THE BUTTER-FAT LEVY.

Stratford Evening Post, Volume XXXII, Issue 10, 6 December 1916, Page 7

THE BUTTER-FAT LEVY.

LETTER FROM THE MINISTER OF AGRICULTURE. The following is a copy of a letter received from the Hon. \V. 1). S. MacDonald, Minister of Industries anti Commerce, hy the Taranaki executive of the New Zealand Farmers’ I nion, in reply to that body’s protest against the butter-lav impost:--1 have to acknowledge receipt oi your letter of the 21st ult. protesting; against the Government’.-, scheme of limiting the local price of hotter ami spreading the disadvantage thereby occasioned equally over the whole industry. Similar protests have reached me from most of the dairy companies. J have delayed replying to your letter pending the decision of the I'nil Court. hi reply, 1 would hive to point out that the position that tic- Government was faced with was this : ihe producers, distributors and retailers mm the Hoard of Trade and myself in conference in Wellington on the hi d oi October, with a proposal to increase the price of butter to Is LOd per 11). After giving the matter lull consideration, 1 came to the conclusion that in view of all the circumstances such a proposal could not be entertained. J would also like to point out that your executive overlooks the cardinal fact that the Empire is passing through the most critical stage in its history, that its existence is at stake, and that it can only be preserved by the willing sacrifices ol its citizens. The Government of Now Zealand, in common with the Governments ol qther constituent parts of the Empire, lias found it necessary in the public interest to interfere with many branches of trade and industry with the ooje. of mitigating in some degree the sintering caused by the war. it is not correct, therefore, to say that the dairy industry has been singled out lor special treatment) but when a necessary of life like butter threatens to reach fa-mine prices in the full Hush of the season, the Government could not, stand aside and do nothing to protect the consumers, especially When, at the same time, they were making the supreme sacrifice from every family in the Dominion. So per cent, of whom find the high prices directly attributable to the war a heavy burden.

] would further point our i.urt the contribution to tlio equalisation fund, viz;, ;Jd per lb butter-fat, is not a class tax, nor, indeed, a tax oi any description, as its object is not to enrich the Treasury, but to compensate those factories that in the past have voluntarily supplied the local market at a considerable disadvantage to themselves—a position they could no longer undertake on account of the extremely high prices offering for export. The price fixed on the recommendation of, the Board of Tratio is high for summer, considerably higher iu fact than prices realised in similar seasons in pre-war days, and should therefore occasion no real hardship to suppliers. 1 desire particularly to assure your executive that the Government has no desire or intention of harassing farmers or other producers of the Dommion, and I emphasise the tact that the action taken can only he regarded as a temporary war measure and 1 as an honest endeavour to extend e piity and justice to every section of the people, all of v.him have shown g-cat patriotism and loyalty m this time oi stress and trouble. 1 feel confident that when the farming community has actual working experience of the scheme they will realise its essential fairness and they will give their whole hearted support to the Government in the trying and anxious time through which we are passing. (Signed) W. D .S. MACDONALD. This letter will come before the next meeting of the executive. ■