PRICE OF BUTTER

Dominion, Volume 10, Issue 2899, 11 October 1916, Page 6

PRICE OF BUTTER

CONFERENCE FAILS * THE BOARD OF TRADE SCHEME LEVY ON" BUTTER FAT The conferenco of representatives of the butter-trade with the Minister of Commerce (tho Hon. W. D. S. MacDonald) aiid the Board of Trade sat continuously yesterday afternoon ami ovening, and in the end tho butter men decided that they could not agree to the proposals submitted by the Government.)

These proposals wero formulated by the Board of Trade after very thorough and careful investigation, and by the Board of Trado submitted to tho Government. Cabinet approved them provisionally, and they were yesterday submitted to the conference. The Board of Trade dealt only witli wholesale figures, but it recommended a price for local consumption equivalent to a less retail price than that now ruling. Even this price, Is. Bd. per lb., does not allow factories a return equal to that obtainable by sale for export. To recompense the producers who sell at the lower prico for local consumption tho board recommended that a tax or levy be paid at the rate of } per penny on the difference between tho export price per lb. and the local consumption price. This money so obtained was to be funded with the Government under the control of the Imperial Supplies Branch of which Mr. R. Triggs is tho head, and through, this channel disbursed to recoup thoso producers who had suffered' loss of profit by selling at the lower rate.

It must be understood that tho Government has no power to levy and collect such a tax without the consent of those who are to pay it. Nor can the Government fix the price of butter for sale hero or elsewhere.. All it can do Is to prohibit export until the producers come to terms. It is probable that in the end some modification of the board's scheme will be adopted. Cabinet did not accept at once the recommendation that the local prico should bo fixed below tho present ruling rate, preferring to defer consideration of this point until the producers had been heard upon it. It is understood, however, that tho decision of the Government that "tho price of butter for local consumption must not be raised is final and inflexible. Whether it will be reduced is another matter.

Before tho conference dispersed, tho producers set up an advisory committee to confer with the Government and the Board of Trade on questions which may arise in future staees of tho matter. Tliq next stage will bo a meeting of Cabinet to-day, at 1 which the Government will deal wth. the situation as it now presents itself.