BOX CONTROL.

Auckland Star, Volume LXVIII, Issue 158, 6 July 1937, Page 8

BOX CONTROL.

INCREASE IN PRICES.

PAST YEAR'S SHORTAGE.

HAND-TO-MOUTH SUPPIiT. "Wβ hope that we shall never again experience the hand-to-mouth conditions in the supply of butter boxes which have ruled during the past season/ , said a dairy company chairman, Mr. J. E. Leeson, of Morrinsville, to-day, in discussing the effects of Government control of the butter box industry in the Dominion. He mentioned that control had been accompanied by a sharp increase in the price of the boxes and a reduction in the supply to a point where the reserve stocks of some companies had entirely disappeared. Going back to the beginning of control in the autumn of 1936, Mr. Leeson said it was introduced without any demand for it from the dairy industry, and without the industry being given any opportunity to discuss the question. For many years the competitive selling of butter boxes to the dairy companies had been satisfactory in every way. There was never any threat of a shortage, the prices charged were Teasonable, and delivery was always ahead of requirements. Committee Set Up. When the Government announced its intention of taking control of the supply of butter boxes a committee was set up of representatives of the Forestry, Agriculture and Industries and Commerce Department, the Boxmakers , Association and the Sawmillers' Association,

explained Mr. Leeson. There was no representation of dairying interests. No price was quoted for the boxes, but the dairy companies were nevertheless asked to place their orders in advance for boxes for the whole of the 1936-37 season. One of the decisions of the committee was that the use of the saranac box, in which the greater part of New Zealand's butter was exported, should be discouraged, and a special charge of 3d was made on all boxes of that type, levied at the port of export. This raised the total cost of the box to l/9§, as compared with 1/2} paid by the companies in the previous season. Limitation of Supply. Combined with the levy of the special charge there was limitation of the eupply of the boxes, which, Mr. Lesson said, was a serious matter in the flush of the season. "Instead of being able to keep a month's stock on hand, some factories, including ours, did not know where to look for their boxes," he added. "We were down to half a day's supply at times, end although we made repeated requests to the Dairy Board and to everyone connected with the industry we obtained no satisfaction. We hope we shall never have that experience again." t Referring to the timber supply, Mr. Leeson mentioned that during last spring the Government had gazetted an order that the minimum price charged for the export of white pine to Australia should be 25/ per 100 superficial feet. At the time the order was made the fixed price for white pine cut by the millers for manufacture into butter boxes in New Zealand was 20/. Yet in spite of the higher price charged to Australia, together with the freight across the Tasman, there was the extraordinary position that the boxes were being sold f.o.b. on Melbourne for 1/s}, that is, 4d below the price, including the special charge, which the dairy companies in New Zealand were required to pay. Sdon after the price for export was raised the millers on the West Coast refused to cut for the local market at 20/, and the price was raised to 22/6. Under the scheme of control the various interests engaged in the production of the boxes were fully and completely protected, said Mr. Leeson, but the dairy companies had no protection, nor had they been consulted at any stage. At the present moment they were making their arrangements for another heavy season, and the outlook for boxes was causing rhem much concern.