TALKS IN MILK DISPUTE

Press, Volume XCVIII, Issue 28794, 15 January 1959, Page 10

TALKS IN MILK DISPUTE

Producers’ Officials Go To Hastings

(New Zealand Press Association) WELLINGTON, January 14. With the Hawke’s Bay milk producers persistin;■ in their decision to withhold their normal supply to Hastings and Napier, the president of the New Zealand Town Milk Producers’ Federation (Mr J. J. Maher, M.P.) and the secretary (Mr V. S. Lynskey) have gone to Hastings to have talks with the provincial suppliers. It is expected that they will report to the ActingMinister of Agriculture (Mr Boord) tomorrow morning. This morning the executive committee of the Hawke’s Bay Raw Milk Producers’ Co-operative, Ltd. told the Minister that it remained adamant that the full quota of milk for town supply would not be sent to the milk treatment station at Hastings.

The Minister yesterday asked the company by telegram to advise him of any reasons why the licence for its casein factory at Waiohiki should not be cancelled or “other appropriate actions taken."

The company’s executive this morning replied that it understood the terms of the licence, but asked ■for his direction on whether to continue manufacturing casein from the milk or to “tip it down the drain.” The reply sent to Mr Boord said:—

“Re your telegram of yesterday. The news reports are correct. My directors are fully aware of the restrictive licence re casein manufacture and are also aware of why at the time restrictions were

imposed. “Are you aware that for years the restrictions have given no concern to the Department of Agriculture? Apparently they are now convenient to the Government. “My directors are prepared to take your direction as actingMinister of Agriculture as to the alternative disposal of milk being received at the (casein) factory. “Do we continue to manufacture the milk into the only premium grade rennet casein made in New Zealand and a good earner of sterling funds, or do you prefer the milk to be tipped down the drain? Please advise.” Secretary’s Comment The secretary of the company (Mr N. C. Beuth) said this morning: “Certainly we will pour the milk down the drain if the Minister gives us the direction. If he does not give us the direction, we will continue to divert it for the manufacture of casein.” Mr Beuth said the factory’s licence stipulated that not more than 3000 gallons of milk should, be processed each day, but for years there had been occasions on which the surplus of milk above the normal requirements of town supply had been much greater than 3000 gallons. “We have processed up to 7000 gallons a day rather than pour this surplus milk down the drain,” he said. “The Department of Agriculture knows this and we have had the tacit approval of the authorities. The licence stipulations are absurd. “The moment the Minister agrees to arbitration, full supplies of milk for public consumption will be resumed,” he said. Mr Beuth said he knew the public would be annoyed with the company. “I would be, too. But we don’t mind that. We have just had enough."

He thought the Government was frightened to allow arbitration on the producers’ price, because arbitration might decide in favour of the producers, Mr Beuth said the Minister of Agriculture had not intervened

at all when the dairy factory employees were “holding the industry to ransom” for a wage rise. “The Minister intervened in this case because we are not an industrial union,” he added. Mr Beuth, weary-eyed and strained-looking after discussing the Minister’s telegram with the

company executive and framing a reply at a meeting which lasted until 3 o’clock this morning, said: “There is no weakness at all Do not worry about this company.”

After talks in Wellington today with representatives of the New Zealand Town Milk Producers’ Federation and the New Zealand Milk Board, Mr Boord tonight sent the following telegram to Mr Beuth: — “Your telegram to hand, but as the Government this morning has met officers of your federation and I have been informed officially since that its representatives have travelled to Hawke’s Bay this afternoon, I propose to wait Until they have had the opportunity for discussion with you before replying fully to it. “You will understand, however, that any suggestion as made in your telegram that the milk be tipped down the drain rather than it should be supplied to the families entitled to it is abhorrent to all responsible people, and could not be countenanced by the Government.”