H.—44

8

15. Assuming that the Government is prepared to take action with a view to regulating the price on the local market, the appointed members of the Board have considered various possible courses now available, and after the elimination of impracticable schemes recommend as follows : (a.) The prohibition of export of butter and cheese except under license on the terms and conditions submitted in a separate memorandum attached to this report. (b.) The fixation of a maximum wholesale price from time to time at the factory for butter for local consumption, (c.) Distributing-charges not to exceed those ruling in the trade as on the Ist August, 1914. 16. Should the scheme outlined in the report and the attached memorandum be adopted by the Government the Board would further recommend the removal of all other restrictions on the export of butter. 17. The scheme would be fruitless if made to apply to butter only, as the threat has been constantly used that manufacturers would manufacture cheese in its place, and butter-fat would be diverted to cheese factories. We append a schedule showing f.o.b. equivalent per pound of prices realized for New Zealand hut tor in hulk in London. Memorandum referred to in Paragraph 16. 1. On. and after (he export of butter and cheese will be prohibited except .under license. 2. All factories desiring a license to export either butter or cheese shall make application for permission to do so to the officer in charge of the Imperial Government Supply Department, General Post Office, Wellington, on the prescribed form. 3. Licenses shall be issued by the Imperial Government Supply Department, General Post Office, Wellington. ■I. Every applicant for a license shall sign an agreement embodying the following terms and conditions :— (a.) Thai he will furnish to the Imperial Government Supply Department, monthly a return on a prescribed form showing the quantity of butter-fat received at the applicant's factory as from the Ist September, 1916. The returns for the month of September to be furnished forthwith, and each subsequent return not later than the 7th of each succeeding month. (6.) That he undertakes to pay in respect of such butter-fat such charge per pound as ma)- be fixed from time to time by Order in Council. (S.) Thai he undertakes to furnish to the Imperial Government Supply Department the quantity in pounds of butter boxed for export, and the quantity boxed for local consumption during the same period. ('/.) That he undertakes to furnish to the Imperial Government Supply Department the name of the firm or individual to whom the butter for local consumption is supplied. In case the licensee is not the exporter, he shall supply the name of the firm or individual to whom the butter is delivered or sold. (c.) That every applicant for a license shall brand all boxes of butter either as being for export -or for local consumption, as the case may be. Such brands shall be supplied on application to the Director of the Dairy Division. (/.) Applicant shall also undertake to furnish to the Imperial Government Supply Department such further particulars as may be required from time to time, and to allow an accredited official of the Department to inspect the books, accounts, and records of applicant factory in so far as they relate to the receipt and disposal ' of butter-fat, butter, aty! cheese. 5. Where in the opinion of the Imperial Government Supply Department the circumstances require it, a statutory declaration verifying the particulars supplied may be demanded. 6. Payment by a. licensee under the terms of the aforesaid agreement shall be made within seven days of (he receipt of a notification from the Imperial Government Supply Department of the amount due, such payments to be made to the Imperial Government Supply Department, Wellington, direct. 7. Failure to comply with any of the terms of the agreement or the regulations shall render Ihe license liable to forfeiture in addition to the penalties prescribed under the Regulation of Trade and Commerce Act, 1914, and amendments thereto, and the Customs Act, 1913. 8. Moneys paid under paragraph 6 shall be available for distribution to factories supplying the local market on the basis of the quantities of butter supplied for local consumption. 9. Before any factory can participate in the distribution mentioned in clause 8 it must contribute to the Imperial Government Supply Department a sum per pound of butter-fat entering the factory equivalent to the charge made for license to export, and it shall furnish to the Imperial Government Supply Department the monthly return as required in clause 4. 10. Where at any time it is intended to transfer butter marked for local consumption to export it shall be necessary to obtain the permission of the Director of the Dairy Division, who shall furnish a return showing the quantity transferred and the name of the factory producing the same to the Imperial Government Supply Department, and such butter shall not be taken into account in the distribution referred to in clause 8. 11. Nothing in the scheme .shall apply to milled butter, whey butter, farmers' dairy butter, farmers' cheese. 12. Supplies for military requirements either for camps or transports to be classed as locally supplied butter.