PAYMENT FOR BUTTER.

Taranaki Daily News, 23 October 1919, Page 4

PAYMENT FOR BUTTER.

COMPENSATION FROM THE ' GOVERNMENT. DIFFERENCE IN LOCAL AND- HOME VALUES. (By Wire.—Own Correspondent.) Wellington, Last Night. The announcement that the Government intended to repay to the butter producers the amount paid into the equalisation fund last season was made in the House of Representatives this afternoon by the Prime Minister. Mr. G. Hunter (Waipawa), chairman of the Agricultural Committee, reported that the committee had considered a petition from the butter producers asking for a refund, and recommended it to the Government for favorable consideration. Mr. Massey said the Government' had taken the matter into consideration. The producers of butter probably received a smaller return for their labor and capital than any other class of producer. Taking this fact into account, and also the fact that the public nad obtained butter at a lower price than the export value, the Government had decided to compensate the producers for the difference between the local price and the export price for the past season, and the necessary financial arrangements would be made. Mr. Witty (Riccarton): From an export tax or from revenue? Mr. Massey did not answer this question. » Sir Joseph Ward said he was glad to hear of the Government's decision. Ha had publicly urged that this should be done. The export price had been very high owing to the war, and it was onlyf fair that the producers should be compensated for their loss on local sales. What -was the total amount of money involved? Mr. Massey: About £170,000. Mr. Hunter Baid he thought the announcement that had been made by the Prime Minister would give universal satisfaction. Redress was to be given to one of the hardest worked and most underpaid sections of the community. The decision must commend itself to everyone who had the interests of the dairy industry at heart.