MILK COMPANY SHARES

Press, Volume LXXXVIII, Issue 26855, 7 October 1952, Page 6

MILK COMPANY SHARES

council’sTjnanimous DECISION APPLICATION FOR £20,000 LOAN Unanimous approval of an application being made for sanction of a loan of £20,000 to buy shares in the Christchurch Milk Company was given by members of the Christchurch City Council last evening. To declare their unanimous agreement that a choice of raw or pasteurised milk should be allowed, the council also passed another resolution to inform the Metropolitan Milk Board that the council endorsed enforcement of the board’s by-law giving this right of choice. It was reported that 11 objections had been received to the loan proposal. .

If sufficient objections were lodged to require a poll of ratepayers on the proposal, the council would not put citizens to that expense, but it would be stated that such an event would not deter the council, which would find other ways to secure an interest m the company for the protection of consumers, said the Mayor. (Mr R. M. Macfarlane, M.P.) commenting on the recent public meeting on the question. A dividend of 5 per cent, for the Christchurch Milk Company was reported by Cr. W. P. Warner, who is chairman of the company, during the discussion.

Many mis-statements had been made at the public meeting, Mr Macfarlane said. The council did not intend to take over the company. The Government would not bring down such legislation, and that had been announced at the council’s special meeting on milk some months ago. “But the interests of consumers are paramount and it is for their protection that the council put forward this loan proposal,” Mr Macfarlane continued. Personally he preferred pasteurised milk, but he agreed with a choice being given as did other councillors. A loan poll would cost £2OOO to £4OOO on a proposal involving £20.000, if sufficient objections were received. “That would be silly and we would not go on with it,” Mr Macfarlane said. “But if the petitioners think that is going to stop the they are making a very bad mistake indeed. We will find some other way.” It was significant that those at the public meeting who talked so much of freedom apparently would scarcely allow Cr. Warner to make an explanation, the Mayor said. Profit and Loss Account

Cr. Warner said he had given councillors a confidential profit and loss account of the Milk Company whjeh showed that, after allowing depreciation and paying interest on big loans, the company could still declare a 5 per cent, dividend on subscribed capital. When he had told the council it would not lose money by taking an interest, he had been speaking on facts. A lot seemed to have been made of the requirement that consumers should notify in writing any preference for raw milk, Cr Warner said. Few people ever saw their milkman and this notice was sought simply to get a firm indication of the raw milk require® ments for the treating houses. “Preferences have been honoured,” Cr., Warner said. No great change in the set-up of the Milk Company was involved, said Cr. T. H. McCombs, The City Council was simply taking v.p shares allocated to local bodies through the Milk Board. “If this is not done it may mean a monopoly on which the consumers are not represented,” he said. After having had extensive scientific training and having milked cows for years, Cr. McCombs feaid he demanded pasteurised milk. Leaving tuberculosis aside, there were many diseases distributed by raw milk ana this caused the loss of many man hours.’ “So does beer,” said Cr. L, G. Amos. “That’s pasteurised,” said Cr. M. B. Howard, M.P. Right to Object Cr. C. D. W. L. Sheppard suggested that the matter be held over to allow every opportunity for objections. He did this not to upset the motion but simply to ensure that everyone could exercise their right to object. Those rights would be safeguarded because when the council notified the Loans Board that some protests had been received, the board would probably advise that a further opportunity should be allowed, said the Mayor. Five per cent, of ratepayers must lodge objections to require a poll, Cr. J. E. Jones said he stood for a right of choice, but he wanted assurance that milk was true to label. Tests should be possible at the dairy. “That can be done quite easily,” Cr. McCombs said, “This is the only wise thing to do, and it would be calamitous to miss this opportunity,” said Cr, J. L. Hay. He had lived to regret his objection to local body control of the supply in Wellington, which now had the best service in the Dominion.

Knowing Labour Party policy, he wondered why Labour councillors did not go out and out for full control by the City Council’instead of a half interest, said Cr. Amos. Cr. Warner’s accounts were confidential, but he would like to know more about the relationship of margins to profits. “Cr Ajpos would love us to try municipalisation of the milk supply and then make a political issue out of it.” said Cr. Howard. As chairman of the Milk Bbard she could assure Cr. Jones that milk was true to label, and tell others that the board’s by-law re® quirecr that a choice of milk be allowed. If people were too lazv to write a little note asking for raw milk that was their fault. ~ Tbe public meeting recently, he thought, was most concerned that the choice should be allowed, said Cr. W. P. Glue. , Q r - N. R. Forbes said he was pleased to hear that the choice would be safeguarded. i The two motions were then carried unanimously.