PRICE OF BUTTER

Dominion, Volume 10, Issue 2906, 19 October 1916, Page 6

PRICE OF BUTTER

THE GOVERNMENT'S SCHEME

VALIDITY OF REGULATION

TO BE CONTESIED

Representatives of the producers, after discussing the proposals of the. Government lor the regulation of the prico of butter in Now Zealand, have decided to take action with the object of contesting the validity of tho Order-in-Council embodying tho_ Board of Trade's sclieme. A case will be stated, for tho consideration of tho Supremo Court as soon as possible, and it will, be argued, on behalf of, tho producers, that tho Government has 3io power !• cnforco tho scheme for the collection c a levy on all butter-fat, the money tc bo used to compensate factories thai may sell within Now Zealand below tho export price. The regulation, in tho meantime, is in force, and tho gentlemen selected to ropresent tho producers in tho negotiations with the Government have advised the factories to accept tho schema for the time being and apply for licenses in terms of the Order-in-Council, since otherwise thoy'will be unable to export butter until the Court proceedings have been decided. The Order-in-Council provides that no factory may export butter or cheese until it lias paid tho levy of three farthings per pound of butter-fat. Tho following letter was sent by the producers' representatives to the various dairy companies:— "Wo wore appointed to represent tho producers' interests in connection .with the Board of Trade proposal to regulate tho price of butter upon the local market. Such a •proposal involves an assessment over the whole of the but-ter-fat supplied to tho butter and cheese factories within the Dominion. A copy of the Gazette notice and n memorandum setting forth tho proposed means of giving effect to "the arrangement is being posted to-day to each dairy company by Mr. Triggs, who has been appointed the licensing authority under .the proclamation. These 'will fully explain the position to you and to elaborate here is not necessary. After considering tho proposition and its bearing upon the several and varying interests represented, and after taking legal opinion wo liavo decided to contest the validity of tho Order-in-Coun-cil. Meanwhile, tho provisions- of the proclamation are in force and we adviso the dair.y companies to forthwith make application for their licenses: otherwise serious trouble and.delay may arise in connection with shipments per steamer due to leave shortly. We understand that if tho.Vproclamation is found to be'ultra vires the licenses will be come inoperative. Wo also recommend to dairy companies which do business upon the local market to sell their butter at a rate to retailers corresponding with not moro than Is. 7d. per lb. to consumers, and to maintain supplies for.their usual business during the short time before the decision will likely be made. Unless this is done the position will bo seriously complicated. If the proclamation is sustained we shall, in tho interests of the producers, deem it our duty to assist the authorities in making the scheme as complete and satisfaetory as possible. (Sgd.), Arthur Morton, Jacob Max, H. E. Pacey, W„ Fisher, W. D. Powdrill, C. P. Agar."