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Hokitika Guardian, 26 May 1932, Page 4

In view of the many discussions on tho outcome of the approaching Ottawa Conference it is interesting to note that the Dairy Produce Sub committee of tho Imperial Conference. 1930, reported that the total quantity of butter consumed in the United Kingdom from all sources was 12 per cent, from the United Kingdom, 37 per cent, from Dominions, and 51 per cent, from foreign countries, The committee considered the possibility of app ying to butter a scheme similar to one proposed by the committee on economic co-operation in relation to wheat and flour, designed to ensure that certain minimum proportions of the total United Kingdom consumption should he of United Kingdom and Dominion origin. In the butter trade, however, there was no process analogous to that of flour-milling through which all supplies of wheat for human consumption must pass. The committee considered whether it would l)e possible to exorcise the necessary control over the wholesale distributor, in place of the importer, but it found many difficulties. If these could he met it was conceivable that a quota plan would be capable off: (a) Enabling Dominion butters more efficiently to pentrate northern markets in the United Kingdom; and (b) at least ensuring a market for Dominion butters and probably increasing the consumption of such butters in the United Kingdom. The committee also examined the general principles under which a n import board might possess a monopoly of the purchase of all butter or other commodity (whether produced in the United Kingdom or imported), intended for consumption in the United Kingdom, the existing distributors continuing to function as agents of tho hoard. Apart from the precedents established in Britain during the war period, there were precedents in European countries for the establishment notably in Norway and Switzerland as regards wheat, and more recently in Germany as regards maize. Tt was e timated that a standing credit of about £5,000,000 would be necessary to operate an import bonrd for butter alone, allowance lining made for United Kingdom supplies. Further, where any partiexpnr commodity was in competition with or closely allied to another — namely, butter with margarine or butter to a cheese—it was possible that a monopoly could not he effectively administered without extending >t to related products. From a financial standpoint, there wn« the over-riding risk of final• -.ini loss due to noncommercial influences such as poMtienl pressure whether in the United Kingdom or overseas.