THE BUTTER DEAL.

Taranaki Daily News, 29 January 1919, Page 7

THE BUTTER DEAL.

DISSATISFACTION AMONGST PRODUCERS. THE QUESTION OF LufAt, SALES.

Some strong remarks were made at the meeting of directors of butter factories held at Inglewood on Monday, to discuss the question of a co-operative cusein factory, anent the alleged unfair treatment meted out to those factories in connection with the sale to the Imperial Government for the next two years, and particularly regarding the reduced price fixed for the Bale of butter on the local market.

When Mr Morton, who presided, referred to the object for which the meeting had been called, Mr Smith (Waitara Road) asked whether the meeting would he given an opportunity of going into the question of the sale of the butter output for the next two yoars to the Imperial Government. Personally he had no heart to go into the question of casein until some satisfaction was received regarding the sale of last season's output. If satisfaction was received he was prepared to go he-t and soul into the matter. The Chairman stated that-as there was some doubt as to whether the sale was a good one, ho proposed to give an opportunity to discuss it. Probably, if the discussion were taken, it would clear the way. All were familiar with the terms of the sale, as they had been calculated by the butter committee.

Mr J. H. Smith (Waitara Road) said that it would be remembered that some time ago a meeting of buttor factory directors was held in Inglewood and three delegates—Messrs Morton, Dingle and himself—were elected to proceed to Wellington to meet delegates from other i parts of the Dominion and appoint an executive committee with full power to ' act in the disposal of this season's butter to the Imperial Government. The delegates met and appointed a committee, "the members of which were given by the delegates, speaking figuratively, "a wall to put their backs against" in holding out for what was considered to be just dues. It was decided to give them a price, viz., 196s per cwt. f.o.b. (Is Od per lb.) with a margin of Id to come and go on, the minimum being fixed at 18Gs 8d per cwt. or Is Sd per lb. below which they wore not to sell without consulting the delegates. These price?, of course, carried the obligation to supplv local butter at Is 5d in bull; at the factory. Equalized, this would mean an average payment of Is 7Jd on the whole output (both export at Is 9d and local at Is sd), and basing cheese at lOd, the then price, 19Ca was considered a fair thing. The sale was made, or rather our representaties were bounced or bamboozled into accepting 181s for two years, and, as a matter of course they are expected to supply local butter at Is 6d for two years also. Sending delegates therefore appeared to be a huge farce, as the whole thing was apparently cut and dried before any committee 'was appointed. It appeared as though the butter committee had simply been used as tools in the hands of the authorities to assist them in their various schemes for the butter producers' detriment. The conditions of sale provided for the combined sale of cheese and butter. The Imperial Government would not give 10:] d for cheese unless they could get butter at 181s. Then, a«ain, they would not take more than SI per cent of the combined output. These were supposed to be Imperial Government's conditions, but he thought if they assumed that they were made at the instigation of the National Government here it would be nearer the mark. He also referred to the most unfair or scandalous way in which the butter producers were referred to, according to the public press reports, by some of the Ministers of the Crown, and he instanced the remarks attributed to the Hon W. D. S. MaeDonald, in speaking of the visit of the National Dairy Association delegates to Australia on behalf of the butter producers, also to the remarks of the Hon H D. Outline, which recently appeared in the press in connection with the equalization fund for last veai One would think the producers were a lot of rogues and criminals, instead of what they claimed to be, amongst the hardest working and most law-abiding citizens of the Empire As far as he had been able to gather there was vcrv grave dissatisfaction existing among the butter producers, who_ maintained that they had not got justice, let alone the fair deal they used to hear so much about. They felt they were sinoled out to bear the burden of helpinAo keep down the cost of living, and they claimed to be treated in no worse way than the meat people, that was to receive the equivalent of f.o.b value for local sales. (Applause) Mr Sangster asked what would have been the position if the Butter Committee had not accepted the offer? The Chairman: All knew what would haver happened . Mr Hickey (Opunake) did not think it was any use wasting time over the discussion They had accepted 181s and the contract was binding for two years Mr Smith said that he did not object so much to the sale at 181b. What he objected to was the sale at Is 5d per lo for two years on the local market Mr Hickey thought they might pUt up a fight on this point, as he felt they had been treated harshly _ Mi R Ts Williams (Inglewood) thought it strange that one of the delegates should complain The number Ihould not have been,cut m Wellington to two or three. The whole body should , have met the Minister... , ;i ■'•■' *■■ The Chairman said that it was impossible for all delegates to be present. Hi Wellington the representation was fixed on a tonnaie basis. Taranaki had no cause to complain , As a matter of. fact ' the output of butter in Taranaki was only about a fifth that of Auckland. \ct the latter agreed.to having only two • representatives to Taranaki's une, out of the executive of five that was chosen. Mr Yeates said that the delegates ''•■ were given a "back to the wall" price of 186s and should have consulted the committee again before accepting 181s. Regarding the local price, Mr Williams said he would like to know if the meeting was prepared to submit to this political bribery tax? Mr Morton said he understood Mr Smith's principal objection was to the sale on the local market All knew what took place during the past few years. All v>erc familiar with the butter-fat i.-vy and the fact that no notice whatever was taken of their objections when '..-■ proposals were discussed in a moder- . e way, nor to the'" -<trong protests ! afterwards. On the ' >ie Minister's return from Eugltim' " 'cputation of about 100, represent . dairying Industry from the Blui ■ North Cape, made strong repr <v,is to him. The l'Vme V ''"'l the P l- " 1 " «dj>le "* «•'« levy, hut made the position

