‘Farmers happy with system of fees’

Press, 26 March 1981, Page 3

‘Farmers happy with system of fees’

PA Wellington Farmers . are generally happy with' the present system of fees used by stock and station agents, it W’as said at a Commerce Commission hearing yesterday. The commission is inquiring into aspects of collective pricing arrangements run by the New Zealand Stock and Station Agents’ Association.

Federated Farmers has said that the system of maximum fees scale set down by the commission in 1978 is not working. Farmers have not been able to negotiate for fees below the maximum, the organisation says. ,

Mr J. D. Dalgety, appearing for the agents’ association, suggested that farmers were satisfied with the present system. He cited a Lincoln College survey in which 44 per cent of farmers questioned said they were happy with things as they were. “Only 37 per cent opted for direct, open negotiation in open market conditions,” he said.

Mr Dalgety was crossexamining Mr J. R. A. Stevenson, the acting director of business practices in the office of the Examiner of Commercial Practices. ‘As a result of his investigation into the federation complaint Mr Stevenson has recommended to the commission that it revoke its earlier system decision and enter a new one, with certain conditions.

During the investigation, Mr Stevenson’s office also surveyed farmers on the fees system.

Mr Dalgety suggested that the results did not reveal any level of concern. “I would not agree with that. There is great concern,” Mr Stevenson said. Only a negligible number of farmers had been able to negotiate stock and station fees below the maximum laid down on the scale. Mr Stevenson said a “fundamental impediment” to the system working as intended was constituent members of the agents’ association being involved in regulating the fees.

He has recommended that this work only be done by the association’s executive members.

The inquiry will continue today.