BUTTER PRICES COMMITTEE.

Manawatu Herald, Volume XLII, Issue 2183, 30 September 1920, Page 3

BUTTER PRICES COMMITTEE.

Wellington, Sept. 29. Giving evidence before the Butter Prices Investigation Committee this morning, C. B. Norwood, chairman of the AVellington Municipal Milk Committee, gave (lie following percentages of the increases between the periods January, 1919, and August, 1920 : Coal CO per cent., benzine 23.23, general labour 23, engine room 17, motor drivers 9.50, first assistant 26. The minimum wage at Hie city milk station was £4 Is per week, plus an allowance of one quart of milk per day.

]■]. W. Bennett (Wellington). representing the retail distributors of butler throughout New Zealand, stated that the overhead charges in the grocery business during the past 4 or 5 years had increased from 14 to 18 per cent. During the war the retailers' rate of proJit had been lower than they would have agreed to at oilier limes, and now they asked for a fair pro tit. The grocers’ profit on butter when the price in the early war period was Is 8d per lb. was 2d per pound. They now asked that when the price was 2s (id 'per lb. or thereabouts, the profit should have some relation to the expense of running the business, namely, a margin of 4d per lb. profit when the price was between 2s (id and' 3s. The gross profit they asked was between 12T and Id per cent, for cash, and from .15 to it) per cent, for booking and delivery. This margin was below the actual working expenses, in Melbourne, where the retail price of butler was 2s 7d lb., with an extra half-penny in each instance for booking and delivery, the cost to the grocer was 2s 2MI per lb. They would much prefer, unless they could make a profit of .121 per cent., that the distribution of blitter should be taken out of the bands of the grocers altogel her. B. G. Timniclifl'e. farmer, of Bedding, estimated the cost of production of lus butler tat at Is 5d per lb., without taking into consideration the. higher value of his land.

Peter Hanson, tanner, ol Kauwhala, stated that Ids expenditure was £740, us against an income of £O7O. If credit was given him for wages, interest, etc., tie was undoubtedly farming at a loss.