Move To Promote Own Dairy Sales

Press, Volume XCVIII, Issue 28890, 9 May 1959, Page 14

Move To Promote Own Dairy Sales

(A'ew Zealand Press Association)

NEW PLYMOUTH, May 8. Taranaki Dairy Company directors want the industry through the Dairy Board to search for ways and means ot financing own marketing of its own products. A motion to this effect was passed unanimously at today’s ward conference at Stratford. Moved by Mr B. E. Murphy, a director of the T. L. Joll Cooperative Dairy Company, the motion was seconded by a director of the Stratford Cooperative Dairy Company. Ltd., Mr Rowe. There were two amendments to the resolution, which wants information on alternative financing forwarded to directors of dairy companies before the Dominion dairy conference in July. Mr Rowe “speaking as one of the men” was apprehensive of the future of the industry under the present Government and Mr Murphy considered that his resolution needed no explanations. The resolution followed passing of another, also unanimously, which supported the board’s memorandum to the Government a week ago. This memorandum asked the Government to allow the dairy price-fixing authority to operate within the framework of the Dairy Products Marketing Act, 1957, and put forward some suggestions as a basis for discussion. The negotiations with the Government were explained to the conference, by the chairman of the board, Mr A. Linton, as part of his address. The Government’s alternative proposals were, he said, totally unacceptable. Mr Linton and the chairman of the meeting, the Taranaki ward member, Mr J. S. Hickey, urged the conference to give the board its opinion and support. “It is unfortunate that we are dealing with a Government that places the long-term welfare of the country second to getting into office.” said the mover of the resolution supporting the board. Mr L. D. Hickford. “Sever Connexion” “We are getting perilously close to accepting socialist doctrine,” Mr A. B. Muggeridge declared of the effect of the guaranteed price upon farmers’ thinking. The industry should not seek to remain “under an ever-benevolent Government” but determine to “sever our connexion with them.” “We’re getting in behind the board,” Mr Hickford explained The industry needed to hammer every point that it could. “When we let 2d per lb go one year we suffered a drop of 4d the next year, which was last year, and now we are 6d down the drain on the local market “Yet 25 per cent, of our production goes on the local market If we got justice and this loss applied to the £7,300.000 deficit we incurred last year, we would quickly wipe it off.” The town milk supply price should be divorced from the cheese price, Mr J. P. Gibson claimed, seconding Mr Hickford’s motion. It had had a detrimental effect upon cheese. Was this move wise, Mr L. J Rundle asked. It was no good believing that the dairyfarmer’s costs were hinged on his prices “We know that our costs are governed by the general wage structure of this country and our workers are a very small part of the 360,000 workers in the country,” „he said.

The memorandum was based on ' the minimum that the board ' would accept from the Govern--1 ment, said Mr Linton. “If the ■ memorandum fails it doesn’t shut > the door to any other proposals,” • he added. “If it fails then we will ’ have to have a look at the other question.” As a member of the committee 1 of inquiry, Mr Hickey declared that Mr Hickford’s motion would ' not conflict with its working and 1 report. “The memorandum con- ■ sists of the questions over which the committee was sticking and could make no progress without ' an indication of the Government’s attitude,” he said . “Support the resolution,” Mr H. H. Lehmann urged. ‘Let the price fixing authority, fix the price and then give the Government the chance of breaking the guaranteed price.” Mr Hickford’s motion was then carried unanimously and Mr ; Murphy put his. Mr D. M. Muskex asked if the motion did not merely in its turn ' duplicate one already passed and forwarded to the committee of ’ inquiry by the Federation of ; Taranaki Dairy Factories. “Let it go,” urged Mr Hick- ! fobd, who is president of the federation. “It will strengthen ! the board’s hand to have a similar resolution from this ward - conference.” The lone voice against it came from Mr W. Marr. “Do you want more?” he demanded. Cheese ! companies had had the price in--1 creased and still wanted more. “ “You forget that every year • costs have gone up,” Mr Hickey ! replied. Prices might increase. but the farmer was not getting any more. “I won’t vote against it,” Mr i Marr declared as the motion was | put and carried. I DIFFERENTIAL FOR CHEESE Dairy Board Taken To Task (Hew Zealana Press Association) NEW PLYMOUTH. May 8. ■ The vexed question of the cheese differential arose again I during discussions of the report i of the chairman of the Dairy Board (Mr A. Linton) at the Taranaki ward conference of the Dairy Board at Stratford today. Speaking for the “Cinderella of the industry,” Mr K. D. Macartney, Ngaire, took the 1 board to task for agreeing last • August that 3d was a fair dif- • ferential. “In view of the past” the 1 cheese companies had, he felt, been generous in suggesting a one-pool system. Now the com- . mittee of inquiry in its interim J report had turned this down. He ; still believed in it "I’m sorry that you think that , you have not been supported by ; the board.” said Mr Linton, in , reply. s “Since October last when the I position became a little clearer we have tried to get the Government to increase the difI ferential.” s On his return from overseas he saw the Prime Minister (Mr ■ Nash) on December 31 and ! sought an increase in the differr ential. No reply had been forthf coming although promised within - a week, until March. The committee decided after a

very full examination of the evidence that a one-pool system would be “difficult to operate and would divide the industry from top to bottom.”

“We had information from a block of producers representing 52,000 tons of produce that they would oppose it, and that was not the New Zealand Dairy Company,’ but South Auckland companies.”

A member of the committee, and of the cheese committee, Mr W. E. Scott, chairman of New Zealand’s largest independent cheese producing company, the T. L. Joll Co-operative Dairy Company, Ltd., asked to be allowed to give his explanation of matters in committee.

The committee of inquiry had not yet made its full report, and as a member he felt obliged not to discuss matters before it in public. The meeting then went into committee.