and the exporters should be capable of a satisfactory adjustment without any serious trouble. It is the business of. tho' Government, now that the .question has been brought under its notice by the deputation, to see that steps are taken to bring about a reasonable arrangement. The wider the range of markets this country possesses the better it is for producers, exporters and everyone else, and the effort that, is being made to develop trade with Canada is deserving of all the encouragement the Government can give it. The question of the penalising •of producers and exporters outside the Auckland Province by the cost of the coastal freight on butter is another matter. It is a distinct hardship to those concerned in the industry who have to pay the coastal freights because they are contributing to the subsidy which assists to give their Auckland rivals a distinct advantage. The Government can hardly be expected to pay the coastal freight; on the butter sent to Canada, and the shipping company has refused to pay it.- This raises tho question of whether the Government should not endeavour to arrange with tho shipping company for the steamers to call alternately at Auckland and AVellington. iWhen the Prime Minister approaches the Union Company, as he has promised to do, he might raise this question.

"I second the resolution for the purpose of reminding the mover that if this remit is carried he 'detents his own' object," said a delegate at yesterday's Counties' Association Conference, but a minute later ho withdrew his remark when it was pointed out that tho remit suggested a charge of 10 per cent, and not a discount of 10 per cent. A tender accepted by the City Council last night w-as that of X 3. B. Bailey for electric motors.