H.—3B

14

DISPOSAL OF KAURI-GUM. fiie disposal of kauri-gum, the property of the Government, to the best commercial advantage is but another of the increasing functions of the Department of Imperial Government Supplies. The Kauri-gum Superintendent, acting under instructions of the Government, visited Canada and the United States to ascertain at first hand the ruling market conditions in those countries. One outcome of this visit was the appointment of Messrs. G. W. S. Patter-son and Co., of New York, as agents for the disposal of the gum on the Government's account in Canada and the United States. A considerable quantity of gum has already been thus disposed of at satisfactory prices. Arrangements are now in train for marketing parcels of the lower-grade gums in the United Kingdom, such grades not being suitable for the Canadian and American markets. The gum sold has realized £10,915 Is. Bd. The estimated value of that on hand is £26,129 13s. 7d. MEAT FOR RED CROSS. Incidental to the frozen-meat export of the Department of Imperial Government Supplies may be mentioned the purchase on behalf of the Meat Trade Section of the British Red Cross Association of 5,000 carcases of lamb, being approximately 200 carcases from each freezing company operating in the Dominion. MONEYS DISBURSED. The total disbursements of the Department of Imperial Government Supplies from the 3rd March, 1915, to the 31st March, 1917, were as follows :— £ . On account Imperial Government ... ... 27,731,525 On account Dominion Government ... ... 87,591 £27,819,116 The salaries, expenses, rent, stationery, and all other incidental charges connected with the administration of the Department since its inception to the 31st March, 1917, have amounted to £6,361. BUTTER-FAT LEVY. Another duty which the Department of Imperial Government Supplies has been called upon to discharge is the collection of the levy of fd. per pound made on all butter-fat consumed in the manufacture of butter and cheese, to form a fund from which factories supplying the local requirements with butter at a price below its f.o.b. value would be compensated, so as to put them on a parity with those who export their butter, it being a condition precedent to export that the levy should be paid and a license for export obtained. To enable the scheme to be brought into operation an Order in Council was gazetted on the 13th October, 1916, and became operative on the following day, prohibiting the export of butter and cheese unless manufactured at a factory in respect of which an export license had been issued, and the schedule attached to the Order in Council sets out in detail the conditions to be complied with prior to a, license being issued by the authority appointed for the purpose. Under warrant dated 14th October the Controller of the Department of Imperial Government Supplies was appointed Licensing Authority, and a conference was held on the 17th October, at which representatives of the producers, Department of Agriculture, Customs Department, and Imperial Government Supplies Department were present, and a " working-arrangement" was approved.