ABSOLUTE CONTROL.

Auckland Star, Volume LVI, Issue 53, 4 March 1925, Page 9

ABSOLUTE CONTROL.

i » Reeded for dairy industry. IfO FACTORIES INDEPENDENT. !' PRODUCTION AND MARKETING.

'' "It a* B been 6U g£ este( i i n some quar--1 tars that the pacing of the Control Act , ffa3 secured under false pretences, by ', thg assertion that an assurance was -iron that absolute control would not [jj B Bought," said Mr. W. Grounds, chairi juan of the Dairy Control Board, at Southdown this afternoon, in speaking !t0 a gathering of delegates of dairy [companies throughout the Auckland Province. i "This, it secius to mc, is a reflection I a trainst the intelligence of those opposI jjff control," continued Mr. Grounds, I "because it was plainly stated throughi oU t the campaign that a complete invesI tieation should be made before any ! opinions were formed, or steps taken, so th&t i f the Impression was created anywhere "that complete coni ro i would never be taken, it was obvi--1 ously a contradiction in terms and I /cannot think that the opponents of control were sufficiently dull or inattentive jto iaro overlooked . this contradiction i jiad it been obvious to them at the I time. I "However, it is a distinct advantage j nO w to note that those opposing conI trol at the outset are recognising the need for a limited control. But no co-n----j trol could be effective unless it could j» exercised as absolute. Hence, in the limited control that has already been i adopted by the board in insurance matI ters it is absolute to the industry, no I factory being able to insure indepeni dently of the arrangements made by i the board.

I "The obvious conclusion of the camI paign which has been organised by merchant interests is that they now [urge us to take control of each of the i sections with the exception of marI keting, which is their particular I jphere." I Mr. Grounds drew attention to the j advantages secured to the industry by j the insurance and shipping arrangeimentßj and eaid that in the matter of i insurance the small factories had seI cured infinitely larger benefits than the j large factories, because the large ones j had previously tieen able to make I ipecial terms.

"It has been urged that a regulation of shipping intended to steady the flow of produce to the English market would meet the requirements of the industry for the time," Mr. Grounds said, "but we consider that method alone would foe inadequate for the necessities of the position, besides which to endeavour to abide by decisions regarding shipments which niUßt be made some three or four months before the arrival of the produce in Britain •would be distinctly dangerous. It is now generally recognised that even this form of limited control bj regulation of shipping would, to secure satisfactory treatment to all factories concerned, involve pooling of results. As soon as suspensions of shipments were made inequalities would be created between the different factories that would necessitate this pooling.

"With pooling for payment the establishment of more grades is absolutely essential, and payment by grade, with equal payment to each factory upon a grade 'basis, must be the procedure for the board." .. - Crux of the Position. "The crux of the position as far as the merchant interests are concerned," explained the speaker, "is without doubt the f.o.b. selling in New Zealand, hut to allow this to continue would prevent any efficient control on the London market. F.o.b. selling will eliminate competition, but any competition for the export of dairy produce in New Zealand is only a second-hand competition, coming from London, so that the board will be in an equally favourable position if it is in the interests of the industry that sales should be maintained, without the inevitable cost incurred by negotiating sales through commission agents.

"In our investigations with the importers in London, extending over some three months," he remarked, "naturally finance was one aspect of the position around which much discussion took place. There will be no difficulty about securing finance from the London merchants against the produce in exactly the same way as now through the board, instead of the individual factories; while in the matter of reservations to maintain a regularity of supply to the market it is probable that the necessary finance will be obtained through the same source on better terms than are possible to individual factories.

"Some critics appear to think that cutting out the local agents is the prime aim of the board," he said in conclusion. "This is quite wrong. It is only a subsidiary or supplementary result. The aim is to organise to secure a stable demand for our average production, and as our average is increasing so enormously every year it is obvious that marketing service will have to he equally extended to meet the growing requirements."

Mr. Grounds was not surprised at the opposition propaganda. He was urged to prepare counter-propaganda; but he believed that the industry was looking to the board for a judicial review in a propagandist pamphlet. That had been prepared.

It was now for the industry to decide whether the board'e action was adequate to the needs of the changing position; und he felt confident in the industry's decision.