H.—44,

9

Table showing the F. 0.8. Equivalent per Pound realized pop New Zealand Butter in Bulk in London during First Half of Season. London Wholesale P.o b. Equivalent per London Wholesale F.o.b. Equivalent per Price per Hundredweight. Pound in New Zealand Price per Hundredweight. Pound in New Zealand. 170s. .. 16-22 188s.. .. 18-04 171s. .. 16-32 189s. .. 18-14 1725. .. 10-12 190s. .. 18-25 1735. .. 10-52 191s. .. 18-35 1745. .. 10-63 1925. .. 18-45 1755. .. 10-73 19,35. .. . 18-55 1765. .. 16-83 1945. .. 18-65 1775. .. 10-93 1955. .. 18-75 178-:. .. 17-03 1965. .. 18-85 1795. .. 17-13 1975. .. 18-96 180s. .. 17-23 198s. .. 19-06 18,1s. .. 17-33 1995. .. 19-16 182s. .. 17-44 200s. .. 19-26 183s. .. 17-54 201s. .. 19-36 184s. .. 17-64 2025. .. 1946 J 85s. ... 17-74 2035. .'. 19-56 186s. .. 17-84 2045. .. 19-60 187s. .. 17-94 (Note. —Cost of patting, &c, for local market averages fd. per pound, which charge must be added to f.o.b. to get wholesale local parity prices.) The retail prices under present conditions to be on a parity with f.o.b. prices would need to be 3d. higher, The Government approved of the Board's scheme for the regulation of butter-prices by the establishment of an Equalization Fund to bring both export and local prices on a parity, and the necessary steps were taken by the Crown Law Office to give effect to the recommendations of the report. Regulations were accordingly drafted, approved, and gazetted on the 13th October, 1916, and the scheme lias worked in a satisfactory manner as regards the local control of prices. (See Appendix Bof this report.) Later, another regulation was issued withdrawing the privilege of acquiring export licenses to those factories which did not apply before the 19th January, 1917. To assist the Board in carrying out the scheme a producers' committee was appointed by the interests concerned, consisting of Messrs. A. Morton, H. E. Pacey, C. P. Agar, J. Marx, VV. D. Powdrell, and W. Fisher, and the Board has had the willing co-operation and advice of this committee, although personally they were opposed to the creation of the Equalization Fund by the imposition of a levy on butter-fat. Mr. R. Triggs, Imperial Supplies Branch, was appointed as Licensing Authority under the Regulations. An originating summons to test the Validity of the Order in Council establishing the Equlization Fund was heard in the Supreme Court before the Full Bench, consisting of their Honours Stout, C.J., Edwards and Chapman, JJ. It was contended that the Order in Council was ultra vires on the ground (i) that section 24 of the Regulation of Trade and Commerce Act, 1914, merely extends the powers conferred by section 47 of the Customs Act, 1913, and therefore in applying section 47 (2) of the Act of 1914 the words " conditions and restrictions " must be limited to such conditions and restrictions as might have been prescribed under the Act of 1913 standing alone; (ii) that the payment exacted from the licensees was a tax or charge within the meaning of the Petition of Right, and was therefore invalid because not assented to by Parliament : (iii) that the fund created by the Order in Council was money of the Crown, and as such could only be disposed of by Parliament under section 54 of the Constitution Act; (iv) that none of the powers conferred by the legislation in question could be delegated by the Governor in Council as proposed in regard to the Licensing Authority; and (v) that the Governor in Council had no power to make the Order imposing the levy retrospective. It was held by the Full Court (Edwards and Chapman, JJ. ; Stout, C.J., dissenting) that the Order in Council was valid in all respects. Under the regulations 399 factories applied for licenses to export, and of this number 114 manufacture butter alone and 285 manufacture butter anil [or] cheese. The total amount paid in levies to the Equalization Fund up to the 31st March last amounted to £147,947 9s. lOd. The Board authorized the payment of 2d. per pound on all butter sold on the local market up lo 31st March, amounting to £39,463 3s. lid. The amount of butter sold from month to month in respect to the claims received is as follows: October, 1910, 1,334,512 Ib.; November, 1916, 1,441,7481b.; December, 1916, 1,500,447 Ib.; January, 1917, 1,478,186 Ib.; February, 11)17, 1,544,228 Ib.; March. 11)17, 1,392,5861b. These figures of the consumption of butter are interesting as being an approximation to the total butter consumed month by month in New Zealand. Tin; 2d. authorized will absorb £72,103 13s. 4d. On the winding-up of the Fund the Order in Council provides that moneys remaining in the hands of the Licensing Authority shall be returned to the contributing factories, less expenses of administration incurred. On the 15th February the Hoard, on Ihe advice of the Producers' Committee, gazetted maximum prices of butter for the months of February to August inclusive, in order to ensure the successful carrying-out of the scheme during the winter. Under these the Board for the first time gazetted maximum retail prices of butter. (For the regulations see Appendix C.) The scheme, taken as a whole, in spite of the opposition of the factories to the principle involved, is in practice working satisfactorily, ami the Board gratefully acknowledges the assistance from the Producers' Committee, who have at all times placed their expert knowledge at its disposal.

2-H.-44.