LEVY ON BUTTER-FAT.

Taranaki Daily News, 17 January 1917, Page 3

LEVY ON BUTTER-FAT.

DAIRY COMPANIES PROTEST, Whangarei, January 12. A representative meeting of delegates from North Auckland dairy companies was held at Whangarei 'his afternoon to consider the matter of the levy on butter-fat. It was unanimously , resolved: "That this conference of dairy companies most emphatically protests against the interference with the price of butter in this Dominion, and against the imposition of the tax, recently levied, of 2d per lb of butter-fat, 011 tho following grounds: (1) That it ia a dangerous policy to take the earnings of one section of the community and pay the same to another section; ("2) that the impost is economically unsound, in that it interferes with the law of supply and demand, which operates in such a way that when «anv commodity is in short supply prices rise, stimulating production and economising consnmp-, tion, with the natural result that prices . again recede; on the contrary, 11.e limiting of the price and the Mitter-fat levy will tend to restrict production, I which is not to be desired in a produc- J ing country; (3) that the price of but- ; ter is not excessive when the facts are taken into consideration that lutter is a highly-concentrated food, and requires skill in production and manufacture, and that the earnings of dairy farmers and their families do not compare with the •jarnings of those engaged in other callings; (4) that many consumers o, butter, having large incomes, r.re ; i a position to pay the increased price of butter; (5) tliat dairy farmers are already bearing their full share of the increased cost of production, as well as 'increased taxation and higher (tost of lining, the cost of materials used, md also of labor having risen very considerably; and, in spite of increased taxation, public works rotes have been stopped, w'li.'h is a great set-back to the. North, as roads, etc, cannot be proceeded -vith and kept In repair which means a further tax on the dairy farmei to enable cream and milk to be taken to tlie factories; (01 that until the Order-in-Council is repealed, in view of the fact that is almost impossible to abtian shipping, space for butter and cheese, and the prospects for the near futile seem even morse, the Government be asked to apportion sufficient space to allow export butter to leave New Zealand thin a reasonable time, and that this meeting deem?, it anfair, while unshipped produce is in store and cannot be realised en, to require the payment of the, levy should it be due, compelling companies to pay interest to banks not only on advance's but on the levy itself." The conference further resolved: 'That this conference lias no objection to taxation levied for war ourposes"