DETAILS OF THE SCHEME

Dominion, Volume 10, Issue 2900, 12 October 1916, Page 6

DETAILS OF THE SCHEME

POWERS OF THE STATE ' NO EXPORT UNLESS LEVY IS PAID. Following Is the text of the memorandum referred to in tho paragraph preceding:— / i. On and after tho export of

butter and chceso will be prohibited except under license. 2. All factories desiring a license to export either butter or cheese shall make application for permission to do so to the officer in charge of tho Imperial Government Supply Department, General Post Office, Wellington, on" the prescribed form.

3. Licenses shall bo issued by the Imperial Government Supply Department, General Post Office, Wellington. 4. Every applicant for a license shall sign an agreement embodying the following terms and conditions:— (a) That he will furnish to the Imperial Government Supply Department monthly a return on a prescribed form, showing the quantity of butter-fat received- at the applicants factory as from first of September, 1916. The returns for, the months of September to be furnished forthwith, and cacu subsequent return not later than the seventh of each succeeding month. (b) That he undertakes to pay in respect of such butter-fat such charge per pountl ns.nufy.be fixed from time to time by Order-in-Council. (c) That ho undertakes to furnish to the Imperial Government Supply Department the quantity in pounds of butter boxed for export and tho quantity boxed for Ideal consumption durinp the same period. (d) That lie undertakes to furnish to tho Imperial Government Supply Department the name of the firm or individual to idiom the butter for local consumption is supplied. In case the licensee is not the exporter, ho shall supply the name of the firm or individual to whom the butter is delivered or sold. (e) That every applicant for a 1 license shall brand alFboxes of butter either as being for export or for local consumption, as the case may be. Such brands shall be supplied on application to the Director of the Dairy Division. "\ (f) Applicant shall also undertake to furnish to the Imperial Government Supply Department such further particulars as may be required from time-to time, and to allow an accredited official of the Department to inspect thebooks, accounts, and records of applicant factory in eo far as they relate to tho receipt and disposal of butter-fat, butter, and I cheese.

5. Where in the opinion of the Imperial Government Supply Department tho circumstances require it a statutory declaration verifying the particulars supplied may bo demanded.

G. Payment by ,a licensee under the terms of the aforesaid agreement shall be mado within seven days of the receipt of a notification from" tho Imperial Government Supply Department of the amount due; such payments to be mado to the Imperial Government Supply Department, Wellington, direct. 7. Failure to comply with anv of tho terms of the agreement or the regulations shall render tho license liablo to forfeituro in addition to tho nenalties prescribed under tho Regulation of Trade and Commerce Act, 1914. and amendments thereto and the Customs Act, 1913.

8. Moneys paid under paragraph 6 shall be available for distribution to factories supplying the local market on the. basis of the quantities of butter supplied for local consumption. . 3. Before any.factory ran participate in tho distribution mentioned in Clause S if, must contribute to the Imperial Government Supply Department a sum per pound of butter-fat entering tlio factory equivalent to tho charge mado for licenso to export, and it shall furnish to- the Imperial Government Supply Department the monthly return as required in Clause -1.

10. AVhore at -any time it is intended to transfer butter marked for local consumption to export it shall bo necessary to obtain the permission of the Director of tho Dairy Division, who shall furnish aj return showing- tho miuiifity transferred, and tho name of the factory producing the same to the imperial Government Supply Department, and such gutter shall not be taken into account in the distribution referred (o in Clause

8- , 11. Nothing in tho scheme shall .apply to milled "butter, whey butter, farmers' dairy butter, farmers' cheese.

12..Supplies for military requirements oitlicr fnr camps or, transports to bo classed as locally supplied butler,

TABLE SHOWING THE F. 0.8. 10QUTVALENT PER POUND REALISED FOR NX BUTTER. IN BULK IN LONDON.

- Noto: Cost of patting, etc., for local market averages $d. per pound, which charge must be added to f.o.b. to get wholesale local parity prices. . Tho retail price under present conditions to be on a parity with f.o.b. prices would need to bo 3d. higher. The London wholesale price per cwt. is given first, with tho f.o.b. equivalent per lb. in New Zealand in parentheses:— 170s. (16.22), 171s. (16.32), 1725. (10.42), 1735. (16.52), 1745. (16.63), 1755. (16.73), 1765. (16.83), 1775. (16.93), 17Ss. 17.03), 1795. (17.13), 180s. (17.23), ISls. (17.33), 1825.' (17.44), 183s. (17.54), 184s. (17.61), 185s. (17.74), lS6s. (17.84), 187s. (17:94), ISSs. (18.04), 189s. 18.14), 190s. , (18.25), 191s. (18.35), 1925. (18.45), 1935. ' (18.55), 1945. (18.65), 1955. (18.75), 19as. (18.85), 1975. (18.96), 198s. (19.06), 1995. (19.16), 200s. (19.26), 201s. (19.36), 2025. (19.46), 2035. (19.56), 2045. (19.66). "ENTIRE DISAPPROVAL." VERDICT OF THE COMPANIES. At a meeting of representatives of tlio companies, bold after conference with the Minister and tlio Board of Trade, regarding tho schemo contained in tho report, the following 1 resolutions were passed:— "This meeting of representatives of dairy companies hereby places on record :—

"(1) Its entire disapproval of tho proposal submitted by the Board of Trado to limit tho selling price of butter within New Zealand, and to 'the principle of taxing tlio whole of the dairy farmers of the Dominion in order to make up tho differenco in price between the limit fixed and tlio current London market values, because such a course would be: (a) Economically ■unsound ; (b) a class tax; (e) an interference with the small farmers of tho Ddminion, who are at present hearing enormously-increased cost of production duo to the absence of many of tho members of their families in the fighting lines, the high price of labour which is necessary to replace those absent at the front, and to tho greatly increased cost of all farming requisites.

"(2) The fact that butter for export is to-day worth from Is. 6|d. to Is. 7jd., f.0.b., the equivalent of which for business in t!le Dominion, after meeting distributing and marketing charges, is Is. Sd. per lb. wholesale and Is. lOd. per- lb. retail for best qualities, as compared with the charge to consumers in Britain of about 2s. per lb., and because of which an increase on the local' market is not only justified fait necessary in tho general interests of the industry. "(3) That if any limitation of the price is deemed necessary, it is suggested that tho cost of such limitation should he a charge against the Consolidated Revenue, in support of which wo instance the precedent of the Imperial Government with respect to the increased Tate of wages of tho railway workers : » Great Britain." It was further resolved: —

"That a committee ho set up to watch over the, interests of tho producers in respect to the Government's proposes to regulate the local price of butter." The committee, comprising three representatives from lmtter and three from cheese companies, was sot up as follows:—Messrs. Morton, Powdrell, Pacey, Marx, Fisher, and Agar..