BUTTER RESERVE.

Taranaki Daily News, 14 June 1920, Page 5

BUTTER RESERVE.

MR. MASSEY'S STATEMENT. By telegraph—Press Association. Wellington, June 12. Mr. Massey, replying to Mr. Goodfellow's criticism of the Government's action in retaining 200,000 boxes of butter in the Dominion as a means of competing against the new season's make, so keeping the price below the cost of production, states that 50,000 boxes of this butter have been sold to the Imperial authorities and will be shipped away. Last season, says Mr. Massey, the usual custom was followed and it was thought sufficient had been retained in the country for our own requirements, but as a matter of fact the quantity kept was exhausted some considerable time before the end of the winter and, as a consequence, in late winter and early spring there was something approaching a butter famine. This season the Department. has kept back more than the usual quantity, so as to avoid a similar difficulty to thtit Which was experienced laßt year, but where Mr. Goodfellow goes wrong ip in saying the Government intended to appropriate butter in store now for the purposes of supplying the local market in competition with the new season's make. That is not what is intended at all. Mr. Goodfellow mentions that the prices in England are very much higher than the prices in New Zealand. If his statement is correct and any considerable balance of the present season's butter remains at the end of the winter that balance will probably be used for the purpose of supplying the local market; but the effect of doing so will, according to Mr, Goodfellow himself, allow the next season's make to be placed in a better market at a higher price. "I am surprised," said Mr. Massey, "at a keen business man missing this very important point." After assuring the producers that the Governtnent had done everything in its power to promote their interests right through the war period Mr. Massey continued: "What is being done at present to far as the local market is concerned, ia this. For a considerable time past the price of butter to local consumers hat been kept at a reasonable level by meanß of the equalisation fund voted by Parliament. The same procedure wiil continue fioW so faf as the butter produced during the currency or the existing contract. Which terminates oh July 31 Attd, as the season's butter-making operations have now ended, the quantities Will be sufficient to supply local needs for some time to conie. The price* to the producer will be the same as ruled throughout the season bnt owing to the additional charges which will have to be met, the price at which the butter Will be issued to distributors has had to be increased from Is 5d per pound ex factory door to Is Sy t i ex store, or f.o.b. coastal steamer, but the producers receive, with the Government subsidy, Is 7Jd.