BUTTER-FAT TAX.

Taranaki Daily News, 7 December 1916, Page 6

BUTTER-FAT TAX.

LETTER FROM THE MINISTER OF AGRICULTURE, The' following is a copy of a letter received from the Hon. W..D. S. MacDonald, Minister of Industries and Commerce, by the Taranuki executive of the New Zealand Farmers' Union, in jeply to that body's protest against the butter fat impost:— I have to acknowledge receipt of yoi.r letter of the 21st ult. protesting aga'nst the Government's scheme of limiting the local price of butter and spreading the disadvantage thereby occasioned equally over th' whole indnsiry Similar protests have reached me from moat of the dairy companies. 1 have delayed replying to your letter pending the decision of the Full Court In reply, I would like to point out that the position that the Government \va.< faced with was this: The producers, distributors, and retailers met the Board of Trade and myself in conference in Wellington on the 3rd of October, w.th a proposal to increase the price of butter to Is lOd per lb. After giviiig the matter full consideration I came to the conclusion that in view of ill the circumstances such a proposal c.iuld not be entertained. 1 would also like to point out that your executive overlooks the cardinaj 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 of its citizens. The Government of New Zealand, in common with the Governments of other constituent parts of the Empire, has foi nd it necessary in the public interest to interfere with many branches of trade and industry with the object of mitigating in some degree tile suffering caused by the war. It is not correct, therefore, to say that the dairy industry has been singled out for special treatment; but when a necessary of life like butter threatens to reach famine prices in the full flush 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 th; supreme sacrifice from every family in the Dominion, 85 per cent of whom* find the high prices directly attributable to the war a heavy burden. I would .further point out that the coutribtttion to the equalisation fund viz, s<l per lb butter fat, is not a class tax, nor, indeed, a -ax of 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 evtremely high prices offering for export. The price fixed on the recommendation of the Board of Trt.de is high for summer, considerably higher in fact than prices realised in similar seasons in pre-war days, and should therefore occasion no real hardship to suppliers. I desire particularly to ensure your executive that the Government has no desire or intention of harassing farmers or other producers of the Domiioii, and I emphasise the fact that the action taken can only be regarded as a temporiirj war measure and as an honest endeavour to extend equity and justice to every section of the people, all of whom have shown great patriotism and loyalty in this time of stress and trouble. I feel confident that when the farming community has actual working experience of the scheme they will give their whole hearted support to the Government in the trying and anxious time through which we are passing. (Sogned) \V. D. S. MACDONALD. This letter will come before the next meeting of the executive.