PRICE OF BUTTER

Southland Times, Issue 18848, 14 June 1920, Page 6

PRICE OF BUTTER

THE GOVERNMENT'S ACTION. DEFENDED HY THE PRIME MINISTER. (Per United Press Association.) WELLINGTON, June 12. Sir Massey, replying to Mr Goodfellow’s criticism of the Government action in retaining 200,000 boxes of butter in I lie Dominion as a means of competing against the new season’s make and so keeping the price below the cost of production, stated that 50.000 boxes of this butter had been sold to the Impe;i:d authorities, and will be sh ; pped away. “Last .season,” says Mr Massey, “the usual custom was followed rind it was thought sufficient had bee.n returned in the country for our own requirements, but as a matter of fact the quantity kept was exhausted some considerable time before the end of winter and as a consequence, in the late winter and early spring there was something approaching a butter famine. This season the department have kept back more than the usual quantity so as to avoid a similar difficulty to that which was experienced last year, but where Mr Goodfellgw goes wrong is in saying that the Government intended to appropriate the butter in store now for the purpose of supplying the local market in competition with the new season's make. That is not what is intended at all. Mr Goodfellow mentions that prices in England are very much higher than prices in New Zealand. If this statement is correct and any considerable balance of the present season’s butter remains tit the end of winter that balance will probably be used for the purposes of supplying the local market but the effect of doing so will, according to Mr Goodfellow himself, allow next season’s make to he placed in a better market at a higher price. I am surprised at a keen business man missing this very important point.” After assuring producers that the Government had done everything in its power to promote their interests right through the war period. Mr Massey continued. “What is being clone at present so far as the local market is concerned is this; For a considerable time past the price of butter to local consumers has been kept at a reasonable level by means of an equalisation fund voted by Parrliameut. The same procedure will continue as far as butter prndused during the currency of the existing contract with the Imperial Government is concerned. This contract terminates on July 31 and as the season’s butter making operations is now ended the quantities avail-

able for local consumption can be quite accurately determined and these quantities will be sufficient to supply local needs for some lime to come. The price to the producer will be the same as has ruled throughout the season, but owing to additional charges which have to be met the price at which butter will Ixt issued to distributors has hail to be increased from 1/5 per It) ex factory door to 1/5 Id ex store or f.o.b. coastal steamer, but the producer receives with the Government subsidy. Is 7-Id."