THE PRICE OF BUTTER.

Manawatu Herald, Volume XLIII, Issue 2277, 17 May 1921, Page 1

THE PRICE OF BUTTER.

DEPUTATION TO MINISTER

Christchurch, May 15. Messrs McCombs, Witty, and Sullivan, M’s.P., waited on the Hon. W. Nosworthy yesterday, and pointed out that the high price of butter was a serious factor in working-class homes. Mr McCombs said the deputation represented the consumers, and they were concerned because the Government had not taken action to protect their interests now that- the world's market price for butter had fallen. In the course of his reply, Mr Nosworthy stated

definitely that there would be no

change in the price till the end of ... August. He said that although he was personally against the subsidy business, which had commenced in the war'period, during the term of the National Government, the deputation must recognise that once the Government got "imprisoned” with the subsidy principle, it was

not very easy to get out, and the

principle underlying the whole thing was to make the best deal the Government could for the winter out-

put from the factories, to assure the people of a supply up to August 31st, and then to terminate, once and for all, the subsidy arrangement. “I quite recognise,” continued Mr Nosworthy, “that the facts you have brought before me arc from the point of view of your own fonslitueneios, but it must be remembered that if it bad not been for the export of butter and cheese from this Dominion for Iho nine or Ini months just ended, we would have been very much worse off. Butler has virtually saved ibis Dominion,'''

Mr Witty: We are noi grumbling.

Mr Nosworthy: Instead of partial unemployment, there might easily have been total unemployment in not one section of (he community, but in all sections who are affected by the slump that has taken place. I. for one, am quite prepared to take the responsibility for. what was done, because it was done after mature, deliberate consideration and prolonged negotiations. The Government has taken steps to assure winter supplies up to the end of August, and then will come the free market that I believe in. We have entered into a contract between the Government and the dairy producers, and it is not the slightest use appealing to me or to the Government for any breach of that contract.

Mr McCombs: When did you enter into it?

Mr Nosworthy: At the end of March, when there wajs not the slightest whisper of' any collapse in the outside market. The Government. arranged for the price to lie as low as possible, and did its uU most to give the people reasonable winter supplies. After August 31st there will be no interference by the Government in the trend of prices, and, as far as I know, the price will be governed by the world’s markets. Mr McCombs asked whether the Imperial Government had not offered to re-sell a. portion of its purchase to New Zealand at 175 s per cwt, which would mean a retail price of about Is Gd.

Mr Nosworthy replied that tiie Imperial Government had stated that it did not wish to sell tiny of the surplus butter for local consumption in New Zealand.