THE BUTTER OUTPUT.

Taranaki Daily News, 18 June 1918, Page 3

THE BUTTER OUTPUT.

DIVISION OF KNGLISII I'ROFri.W. POSITION OF L'KODUCEKS FOR LOCAL MARKET. The lively controversy over the butter levy of the 191-7 season will be remembered. This season the Government nvoidpil . the objectionable equalisation fund, but as circumstances turn out a serious position lias arisen through the failure to provide some similar arrangement, to compensate providers of butter in the New Zealand market for the lower price obtained a 9 compared with what they could have realised by export. It was arranged that the Imperial Government should take the New Zealand butter output at 157s per cwt, free on board, with a promise that profits realised in England, after paying all ex. penses, should be divided equally botween the Imperial Government and the New Zealand producers. Australian butter was bought on the same terms. There has been considerable speculation regarding the amount of divisible profits, Mr. Massey being of opinion that the sum would be trifling. However, Australians have been officially informed that their share of profits on the deal amount to 19s per cwt, consequently New Zealand exporters are expecting lit least an equal return. Though.. Mr. Guthrie, Minister in tharge of Imperial Supplies, was unable to-night to state the exact - :ifion, if New Zealand exporters gel • similar profit to Australians ''-.ictories wliicli provided 10,000 tons •■! butter for il"' New Zealand wintr- uurements at 157s per cwt, will 1<- "prty £200,000. Unless their prodr is included in the export arrangon- >t the 'Government will be faced with this <tcmand, or the alternative of paying similar compensation from the consolidated revenue. It is being severely criticised for, not making an early arrangement in anticipation of this disparity in prices to the disadvantage of New Zealand suppliers. Producers also wish to know why the amount of divisible profit was not indi- i cated long ago, seeing that all charges ■were well known and the retail English 1 price was fixed by proclamation.—Hawera Star's Wellington correspondent.