BUTTER EQUALISATION FUND.

Taranaki Daily News, 15 April 1919, Page 3

BUTTER EQUALISATION FUND.

DEPUTATION TO THE MINISTER. A deputation, comprising Messrs J. H. Smith (chairman), W. Hall, Rowe, F. Loveridge (Waitara Road Dairy Factory), T. Buchanan (North Taranaki Dairy Company), Longstaff and Tunbridge (Taurutangi), waited on the Minister for Agriculture yesterday in connection with the Butterfat Equalisation Fund. They were introduced hy Mr. W. T. Jennings. Mr. Buchanan, who acted as spokesman, regretted that the Minister had stated some time ago that the dairy farmers of New Zealand were unpatriotic. The Minister stated that he had not done ao. He had said that it was not right of the Butter Committee to have gone to Australia, and he Baid so still. He quite realised that 95 per cent, of the Dominion was very patriotic, and had said so that morning. Mr. Buchanan pointed out that the butter committee represented the farmers. Hon. McDonald: Some factories refused to pay the expenses because they said they did not. Mr. Buchanan referred to the sale of the butter to the Imperial Government at 1575, plus half profits, and pointed out that, whereas Australia, which had sold straight out, received a gift of 19s, the New Zealand produce was, after several meetings, to receive 17s. This made 1745, whereas, he understood, the British Government sold the butter for 2525. He referred to the price for local butter being fixed at Is sd, and said that, while it was said that the dairy farmer exploited the public, his factory in 1915 hajd sold its butter locally at Is 4d, when its export butter realised Is sd. Fixing the price of local butter hit the backblocks settler very hard, a3 he could not make cheese owing to lack of roads. He pointed out that the English consumer was able to pay 2s 6d for hiß butter, and the New Zealand consumer should also be able to pay, as he was in a better position. He also took exception to the contract being | made for two years, pointing out that the committee was only given authority to sell for one year. He held that the butter farmer was unfairly treated in comparison to the cheese farmer, and held that the Government should have established a fund to bring the prices up to a parity, instead of penalising one section of the community. He also pointed out that, whfle butterfat had increased very little si\oe 1914, the cost of manufacture had increased enormously. Hon. McDonald pointed out that he had nothing to do with the sale to the Imperial Government. This was between the Imperial Supplies Committee and the Dominion Butter Committee. Mr. Buchanan said that the Minister was in charge when the butterfat levv was established. That was borne by the whole industry. Now the cheese people had placed the whole burden on the butter people, and the Glaxo people had an open market and escaped the'levy. The Btated that at the time his intention was to place the levy on all butterfat, but Glaxo was manufactured in very small quantities. Hon. McDonald stated that, besides supplying men, the farmers had produced, and it was this produce that had enabled New Zealand to keep going, Up to the present the produce had realised £98,000 for the Imperial Government, and this did not include any flax or any butter exported prior to 1914. He looked upon it as an unfair act on the part of the Butter Committee to go to Australia at a time when he had negotiations with Australia involving a large expenditure. He considered they had no right to take that step, though, no doubt, they were doing their best in the interests'of those who had appointed them. He pointed out that the price of butterfat in 1913-14 was Is 2d per lb, and the year the butterfat was introduced the butter realised Is 7id. He had nothing to do with the sale of the produce to the Imperial Government. His duty was to see that there was sufficient kept ,in the Dominion for local consumption, and thev had arrived at the stage now when there was not sufficient. He pointed out that there were now 0,000,000 carcases of meat in New Zealand paid for by the Imperial Government, and 480,000 crates of cheese, of which 90 per cent, had been paid for! When purchasing the wool the Imperial Government had estimated that it might not be shipped till after the war. Referring to the acute shortage of shipping, he stated that, in addition to what Mr. Massey was doing, he had been m communication with Sir Joseph Ward, and had succeeded in getting some boats' diverted from Australia. Regarding the equalisation fund, he pointed out that last year all butter factories, except two, agreed to it, and this year all had. The sale had been fixed up by the Butter Committee, and, if it had not the authority of the factories, then it placed the Government in a difficult position. He congratulated the industry on being represented by such able men on the Butter Committee, and he felt sure that in two years' time they would be satisfied that the two years' contract had not been a hardship. He did not know that high prices were altogether a benefit to the producer, as the cost of production went up, and, while their expenditure was greater, the profits were not proportionately larger. Prom the cables they could see that the prices of wool had been reduced. The slackness in the cotton trade was because consumers were not willing to pay the high prices. In conclusion, he said that when they had the whole facts he thought they would be satisfied with the prices received. Certainly neutral countries had got higher prices, but they had no obligation to the flag. Giving a free market was not always an advantage, and he pointed out that the farmers had been ri marantced 6s 6d for wheat, and, but for that, wheat would be 4s 6d and oats 3s 6d owing to the phenomenal yield this year and the fact that there was no market tor the surplus. He promised, to place the matter before Hon. Mr. Guthrie, as he was anxious to treat all fairly. Mr. Buchanan stated that his factories desired to hold to the agreement that any profit from the sale to the Imperial Government should be divided among the exporting factories. They objected to the establishment of an equalisation fund, as when the sale was first effected the local factories appeared to have an advantage of 5s 8d per lb and did not desire the equalisation fund, but as soon as it appeared that there would be a surplus to divide among the exporting factories they wanted to share in it He considered also that a threat had been used to force the butter to be sold at a certain price so as to get a good sale for the cheese, as it was stated that the butter was not really required by the Imperial Government, whereas the cheese was, This was shown to be 1 ffrog b I <*• to«t tiagt gl iht butter l