worse than ever for the butter factories, because he would not allow factory butter to be retailed at more than Is 7d on the local market. The price at the factory door being fixed at Is 4d iit the •bulk. Later in the winter this was fixed at Is 5d at the factory and Is Sd retail, and it had been allowed to remain at that. The Government intimated that it would not allow any interference with that price, nor would it permit them to have a free market. They were now in war times and the Government had power under the War Regulations to fix the price, which affected other tilings beside butter, as for instance wheat. Even when the war was ended, he was certain legislation would be introduced to control prices. The National Government had been afraid of trouble with the working classes, and more particularly with the waterside workers, and recognised the necessity of restricting the prices to which produce might rise and so keep down the cost of living, the necessity for which was being hammered into them at all times.

Mr Colson: At the producer's expense. The Chairman said that the Government had the producers at them on the one hand to remove the restrictions, and on the other hand not only the working men, but others were at them to keep down the prices and they gave way to the latter. The position was an unfair one and he was no more willing to agree to it than anyone, but he was certainthat do what they would there was no redress. No harm would he done by passing a resolution of protest, but it would have no effect. The majority of the Cabinet were against them in this, as members of Cabinet recognised that other matters, which they considered of primary and supreme importance must be dealt with first.

W. Hall (Waitara) said that it was very seldom the small dairy farmer had an opportunity of expressing their opinions on these matters. They were the hardest worked section in the community. At present he worked 16 hours per day for seven days in the week. A lot was seen in the papers from the other side as to what greedy people the farmers were and how they wanted more than their rights, but they never saw in the papers what the farmer was doing. Regarding the clause that no more than SI per cent of the combined output of cheese and butter exported should be cheese, he considered that this had been inserted so that all would not go in for the manufacture of cheese and so leave the local supply of butter bare. That was arbitrary. Everything had been shoved on to the butter man, who was the hardest worked in the country. The clause said they would not take the cheese without the butter, yet it was said the Imperial Government did not want our butter. Despite this they had taken all last season's butter and Borne of this; while some of last years cheese was still in store. He thought they had been made a political catspaw because they were the smallest producers. When they asked lfl(is for their butter they were not asking more than their due, because, according to the Imperial Government's own statement, their butter netted 101s last year. The butter producers last year had given the Imperial Government £340,000, and, in addition, they had given the local consumer about one third of that amount. There had been a terrible squeal about the butterfat levy when it affected the cheese, but now it had all been pushed o:i to the butter producer, who must not squeal. He. for one, was prepared to squeal. He was not going to sit down and take what the Government would like to give without saying anything.

