THE DAIRYMAN'S POSITION.

Taranaki Daily News, 24 January 1919, Page 6

THE DAIRYMAN'S POSITION.

DT THE BUTTER PROFITS . < (Waikato Tinm|i When the sale of last season's exportable surplus of butter waa made to tiie Imperial Government on account, tiie price fixed was 157 a per cwt, plus 50 per cent of the profits that the imperial Government might make on the distribution of bultur for civilian requirements. It was not generally believed at the time that there would be much, if any, profits, but there were, and they amounted, on the Imperial Government's showing, to £<580,000.0f titf, sum' £340,000 is New Zealand butter-makers' share. In view of what they think they should have received, fully 2s per cwt more tci place them on a parity, and especially as when it comes to butter-fat value they calculated that they are 5d per pound worse off than if their milk were turned into cheese at the price cheesemakers are rceiving for their produce from the Imperial .Government. However, the situation is accepted as it is, but Mr. T. G Brasch, secretary of the Butter Committee, takes exception to the following remark, attributed to the Hon. D. H. Guthrie, and appearing in the Post:—

"The delay in payment is entirely due to the attempt to obtain another 2s per cwt from the Imperial Government"

Mr. Braech states that the facts are as under:—-

On July 24 the producers, by deputation, asked Mr. Guthrie to agree to the establishment of an Equalisation Fund, wherobv local and export prices could be equalised.That is to say, the exporters voluntarily offered to share the price which they were to receive with the factories supplying tlie local market. After consulting the Solicitor-General on the matter, Mr. Guthrie said that he could only agree on certain conditions. The Butter Committee did ' its utmost to carry those conditions out to the letter, and,' whilst it wa3 not entirely successful, considered that as the position stood the Government could reasonably bo asked to agree to equalisation. On September 5 th» committee asked the ActingPrime Minister (Sir James Allen), the Hon. D H. Guthrie also being present, to agree to equalisation. As no decision was then reached, a similar request was made to Mr- Massey on October 28. On November 4 the Butter Committee was advised by letter from the Government that the matter was receiving the earnest consideration of the Government. On December 14 the committee again mei the Acting-Prims Minister, and repeated the request for a decision, which was promised in the near future. On December 16 a letter was written to Mr. Guthrie asking if * definite de?Uion had been reached, and a similar request made on January 4, 1019. The Government replied on January 8, and the decision was then only provisional; never at any time have the producers been advised that the Government's decision was held up pending the. producers accepting 17s per cwt as their sliofl of 50 per cent, in the Imperial Government's profits.

Mr Braseh conceded that the >~e\v Zealand producers considered they were entitled to the same payment as had been made to Australian producers—viz., 19s per ewt. Tliev were perfectly well aware that they could accept 17s at any time; hut as no decision had been given by the Dominion Oovernmenfc 011 the matter of the distribution of the profits, tliev considered, and rightly so, that immedinle acceptance was unnecessary.

Mr .Bras-jli, m conclusion, said he would like to point out that the butter producers were oniy receiving one-half the profits made on the sale of butter to the Imperial Government. The other half war. hmnjr retained by the imperial fioverament. In other words, the New /.■aland butter prr»l!i.->-,-4 wove inakiiisr a clear gift of £3-10,r;01 to the Imperial rioveiinneiit.