BUTTER PRICES.

Manawatu Herald, Volume XLII, Issue 2151, 17 July 1920, Page 3

BUTTER PRICES.

PRESENT AND PROSPECTIVE,

A BIG GOVERNMENT BILL

In view of the present disturbed state of the public mind in regard to the increased cost of Jiving, Mr G. Mitchell (Wellington South) asked the Prime Minister if lie would slate that the Government intended in the event of export prices going higher to maintain the supply of hotter at the present prices by payment from the Consolidaled Fund, at any rale until a more settled state of affairs obtained.

The Prime Minister said that the butter output available for export for the remainder of the season had been purchased by the Imperial

Government at 181 s a cwt. - Tlmt would not allow of butter being-sold at the present price without the Government making up,the difference between the export and local market values by a payment equal to 2d per lb. to the producer. He was informed by the Treasury that the cost of this subsidy this year would be £200,000', which was greater than last year, and indicated a greater consumption of butter, which was not accounted for except, by an increase in the population. He could not say what would be the export Value after 31st July. It appeared tolerably certain that the price of butter in England would be higher than for the present season’s out- — put, but as to Avhat if would be there was a considerable difference of opinion among those who were sup-, posed to know the position. It cost Did to market a pound of butter in England, and this had to be taken into account in arriving at the price for New Zealand. Until they knew what the world value of New Zealand butter would be it was impossible to say Avhat Avould be done ‘ here. He hoped they would be able to devise a system which would enable supplies to be available for consumers without doing injustice to the producers. •