THE BUTTER SUBSIDY.

Hauraki Plains Gazette, Volume XXXIII, Issue 4377, 13 February 1922, Page 3

THE BUTTER SUBSIDY.

CLAIMS OF THE WAIKATO. " MAY HAVE BEEN OVERPAID.” TROUBLES OF THE AUDITORS. The position with regard to the New Zealand Co-operative Dairy Company, Limited, and the unpaid portion of the Butter Equalisation Fund was detail-; ed in a statement which the Prime Minister made in the House of Representatives last week. Mr Massey read a copy of a communication forwarded by Mr T. R. Lees, Controller of tne Department of Imperial Government Supplies, ,to Mr A. J. Sinclair,, of Hamilton, acting manager of the company.- The letter was, as follows: — “ Attention has been drawn to your statement at Morrinsville, as repprted in the New Zealand Herald of February 4, that £50,000 was . still unpaid by the Government in connection witn the butter equalisation scheme and at which meeting a resolution was carried requesting the Prime Minister to expedite the payment of the £50,000 referred to. “You are of. course aware of the very unsatisfactory position which the auditors have reached in connection with their attempt to ascertainthe amount which’may be due to your company No reconciliation statements of any kind for the 1920-21 season have yet been made available by your company for the auditors' investigation, and, in spite of the very long time which has been spent by the .auditors on the books of your company, a deadlock has been reached. “Very great consideration has been given by the auditors to the difficulties under which your company has been working, but it is impossible to allow the statements which, appear to have been made by responsible officials of your, company to pass uncorrected, as the Government is not in any way responsible for the failure of your company to obtain .'a final settlement of the butter subsidy. “The auditors report that so far as the investigation already made' can foretell no" sum approximating £50,(W 1 will be payable tv yuus company, an. it is even possible that the companj has already been overpaid. I feel that in view of the auditors’ very strong representations w me I cannot continue to take the 'wfcple responsibility of this matter, d,nd I propose to ask the Minister in charge to request the Controller and Auditor-Gen-; eral to make a statutory investigation of the company’s affairs, as he possesses powers which are not held by this Department to compel the production of the neecss,ary statements.”

Mr Massey said that letter was dated February 6. All that he could ,say was that as soon as tlhe auditor was able to say what was owing the money would be paid over. Mr H. Poland (Ohinemuri), who had previously asked several questions on this subject, said he thought the dairy farmers would be very grateful to the Prime Minister for milking that statement because they wanted that money and the farmers should know who was responsible for it. '

STATEMENT CHALLENGED. PpSITION OF THE COMPANY. Referring to the statement made in the House by the Prime Minister regarding payment of the butter subsidy, Mr T. L. Hames, secretary oil the New Zealand Co-operative Dairy Company, Limited, said the statement of the Department of Imperial Supplies was an extraordinary one, seeing. that the .audit of the company’s butter sales was at present incomplete. To say that the company might have been overpaid was ridiculous. The company's claims for subsidy amounted to a considerable sum, against which progress payments had been made. A considerable portion of the claims, however, was still outstanding, and would be paid only on completion of the audit. In the interests of all concerned it was very desirable to finish this work as soon as possible, but the company felt that the Department was not giving the assistance that might be expeced. Mr Hames said it was his intention to go tq Wellington th personally take the matter up with the Controller at the. earliest possible date.