WHEAT AND BUTTER.

Taranaki Daily News, 13 April 1921, Page 5

WHEAT AND BUTTER.

ABOLITION OF SUBSIDIES. DEPUTATION TO PREMIER. At Wellington on Saturday a deputation of Wellington M.P.’s waited upon Mr. Massey regarding the price of wheat and butter, the abolition of the subsidies on which they urged. The Prime Minister said that there were differences of opinion as to the arrangements that should be made to do justice to both the producers and the consumers. He asked them to remember that right throughout the war the Government had endeavored to be fair to both sides, and had done them justice; if matters had not been handled with discretion and wisdom very serious difficulties would have been encountered, particularly regarding wheat. The reason for the increase in the price of wheat was that wheat-growing was going out of existence in New Zealand, on account of the greatly increased cost of (production. He ventured the opinion ' that it was impossible to buy any machinery used in the production of wheat for less than three times the pre-war value. In fixing the price of wheat they had aimed twelve months ahead. The price was arranged at a conference in Canterbury at the beginning of last year. No definite arrangement was then made, but the Minister for Agriculture later met the producers and the price now being paid was agreed to. DIFFICULTY PRACTICALLY OVER.

Turning to the question of subsidies, Mr. Massey said he quite agreed that they should be done away with. He was trying to do so without causing inconvenience. The subsidy in regard to wheat and flour had been reduced by two-thirds this year, making it necessary to increase the price .of the two- , pound loaf by Id. He looked forward to seeing the subsidy entirely abolished at the end of this year. A guarantee had been given to the wheat-growers of about 2s per bushel less for next season than was at present guaranteed, and probably after this year there would be a return almost to normal conditions so far as the price of bread was concerned. It required careful handling, however, and encouragement to 'the wheat * growers. If the Dominion had gone on depending on obtaining from two to three million bushels of wheat from Australia, a very firm price would have had to be paid in the event of a drought. He believed the position was now much more satisfactory, and that the difficulty was practically over. He thought he was Tight in saying that the price of bread was not as high as it was in Australia.

Dr. Reakes: “No, it is not.” Colonel Mitchell: “They are managing things badly over there.” PROSPECTS FOR BUTTER PRICES.

Referring to butter, the Prime Minister said lie did not wish to say very much because the situation was very awkward and difficult. He did not doubt that a satisfactory arrangement would be made. The production of butter in winter, he remarked, was one of the most slavish businesses one could be concerned in. It was not necessary to go in for a great deal of butter production during the winter season, for sufficient could be stored awqy from the summer surplus to supply the winter demands. It had been done in the past. He thought he was right in saying that the only difference in the price of butter in winter and in summer was the cost of storage, and, perhaps, a little by way of interest.

Dr. Reakes interjected that there was a small increase in winter due to overhead charges and extra cost in running the factories as a result of the reduced output during that season. . Mr. Massey: “I know the representatives of the butter producers so well that I cannot imagine for one moment they will hold out for anything unreasonable. I don’t want to say anything about the butter stored here in New Zealand. That belongs to the Imperial Government.” He thought it would be unfair to ask the Imperial Government to sell it back to them at a lower price than they were prepared to pay to the producer. “I think you may safely come to the conclusion,” he said, “that when the conference is held next week ,a satisfactory arrangement will be made for butter The price of butter has fallen at Home, and the producers realise that next summer the price will be lower than it has been during the last 12 or 18 months.” Colonel Mitchell: “What Js to be the factor governing the price?” Mr. Massey: “Leave that till the conference meets. I don’t want to express any views that would prejudice opinion when the conference meets.