DAIRYMEN'S VIEWS.

Auckland Star, Volume LXIX, Issue 136, 11 June 1938, Page 12

DAIRYMEN'S VIEWS.

CO-OPERATIVE TRADE.

STATE POLICY CONDEMNED.

FIXING PETROL PRICES

In its annual report the National Dairy Association criticises the policy of the Government in regard to the trading rights of co-operative companies. According to the report, numbers of dairy companies have in the past installed petrol punfps, with the object, primarily, of purchasing motor spirit for their shareholders on the most favourable commercial basis, and strong exception was therefore taken to the Motor Spirits Prices Regulations, under which fixed retail prices had to be maintained, and it became an offence to credit the purchaser with a discount or other allowance.

"Ir« response to widespread protests," the report proceeds, "the Minister of Industries and Commerce, evidently appreciating the peculiar [wsition of the dairy companies, undertook to have amending legislation introduced, which would enable them to deal with profits in any manner they thought fit. Although it is nearly a year wince this undertaking was given, it is regrettable that up to the present the Minister has done nothing in the matter, and further, recent statements make it evident that he has abandoned any intention of rectifying the position in the manner promised. Dairy companies a,re intensely dissatisfied with the position and feel they have been badly let down.

"Many inquiries were received from members of your federation as to how profit* from the sale of motor., spirits oould be dealt with without contravening the regulations, and in view of the uncertainty which existed, an explanatory memorandum from our solicitor -was sent but to all member companies. The question of the disposal of profits from the sale of fertilisers was dealt with at the same time.

"Under both the motor spirits and the fertiliser regulations, profits cannot legally be rebated to the individual purchaser, but must go into the general funds of the company. This is entirely contrary to the principles on which co-operative trading by dairy companies has been based. The primary object has always been to reduce farming costs as far a* possible by giving individual shareholders the full benefits of wholesale buying, and it has been a service that the companies have been well equipped to give at practically no cost to themselves. Profits have not been a consideration, neither has it been expected by shareholders that they should profit through the funds of their company out of the purchases of their neighbours. "In spite of the Government's repeated statements that nothing would be done to interfere with the trading operations of co-operative companies, the trend of recent price-fixing legislation reveals a danger that cannot be disregarded. The extension of such a policy must inevitably mean a curtailment of the services the dairy companies have been able to render to their individual members, and viewed from this angle, the system cannot be regarded with any " degree of favour."