BUTTER PRICES

Dominion, Volume 14, Issue 10, 7 October 1920, Page 5

BUTTER PRICES

COMMITTEE TO REPORT NEXT WEEK

OLD BUTTER ALMOST EXHAUSTED

(J'° r A mo Mm ' Rte r was asked yesterday afternoon by Mr. G. W. Fortes Hnrunm) whether ho could state when the committee which is hearing ovidonce in connection with determining the price to be paid for the new season's butter would report to the House. In view of the coming on to the market of the new season's butter, ami the increase of tho wishing to know when the report would be produced and tho price fixed. '«.» i. • Cy r * of T ecl the question to tho chairman of tho committee, Mr. J A. Nash (Palmerston), who said that J7 ?' ad Vestion had ten tfc.A. rh6 .? oSltl « n ! unfortunately, was that the evidence given by the various srn»T vf W*? ■>» * nt to thein for perusal. The latest information he had received from the clerk of tho committee ™ io T* of their statedone to date was being made available to tho members of tho committee. The committee had hoped to be able to report and he did not think that it would bo possibleto do so before next Tuesday. i v"!? ? t()r ? v - *hnokor (Christchurch East) quoted a letter he had received from Chnstchurch in which it was alleged that tho dairy companies were sending hundreds of tons of butter into cool store, and that if a census were taken it would be shown that there was no shortage as was declared. Ho asked if the Government would have a census of all the butter in cool store taken before the new prices commenced to oper-a-e, so that it might be known just what the position was. The Prime Minister said that instructions had already boen given that all of last season's butter must be sold at the old prices. Dr. Thacker: But if it is mixed with the new season's butter what thenP Mr. Massey said that, was a question to which ho was afraid ha could 1 not givo a satisfactory reply., The Department, however, had sufficient information in regard to the butter in the various stores in tho Dominion. So far as tho South. Island was concerned 1 , thoro was very little. In the North Island the new season had already opened. As soon as the committee had reported it would be possible to fix tho price, and the public would be supplied with butter iu the ordinary way. > Mr.. Sullivan (Avon) aßked if the Uovernment intended to protect the consumers from "exploitation" pending tho an--nounoament of the new butter prices. The price of butter in Obristcburch had advanced to 2s. lOd. retail.

Mr. Lee replied that inquiries had been made as to stocks of butter and instructions had been girsn that, stocks must bo eold at the'fixed prices and not at the new prices. Action would be taken if any breach of this instruction were shown to havo occurred.

Mr. Mitchell (Wellington South): What will be the position of tho peoplo who havo paid 2s. lCd. if tho Government decides later to lis the local price at 2s. P 'Mr. lea: You had better place tha* question on the Order Paper. SALES AT 2s. 10d. PER POUND. Stocks of last eeason'6 butter are practically exhausted, and with them disappears- last season's price. Some of the Targe distributing houses aro out altogether, and, belnjT forced to sell .now season's butter or nothing, prefer the former, and are intimating to thoir clients that from to-day butter will be 2s. 10d. per lb. (pending the Government's decision). One firm has advised its clients in the following terms.- "Whilst it is ,un. • derstood that, until any alteration by the Government as far as local butter is concerned, the new season's trading is free on the local market, still it is not difficult for anyone to concelvo that' no private distributor or trader ■ is likely to give a lead or take the onus of selling new season's butter at higher' rates than those now fixed' to the consumer. The fact that a Parliamentary Committee has been sot Tip to report to the Government n.iturally makes any docision in regard to local prices a Government function, especially a» tho export surplus has been sold at a price so very much higher than the last Imperial Government contract. Consequently, at present tho position of local trade is drifting a little, and. as the Government cannot come to an. immediate decision, there is talk of a temporary shortage, because factories feel impelled to await the final Govornmei I announcement befora attempting to market any of their new season's butter, that is the position to-day, and it can . not be called an altogether satisfactory one. It is admitted, however, that at the samp time the position presents many difficulties."