FOURTH EDITION

Auckland Star, Volume LVIII, Issue 167, 18 July 1927, Page 15

FOURTH EDITION

POSPEL OF WORK.

AUCKLAND MERCHANT'S

OPINION.

LESSONS OF GREAT BRITAIN

FAILURE OF DAIRY CONTROL.

Mr. I". 11. Leonard, of the firm of Leonard and Son, Ltd., dairy produce merchants, who returned to Auckland to-day by the Maunganui, after a trip to England and America, is optimistic as to trade prospccts within the Empire, but, in view of what he has seen abroad, he thinks harder work and a little less devotion to sport would be all the better for New Zealand.

He said there was plenty of evidence at Home that the coal strike, war debts and unemployment were having a depressing effect on trade, but England was a wonderful country, and there was nothing decadent about her people. "They know their burdens and are taking things seriously. They are properly down to it, and are determined to win out,'' he added. Canada and the United States, too, were both hard at work.

" They think nothing of starting work at eight o'clock every day and carrying on until six at night," said Mr. Leonard, "and they frequently work as long on Saturday as they do on ordinary weekdays. Sunday is the only real rest they observe, and there are icwer national and local holidays."

Mr. Leonard was emphatic in the opinion that the removal of dairy contror would be a good thing for New Zealand. Tie arrived in London a few days after the removal of fixed prices, and found butter and cheese selling freely as a result. Under the hoard's price fixation regime produce had been accumulating in cold stores, and the Toe-lev Street merchants were becoming concerned over the possibility of reclamations. The releasing of iarpe stocks caused a drop in price and advances were reduced. A few weeks of free selling relieved the congestion, and the market steadily rose, butter reaching 170/ and cheese 00/. The hoard, however, did not (five the merchants a free hand, but fixed a weekly quota for each to sell. This action was not in any way helpful, for it often happened that a buyer wanted a parcel and could aot pet it. If asked to wait till the following week when a further supply would lie available, the buyer often filled his requirements with something else.

Boycott of New Zealand Produce. 'T was in close touch with the product* from the ship's side to the retail counter both in London and in the provinces," said Mr. Leonard, "and I heard no approval of the board's policy anywhere, hut universal disappointment and opposition. For a time a boycott of .New Zealand pre .luce existed, and for the whole period of fixed prices sonic wholesalers did without New Zealand butter and cheese altogether. Apart from the traders and those of the public who were buyers, I found many disinterested persons expressing regret that New Zealand should have put into operation by Act of Parliament a policy which implied exploitation of the Dominion's best customer, and one that was 60 faf removed from New Zealand's established reputation of avoiding tactics which might lend to loosen the tie which binds her to the Mother Country. It was Unconsidered opinion of many people in England that commercially the board's policy would be a failure and politically it was a mistake.

Free Trade Essential. '"But now that iree inarKeting hab been restored, the vital necessity 13 to regain the goodwill of our customers ana secure a higher return to cur producers. Unrestricted free trade is what British traders believe in, and 1 am of opinion that every facility should be given for trading in butter and cheese, i .o.b. and c.i.f. sales, and forward sales help the market, and consignments shouid bt sold, if possible, within a few days ol arrival. A 'stable' market is more likely to be a 'low' market than a high one, and may only indicate that selling is slow. A market that is fluctuating daily, or even hourly, is a more healthy sign, and is likely to yield a better aggregate return than a 'stable' market, especially when artilieial methods are employed to stabilise prices." He was convinced that New Zealand should for the next year or two drop all schemes of holding either in New Zealand or London, and should avoid any combines of the industry or combines of any groups of dairy companies to manipulate marketing. The operations of such factors would be viewed with suspicion and might result in loss to the whc!e indufctrv.

Praise for Our Produce,

In parts of Canada, said Mr. Leonard, he found there was some opjiosition to the importation of New Zealand butter, and talk of a "dumping" duty. This attitude was partly the result of a misunderstanding, the duty being aimed chiefly at Australian butter, which enjoyed an export bonus.

In Montreal, Toronto and Winnipeg lie met many business men interested in the dairy industry, and discussed the problems of marketing as they affected Canada and New Zealand. The general opinion was that it would pay Canada to sell its butter to the United States and Great Britain, and, instead of carrying over stocks for home consumption during the non-producing period, to buy from New Zealand. It was gratifying to find universal praise for the high quality of New Zealand butter.