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New Zealand Times, Volume XLIV, Issue 10287, 23 May 1919, Page 3

Replying on Wednesday evening to representations made by a deputation from the Dominion Butter Committee (very fully stated in our report of tlho previous deputation to Sir James Allen and the Hon. W. D. S MacDonald), the Minister in charge of the Imperial Supplies Department stated that he had received numbers of letters from high financial authorities in this country expressing the strongest approval of the step taken by the Government in selling the wool, meat, and dairy produce, and so ensuring the stability of New Zealand’s finance in the most difficult period. The contract was made with the full consent of representatives of the butter producers of the whole country, and the contract was made in good faith by the Government on behalf of the producers. When the contract had been made the question arose as to how the local market was to be supplied, seeing that the price for local consumption was no.t so high as that for export. Ho had been pleased to find that the producers were willing to adopt this expedient of the equalisation fund. Now, after a season of cxperienco of the working of this fund, the dairy farmers were asking the Government to take the whole of the burden, and to compensate the sellers of the local market by making the payment out of the Consolidated Fund of the country. With regard to the Government subsidy to the flourmillers, ho added, the millers would have to produce their books to show all about their operations before being entitled to the subsidy. If they had made a loss, the loss would he made up. A member of tho deputation said they could produce their books to show that at the local price of butter at Is 5d they could not produce except at a loss. Mr Guthrie said tho deputation’s request would have to be decided by Cabinet, when he would express his opinion. He considered that if any levy had to bo made on any section of the dairy industry, it should have been spread over all sections. (Cries of ‘general assent greeted this remark.)