Mr Williams remarked that the Government said it wished to protect the working man, and he would like to point out the average working family used 31b. of butter per week, which meant a saving of Cd. What about the lawyers, doctors, wealthy people and hotels Their saving would probably be 03 per week When the Government wished to give cheap meat to the cities they asked the Imperial Government to allow them to take the meat from the stores, and were given permission. They did not a3k the big graziers to give thorn Is 2d per lb. This was probably because the big giur.iers had influence. On present prices the reduction of %d per lb. butter-fe.t tax meant £1 per cow on the present prices, and as the average herd was probably 40 that meant a loss of £4O per annum. If that £4O were spent in manures and seeds, the production would be kept up, whereas now production was going down, which was a bad thing for tho country This was a very unfair tax.

In reply to Mr Eowler, tho Chairman said there was not the slightest cliance of getting the 2d made up out of the Consolidated Fund This had been put before Hons Allen. Hcrries and MacDonald, who said that there was no authority for it in constitutional law He thought that if one section of the community was to get its produce cheaper from another section of the community, then it was only right that tho Government should make good the differer.ee. They could make representation to the Government, but it would be futile.

The Chairman pointed out that all sections of the community had made sacrifices The meat men had made bigger sacrifices than the dairymen, having lost millions, as they only received a certain price and immense profits had been made at Home.

A delegate could not see why the cheese people, who received 10|d for their export cheese, were allowed to charge more on the local market, whilst the butter people could only sell for less. The Chairman said that cheese could be purchased for the local market for less than lOijd Moreover, consumption of cheese locally was a negligible quan-j tity. Many families never had cheese/ in their homes \ .Mr Williams pointed oi\t that the gra-j ziers' profits had not been interfered! with at this end. / A delegate considered that if they go| 181s for all their butter they were makjt ing bigger sacrifices than the meat merl, because they were not getting the pricle received on the London market. Tae price received for local consumption was the sore point. ! The Chairman: I'm afraid you're «p against it J Mr Smith said that during the wot the- f >u-icrs had done their best to wiA the v..iv. but now the war was over they) were inclined to kick against the injua- ' tice. They should make a strong pro-1 test, and though they were only a small body oT men, they might make c, big noise. There was one alternative, which he did not favor, and that \vals to ediul all their butter to the freezing Works and throw the onus of distribution on the Government. He then moved: That this representative meeting of butter producers of Taranaki, being fully convinced that we are suffering a very grave injustice in the matter of the price of butter for local sales, respectfully ask that the injustice be removed Infixing the price for loci' ; flier, at f.o.h This wan seconded i "r lliilli| 1!: (Pirnifrird.l • Ml- HJI said that in order to nave the

working man Cd per week ho was paying £1 per week. They should squeal iv bit, otherwise further injustice would be shoved on to them. The Chairman said the Imperial Government were the greatest profiteers ol' all. The resolution was carried, Mr Williams remarking that he would like to r,ee a clause added to the effect that if they did not get satisfaction, they would be prepared to fight it out. The Chairman said that he did not know where Mr Smith had got tile impression that the Butter Committee had given the executive a definite limit of 184s 8d as a minimum. The resolution appointed them to act in the best interest of the industry and did not limit Hie price. Whether political influence was at work or not, he did not know, but he denied that the Butter Committee were ever made use of as tools. They tndeavoTed to do their best in the interests of the producers of the Dominion. No pressure was put on the committee by any other branch of the industry or by the Government, but they were certainly told that the Government would not allow any variation ot the local price. In considering the conditions of the deal, it must be remembered that they could only deal with the Imperial Government, who had just concluded an agreement with the Australian Government to purchase their output for r term of two ytars at 175s per cwt. This effectually closed the committee up and left theni no option of getting any bettor price than was offered. The Committee got Gs more than Australia and had to make the term the same, viz, two years;. As far as the price was concerned, he thought the second year was the best, and that the Committee had acted wisely in making the term two years. In dealing with the question of combined output it wtfs found that last year of the butter and cheese exported 78 per cent was cheese. This year the Imperial Government had added 5 per cent., so that not more than 81 per cent, must be in cheese. Thip did not affect the total output, and thwre was not the slightest fear that th,e SI per cent would be reached, for j though we were making comparatively little butter in Taranaki, the immenrje increase in the Auckland province would ensure that the quantity of butte'.s would be well up to that of previous