THE BUTTER PAYMENT.

Taranaki Daily News, 6 November 1919, Page 4

THE BUTTER PAYMENT.

ORIGIN OF THE SCHEME.

STATEMENT BY THE PREMIER,

(By Wire.—Own Correspondent.)

Wellington, Last Night. In the House to-day the Hon. W. D. S. MaeDonald blamed the Hon. J. B. Hiue for his recent statements in Taranaki legarding tlie butter equalisation fund. He aa id that as Minister for Agriculture in the National 'Government he had not been responsible for the agreement for the second butter equalisation fund, to which Mr. Hine had replied that an agreement had been made between the butter producers and the Prime Minister.

Mr. Massey: I was in England. Mr. Hine: That was the whole point of my remarks.

Mr. MaeDonald: Cables were sent to Mr. Massey on the subject. Mr. Massey; To let me know. I was very muck surprised, as a matter of fact.

Mr. MaeDonald said that lie would accept his share of responsibility for the equalisation scheme or butter-fat lew but he would point out that the scheme was accepted by Sir James Allen, then Acting-Prime Minister, and other members of the National Government while Mr. Massey and Sir Joseph Ward were away in England. The Prime Minister said that when he and Sir Joseph Ward left for England in August, 1914, there had been no talk of any equalisation scheme. He had been surprised to hear by cable from air James Allen about the scheme. He leplied by cable that he disapproved of the scheme and that he was sure it would operate unfairly. Experience had proved him correct. The chief fault in the scheme was that the lew was placed on the producer and not on the exporter. The stores in 1917 were full of butter, while beef and mutton had preference in space. Butter was selling at 1/2% per lb. The slapping situation improved and the middleman reaped a rich harvest. A deputation asked him to remove the butter fat tax and he replied that he did not approve of the tax, but something should be arranged instead of it. In the following season the purchase of butter by the Imperial authorities was arranged' at a price equal to the local controlled price, but with a provision for half profits. He thought then that there would be little or no profits on the sales, but butter rose in price and this led to some such Arrangement as the second equalisation scheme. He did not approve of that scheme, which put the whole load on butter. He bad never had anything to do with the making of it and ho was not responsible for it. He was glnd that the producers would come out of, it all right.

The Hon. J. B. Hine said he had been fully justified in referring to the,butter levy in his speech to his constituents. He had been replying? to statements mads by Liberal candidates in T.irannki. The National Government had forced the eoualisntion 'fund bv limiting tbe local price of butter. That wtis the whole fact about the matter.