The Cheese Output

Horowhenua Chronicle, 5 July 1916, Page 2

The Cheese Output

I-IXLVG I'liiS f'MOE l'Otil THIS QOVEiINMENT. On Friday last (reports the Aianawatu Times) a meeting attended* by tlio directors of six cheese factories was held in Ifiketahuaia., tor the purpose ot discussing the proposed purchase oti cheese by the N.Z. Government for the imperial authorities. < .Mr. Wise reported on the recent meeting, held at l'alnieistoii. He said "it was madie clear that the Government hlad no intention of oonimandeoring tho cheese. Tho factories were ibeing asked to put a price ou the output; tho Government would then accept or reject it. At the conference Turanaki proposed that half of the output be offered to the Government at oighitipence or the whole at BJd. -Mr. Wise moved as an amendment tlvat ha*.' of tlie output be offered* at BJd or the whole at 9d per pound. The junendnienit was clearly carried, but it was declared lost, some Soutli Island votes being counted aglainst amendment." Continuing hie remarks, Mr. Wise saidi that in asking th© conference to fix this price he had done so after careful consideration and witlw due regard to tho sniiall farmei. 'Inking a man milking 25 cows and with an average of H)oliUb of butter fat tho return wwuld haive been £233 Gs Bd. The rciturn at pre-war prices (ls8d) wouldi have boen £333 6s Bd, • leaving a difference of war profit of £101). But against this had to be Bet 'the war taxes, etc., £50 increased cost of living and goods £20, aind increased cost of labour £10, with £10 for increased cost odf farm materiiai, nuking £90 in all. The £10 remaining would be swallowed up in incidentals. Uuless a tar price was obtained for the cheese (that wao to say, a fair market price) the dairy farmer would be getting a less return (net) than pre war prices gave him. Selling at 8d the farmer would not be getting to his prices (lees charges) before the war. Be thought the most that could be don© was to offer, tho Government the output at a id less that the market price, and this wou'i.l leave a 'email profit to the farnierr The Britiuh Government had \aliowed 30 per cent extra in commandeering the wool; and the cheese liMiiufacturer could not afford to out | all profit out and provision-:for the future. If they tsold to tho IJiritish . Government at' 10 per cent.

below market rates the British. Government would receive half a million by the deal, and the dominion Government would lose a quarter of a miliion «i»i taxation in lost war profits. If necessity arose, farmers would, he believed, gladly give up 75 per cent, of their war profits but this should apply to nil classes of -produce, and not cheese alone (hear, hear!) His amendment at Palnierston had been declared lost, and the statement was made there that the small farmer wouldi be exempted iroiii the tax on war profits. I'lolll information 110 had gained, he though* tnoro would be 110 exemption. He went oil to criticise the National jjuiry Association in connection with the .meeting at Palmereton. The meeting was a confidential one, and yet. the newspapers had obtained a. report. '1 ho report was inaccurate; it atateH, . , Tiiat a decision was readied that never was reached. Mr. Boyes thought Mr. Wise had

quoted expenses thait were below the mark—in liis hypothetical cases. Other members agreed. Continuing, Mr. Boyes said that last year factories provided one third of. their output for the Government. But the whole output was insufficient to supply needs. Information reached the "bears" on the Home market, with the result that prices were advanced, and the Imperial Government' had to- pay these prices in order to obtain the balance of the cheese it required. Thus no economy wae effected, and the only-result was that the money was taken out of the pockets of New Zealand- producers for benefit of other producers. If all the Canadian manufacturers, all the manuI facturers within the empire, were put oil'the same footing, it would not bo so badi. He thought the meeting at Palmerston was a cut and dried arrangement. Mr. Manser moved that the meeting recommend tho acceptance of the prices embodied in Mr. Wise's amendr ment submitted to the meeting at Palmers ton. Mr. Boyea seconded. Mr. Wise explained the position in regard to the different prices. Selling half to the Government for BJd. and consigning the other half meant an average of 9d per lb. That was based 011 the probable market price in London

After further discussion, Mr. Burton remarked: "Lot's take BJd for half of our output. If the Government wiX undertake to ship our half we will get better results." Mr. Burton moved accordingly, but got no seoonder. Ilhe Chairman said he wias satisfied that the Government was not going to he diotiaited to in regardi to shipping for the factories. It would not be tied down in that fashion. 'Mr. Shirley moved aa amendment ! "That the price he fixed at B|d." Mr. I Judd seconded. The amendment was I lost. Mr. Twentyman pointed out that un- ! der the proposedi new arrangement the factories would lose their London connection^ The original motion was then put and carried unanimously.