MARKETING N.Z. PRODUCE

Auckland Star, Volume LVIII, Issue 109, 11 May 1927, Page 4

MARKETING N.Z. PRODUCE

THE BOARD'S POLICY. AND LONDON OPINION. FAVOURS TO ONE FIRM. The last mail brought from Mr. F. H. Leonard, a well-known Auckland dairy produce exporter, who is at present in London, some interesting facts concerning the marketing of New Zealand dairy produce. Inter alia Mr. Leonard says:— "I came here at a dramatic time, just after price-fixing had been lifted. The firms gained other concessions; they claimed and took the right of inter-trading with each other, and no names of buyers to be given to the auditors, and so on. "A few days ago. there was a good deal of apprehension about reclamations. Many firms are nervous, and it is recognised that the board has no responsibility, and reclamations could not be collected from them. Legal advice was sought, and the position was described as of National importance to New Zealand. The board has been constituted by Act of Parliament, and the Tooley Street firms hold that, in the event of a reclamation, they have recourse in the New Zealand Government who dare not let the board default, for that would ruin New Zealand's credit. So our dairy industry is playing a dangerous game." Mr. Leonard draws special attention to the position of the New York business. He states that one particular firm has been given a monopoly of that trade, adding that when challenged on the point the board's secretary had stated that this firm had made a satisfactory f.o.b. contract with the board. Mr. Leonard now states, on the authority of Mr. Stronach Patereon, that not a box had been sold to U.S.A. when the ships left New Zealand. He adds that this favoured firm, which receives a special commission of 3 per cent on the New York business, as against 1 per cent formerly charged by agents, sent to America the product of one particular company. Resenting this, Mr. Leonard's London principal, Mr. Rowson, immediately retaliated by shipping East Tamaki butter to New York and got higher prices for his clients.