THE BUTTER-FAT LEVY.

Taranaki Daily News, 19 March 1917, Page 7

THE BUTTER-FAT LEVY.

IS IT SUFFICIENT? Some concern lias been expressed lately by persons interested in the dairy produce export "business as to how the (iovernmi-nt's butter-fat levy scheme is going to work out (savs- the Ilawora Star). The levy is collected to provide n fund from which producers who supply the local market at a price fixed by the (iovcniment can be paid the. difference between the local price and the export price. The rate of levy at first collected was three farthings per pound of butter-fat, the difference between the fixed local price of Is 7d per lb retail and the export price bciiitr estimated at 3d per lb. It was suggested that this dilfereuce would probably diminish, and that it would in consequence be possible to reduce the rate of levy. The reverse has been the case. Indeed, the export price of butter has shown an upward tendency ever since that time, until now New Zealand butter is worth in London 22-tg per ewt. It is suggested (says the Dominion) that the three farthings levy will not provide sufficient money to recoup tlie producers selling for the local market for their loss of profit, and that the Government may yet have to demand from the producers % heavier levy. The local supply price is to be raised by one ponnj per pound during the winter months of June, July, and August, and this increase, will go to reduce the difference between the local price and the price) obtainable for. butter for export.

A T\ r AIRARAPA RESOLUTION. By Telegraph.—Press Association. Carterton, March 17. At a meeting of dairy company representatives held at. Carterton to-day, the following resolution was unanimously passed:—"That this meeting of delegates, representing the dairy industry in Wairarapa and Bush districts, strongly protests against-the continuance of the butter-fat tax of %tl per lb, seeing that the prices now being eraliscd for butter on the British markets will return a price for butter-fat considerably in excess of the prices that will be returned to the cheese factories on the price being paid by the Government, and that ail milk suppliers bo strongly urged to bring pressure to heat upon members of Parliament for their respective districts, nob only to have the tax discontinued,- but to have the amount., already paid by the dairy companies refunded.''