BUTTER PRICES.

Taranaki Daily News, 16 May 1921, Page 5

BUTTER PRICE S.

PLEA FOR REDUCTION,

NO CHANGE TILL SEPTEMBER.

CONTRACT TO BE KEPT-

By Telegraph.—Press Association. Christchurch, May 14. Messrs. McCombs, Witty and Sullivan, M.P.’s, waited on the Hon. W. Nosworthy to-day and pointed out that the high price of butter was a serious factor in working-class homes. Mr. McCombs said the deputation represented the consumers, and they were concerned because the Government had not taken action to protect their interests now that the world’s market price of butter had fallen.

In the course of his reply, Mr. Nosworthy stated definitely that there would be no change in the price till the end of August. He said that although he personally was against the subsidy business, which commenced in the war period during the term of the National Government, the deputation must recognise that once the Government got “imprisoned” with the subsidy principle it was not very easy to get out of, and the principle underlying the whole thing was to make the best deal the Government could for the winter output from the factories to assure the people of a supply up to August 31, and then to terminate, once and for all, the subsidy arrangement. “I quite recognise,” continued Mr. Nosworthy, “that the facts you have brought before me are from the point of view of your own constituencies, but it must be remembered that if it had not been for the export of butter and cheese from this Dominion for the nine or ten months just ended we would be very much worse off. Butter virtually saved this community.” Mr. Witty: “We are not grumbling.” •Mr. Nos worthy continued: “Instead of partial unemployment there might easily have been total unemployment. It is not one section of the community but all sections who are affected by the slump that has taken place. I for one am quite prepared to take the responsibility for what was done because it was done after mature and deliberate consideration and prolonged negotiations. The Government has taken steps to assure winter supplies up to the end of August, and then will come a free market. That I believe in. We have entered into - a contract between the Government and the dairy producers, and it is not the slightest use appealing to me or to the Government for any breach of that contract.”

Mr. McCombs: “When did you enter into it?”

Mr. Noswort'hy: “At the end of March when there was not the slightest whisper of any collapse in the outside market. The Government arranged for the price to be as low as possible, and did its utmost to -give the people reasonable winter supplies. After August 31 there will be no interference by the Government in the trend of prices, and as far as I know the price will be governed by the world’s markets.” Mr. McCombs asked whether the Imperial Government had not offered to resell a portion of its purchase to New Zealand at 175 s a cwt., which would mean a retail price of about Is fid. Mr. Nos worthy replied that the Imperial Government had stated it did not wish tq sell any surplus butter for local consumption in New Zealand.