BUTTER EXPORT.

Taranaki Daily News, 28 July 1920, Page 5

BUTTER EXPORT.

QUESTIONS IN THE HOUSE. NO FURTHER INFORMATION. HOW WILL CONSUMERS FARE? (By Wire.—Parliamentary Reporter.) Wellington, Last Night. The future sale of butter to the Imperial Government, and the price that is likely to bo charged to the consumer of butter in this country, formed the subject on which questions were addressed to the Prime Minister in the House to-day. Mr. W. 11. Field asked whether it was correct, as reported in that morning's papers, that New Zealand producers were expected to supply the Imperial Government with the whole exportable surplus of butter at a price of 2s 2d per lb, and whether the Prime Minister was aware tha,t there was a ready market for New Zealand butter in America at a price of at least 2b Gd per lb, the freight to the destination being about one penny per

He also asked whether the Government would make it possible for the producers in this country to sell to the American market, allowing the surplus to go to tiie Imperial Government. He said that the Commonwealth Government had contracted to *pR to the Imperial Government, but had reserved to the producers the right to supply South Africa. Many New Zealand sellers were read}'. to sell to the United States, because the price in that country was better than that offered by the British Government.

Mr. Massey said that the present contract with the Imperial Government regarding butter came to an end this month. If the contract was not renewed, the producers would be free to sell their butter where they liked. If the contract were renewed they would have to sell the whole of their butter to Britain, and none of it in that case would be sent to any other market, but thor" would; be no commandeer while the present contract was in operation. Applications had been made to him on Several occasions to ship butter to Vancouver. and ho could not remember any ease in which consent had been withheld. He drew attention to the shipping difficulty, however, for the ships on the Vancouver and Sail Francisco runs had small cold storage space as compared with those trading to Britain. Mr. Massey had no doubt that the matter would be settled in the course of a few din s, and lie was glad to see , that public notice was being taken of it. Mr. Field said that it appeared from the newspapers that there was to be something in the nature of a commandeer. Mr. Massey said that there would be no enmnisindeer. The Secretary of State made it clear that the British Government could not allow butter to come into the British market without a certain amount of control as to price. He understood that the New Zealand Butter Committee was meeting in Wellington next day to consider the position, and they would all be interested to hear the decision made by the committee. Dr. Newman asked whether the Minister would take into consideration the fact that the people of this country would, under the new prices, have to pay 6d or 7d per lb more for their butter during the coming year, and whether so/no scheme could be adopted to give them more relief. Mr. Fraser also asked Mr. Massey to mnke a statement on the price of butter. Mr. Massey said he would suggest that the question be. withheld for some days, until lie had an opportunity of conferring with the representatives of the butter producers, but he wished the House to understand + tiat he would tolerate no scheme which would be unjust to the producers. The duty of the Government was to encourage prodnc<on. The Government had been fairly successful in keeping the price of butter for the consumer J down, without inflicting injustice to the producer. Dr. Newman: I ixm. not worrying about the producers; I am interested in the consumers, Mr. Massey: I have to consider both. Mr, Massey t repeated that production must he encouraged, and in this matter lie was especially interested as Finance Minister, and hoped to make a statement on the subject in the course of a few days. LOCAL PRICE OF BUTTER. PROBABLY 2s (Id a POUND. "As to what will be the effect of the increased price of butter at Home on the retail price here, that remains to be seen." saicl Mr. Harold Beauchamp (chairman of the Bank of New Zealand) to< a Wellington Times reporter. "I think we will see it at 2s 6d per f>ound, though I don't think that it will go higher than that. Since 240s per cwt. is about 2s 2d per pound, if we see butter under 2s fld per pound we shall be fortunate." The Government, rmggested the Times representative, might subsidise the producers so as to keep down the price of butter on the local market. "Yes," said Mr, Beauchamp, "it might. But, personally, I do not believe in that sort of thing."