WIDE POWERS.

Auckland Star, Volume LXVI, Issue 139, 14 June 1935, Page 9

WIDE POWERS.

MILK CONTROL.

AMENDMENTS TO LAW.

WHAT COUNCIL DESIRES

MUNICIPALISATION POSSIBLE,

"Tho Milk Council has regarded it as

, a duty to report and to submit to Parlia- , nient such aniendinente to the Act as it : considers, after adequate experience, necessary to meet difficulties that have become apparent in the course of its I operations, and the fact that interests that are likely to be affected' will raise opposition to their adoption is nob; in the opinion of tlie '(council,. sufficient reason why the amendments approved by it should not , be submitted in the form of an amending bill.": j This statement was made by Mr. Oeo. W. Hutchison, chairman of * the Auckland Metropolitan Milk Council, last night when explaining to a special meeting of the City Council,. Specially called for the purpose, proposed amendments to the Auckland Metropolitan Milk Act. ' In the course of a general review of the position, and brief history of the council's work, Ml*. Hutchison refund to the "price war" which was responsible for the-passing of the legislation creating the Milk Council. Those engaged fri the trade had been threatened with j bankruptcy, and it had been stated in evidence that had the ■ prevailing chacs continued practically the whole industry would have passed into the hands of a monopoly, and • there would then have been substantial .price increases. "It is certain that but; for the Milk Council's control," he added, "the retail price of milk in Auckland since January; 1 last would have been Od a quart." Inadequate Legislation. In referring -to the inadequacy of the legislation, Mr. Hutchison said the powers under the Act were not sufficiently wide to deal with undeelrap'.ej practices. A problem ,that would reman; | under the amendments suggested would | be the means of dealing with producer- j vendors —people who produced their: own milk and sold it retail as raw n.iik. 1 That section desired to be excluded from j any pooling system introduced. While; not agreeing that any section of trie j trad'} should go unregulated the City | Council's representatives on the -MJI k: j Council were confident that means could be found of equitably dealing with the question and preserving the right of those consumers who desired to use oiw milk, to obtain it. There were 10.0 producer,-vendors, half of whom produced only from one to 10 gallons a day. Considerable time had been devoted to the necessary steps to ensure that co.v eiimers would receive milk of nigh quality. /Although price competition had been eliminated rivalry still existed between vendors desiring tor increase their turnovers. The means adopted of I securing new customers had been by p.o- ---! viding milk of a butterfat content far in excess of that required by the council's standard. j Consolidating Delivery. Dealing with milk rounds, Mr. Hutchieon said the Act empowered the council to devise a method of delivery by means of blocking or zoning, and imposed a duty on the council to put into effect as soon as practicable, an economic eystem ! of consolidation or zoning of rounds. I That was one of the most urgent needs in #the reorganisation of the industry, I but the council considered it unfair, in giving effect to the'provision, that men who liad been engaged in the industry for long periods should be eliminated I without compensation, and the amendments included a provision that would enable the council to give compensation in cases where milk rounds were purchased, and to reimburse itself by disposing of the rounds to other vendors in a process of consolidation. The amendments did not include the power bt compulsory acquisition of rounds, and if the legislation were passed it would remain, to be seen whether the necessary consolidation, could. be achieved by negotiation. ' Although compulsory elimination of vendors without compensation had been postponed, a iot of consolidation had taken place between vendors voluntarily. Full Control—lf Necessary. In the general provisions there was a clause designed to give the council wide powers, including the power to handle the niilk if such necessity should be forced upon it. "While the present council has no expressed intention of making nee of this power," said Mr. Hutchison, "the majority of the council and its solicitor, are definitely of opinion that if the milk is to be vested in the council, circumstances may arise that would render it necessary, for the protection of the consumer, that the council should put this power into operation. Cftherwise it might find itself in the hands of interest* that might refuse or fail to -continue their present services, and as there are at present units providing these services that are definitely uneconomic, this possibility is by no means far removed." t "Power Should be There." "Circulated to members of the council with a copy of the proposed amendments was an explanatory statement of each clause. It stated, inter alia: Section 20 is an empowering clause which is introduced to ensure that the vesting of milk in the council, provided by section 23 of the amendments, may be successfully operated if the council fails at any. time to make satisfactory arrangements with those engaged in the trade. It gives the council power to engage in the purchase, collection, treatment, storage, sale and distribution wholesale and retail, or other disposition of milk. It gives the council power to treat milk, to manufacture milk into butter, cheese or casein, etc.. and to do anything which it considers' advisable to promote the consumption.of milk or its constituents. The council will have the po\ver to purchase, lease, hire or otherwise 1 acquire land. machinery, plant, vehicles, etc;, including the goodwill of any business? and to purchase shares or other interests in any company engaged in the manufacture of butter or other milk products. The council may erect buildings or other structures and ihstall machinery,* plant, etc"The effect of this amendment will "be to give the council power to bring in all milk required within the area, and have same treated, and ittfhmy actually distribute the milk !f it so desires. It will be able to purchase existing treatment plants or erect its own.- It is not the intention of the council at the prfcsent time to take over any treatment i plants or to Iniild one. nor is it the intention of the council to distribute milk, but it is considered essential that; the powers should be there if requirer l " '

. Councillors' Questions. Replying seriatim to questions which included one from Mr. L. Coakley—"ls not the. whole thing a death blow to private enterprise?" Mr. Hutchison said that experience did not show that increased butterfat content disappeared after a new customer was secured. The quality had to be maintained to keep the customer. Under a pooling system there must be uniform quality. Provision for compulsory acquisition of i;ound'B had been included in the first draft of the amendments, but was eliminated as it was thought Parliament would not agree. If the City Council or any organisation were of opinion that compulsory acquisition should be placed in the hands of the Milk Council then the council would be in favour of it. V There was no evidence, said /Mr. Hutchison, that rounds were being '■mopped up" by large concerns. It "was possible to have delivery rounds under a propel , zoning system. Under the present systems the roiind gallonage was 30 or less, and'vendors complained that they ,could not..niake a fair living. -Their only hope was consolidation and increased gallonage. The six-day week had no.t "been considered, as the couilcil had no jurisdiction; an award governed the hours of labour. The award decreed that a vendojKshould not start delivery before 3 a.m." The ccfu'ncil would agree to an alteration to 2.a.m. to allow of people who had to leave for work early in the , morning being served. Private Enterprise. Replying to Mr. C'oakley'e query, Mr. Hutchison said that it depended upon how the milk business was conducted whether the amendments constituted a death-blow to private enterprise. On the motion of the Mayor, Mr. Ernest Davis, the amendments were approved. Mr. Davis congratulated Mr. Hutchison on his informative address. Mr. J. S. Stewart, speaking for the Labour section of the council, said he hoped the amendments would be passed by their entirety, Mr. Coakley asked that hie % vote against the bill be recorded. Votes of thanks to the council's representatives on the Milk Council' were carried. The council's representatives are Messrs. G. W. Hutchison, H. P. Burton and S. Takle. All were present at the meeting and occupied seats on the platform beside the Mayor. „ '