MILK PRICES.

Auckland Star, Volume LXIV, Issue 155, 5 July 1933, Page 12

MILK PRICES.

FIXATION DESIRED.

DELEGATION TO MINISTER.

EFFECTS OF PRICE-CUTTING.

The fixation of milk prices in Auckland was discussed at a further meeting yesterday afternoon of the committee of producers and vendors, which was set lip after the conference convened by the Mayor, Mr. G. Hutchison, on May 26. It was decided that immediate action was essential in the interest of all connected with the trade, and a delegation was appointed to go to Wellington and interview the Minister of Industries and Commerce, Hon. J. G. Cobbe, with a request that he fix minimum and maximum prices.

Mr. J. Purtell, in moving that a delegation wait upon the Minister, said that it could also place before him the recommendations which had been made to the City Council for tho establishment of an Auckland Metropolitan Milk- Council. There would be delay if they waited for tho City Council and other local bodies to act. There was power under the i; iiu-d of Trade Act for the Minister to take tho steps suggested.

"A Losing Price." Mr. W. Madill said 3d a quart was not a payable price for milk. He felt that tho position might warrant the committee raising the price, irrespective of what attitude East Tamaki took up.

Mr. Purtcll said it was known that tho present price of milk was a losing price to both the farmers and vendors. Firms could not go on as they were unless prices were fixed. He could not understand tho attitude of the East Tamaki farmers, because the raising of the price must be to their benefit.

Other members supported tho idea of approaching tho Minister.

"The matter is very urgent. Farmers are threatened with having to give up their farms and go on relief," said Mr. Little john.

A delegation, consisting of Messrs. Madill, Purtell, Littlejolm and Smith was then appointed.

Warring Factions. "Members will remember that efforts wero made to reconcile the warring factions," stated Mr. Madill subsequently, when summarising the work of tho special committee. It was time, he said, that the public was told the true position in regard to the milk trade in Auckland. It was to be regretted that Mr. W. Goodfellow, who had attended earlier conferences had withdrawn. He had advised against price cutting and had pointed out that the inevitable result would be wholesale bankruptcy. Every effort had been made to straighten out tho position, but the fact remained that tho recently-formed Farmers and Vendors Association, backed by the group of East Tamaki farmers, who were in turn backed by the New Zealand Co-operative Dairy Company, had followed a definite policy of price-cut-ting.

"In view of recent events," said Mr. Madill, "it is quite clear what tho trade generally is up against and what is in store for the public later on. It is positively ridiculous for anyone to say that the present price of milk is not uneconomic in the extreme." He thought tho trade should increase prices without delay.

Mr. J. Purtell emphasised that it was not possible to pay fair wages to workers if milk prices were kept at the present level. What was wanted was a fair return to farmers, vendors and tho workers.

Mr. Littlejohn stated that the East Tanmki farmers were being paid 2.5 d a gallon, and that tho reorganisation by the Farmers and Vendors Association could not be benefiting those producers.

At tho conclusion of the meeting tho delegation appointed to proceed to Wellington received legal advice on the section of tho Board of Trade Act relating to price fixation. This legislation, it wa3 stated, had been put into force to fix milk prices in Auckland some years ago.