NEW ZEALAND CONTROL BOARDS.

Auckland Star, Volume LVII, Issue 78, 3 April 1926, Page 6

NEW ZEALAND CONTROL BOARDS.

COMPANY CHAIRMAN'S CRITICISM. WHAT AEE THE PRODUCERS ENTITLED TO? (From Our Own Correspondent.) LONDON, February 12. We transmit as recorded in the press to-day the remarks made by Mr. H. G. Emery, Chairman of the Home and Colonial Stores, at their annual meeting. " The great shipping strike in Australia and New Zealand, which had delayed the . shipping of butter, was settled in November, and the prospect of large supplies coming to this country caused the market, in December, to fall considerably. In preparation for this drop, our stocks were kept down to the minimum. You see the effect of this in tlie exceptionally large amount of cash available in the balance sheet. This may be altered at any moment, as markets become favourable to our again holding stock. Just now, the Dairy Produce Control Beards in Australia and New Zealand are with-holding and storing in their respective countries a portion of their output of butter and cheese, which normally would now be finding its way to the British market; and, at the same time, arc holding and storing for definite prices further supplies as they arrive here. This, presumably, with the intention of keeping retail values at what those boards consider a proper level throughout the season. "A policy such as this, while perhaps a sound one in a season of drought, and oonsequent scarcity, is, in my opinion, one to be deprecated in a normal season such as we have reason to believe this one will prove. If it is tlie case that both Dominions hope, year by year, still further to popularise their products and increase their output, any policy which has for its object the upholding of prices will to some extent defeat its own ends, and thereby be detrimental to the interest of our Dominions. " The Argentine is finding Great Britain a ready market for its increasing output of butter. Russia and certain other European countries are recuperating quickly from the effects of the Great War, especially in the matter of dairy produce, and they will undoubtedly welcome this action of the control boards of our Dominions in holding up butter thus early in the season, for the higher price demanded for colonial butter the more will the Russian. Siberian, and Argentine -producers get for their butters; and the more the consumer here will require to pay. "In my long experience of markets I consider that to interfere in any way with the law of supply and demand generally ends in one way. That law demands lower prices when supply is plentiful, and expects higher prices when supply is short. I would ask the dairy produce.. boards tn bear, in mind .'that the United Kingdom is pot only -their largest customer,' but is also a very willing one. I, therefore, think it would be a pity if our people, who are now demanding Empire goods, were, later, forced to the conclusion that by such organisation the ultimate purpose is to extract the last penny possible for the produce sent to this country." A number of papers have noted this speech and drawn special attention to Mr. Emery's remarks on control boards,, emphasising his statement that the policy was " detrimental in the long run," one paper going so far as to head their comment, " Dominions'- Extract-the-lnst-pen'ny Policy." The city editor of the " Times " concludes that " producers arc, of course, entitled to get the most they can for .their produce, and consumers have an equal right to do whatever is possible to avoid paying more tliaii they arc compelled to. But if colonial producers persist yi charging prices above the world level, they will Insn custom'--s. and if all producers combined to maintain prices the result would irevitab'y ha to reduce or to check consumption."