MILK DEPARTMENT

Dominion, Volume 18, Issue 192, 9 May 1924, Page 8

MILK DEPARTMENT

YEAR’S PROFIT OF £3721 THE PRICE TO THE PUBLIC REDUCTION FORESHADOWED A brief outline of tho operations of the municipal milk department for the year ending March 31 last was given by the chairman of tho Milk Committee (Councillor W. H. Bennett) last night. He stated that the year’s work showed a, profit of £3721 13s. 7’d., to which was added £706 4s. 2d., balance of suspense account, making a total credit of £4427 17s. 9d.,. after wiping out the last year’s debit balance of £2,919 14s. 9d. “The detailed statement of accounts in connection with the department for the year ending March 31 last ,is not yet ready for distribution,” said Mr. Bennett. “I have, however, sufficient data to hand to give a correct abbreviated statement of our present financial position as regards our last year’s trading. “It gives mo pleasure to state that our year’s work shows a profit of k 3271 IBs. 7d.. to which is added £706 4s. 2d. balance of suspense account, making a total credit of £4427 17s. 9d. After wiping out our last year’s debit balance of £2919 14s. 9d., we commence the present trading year with a credit of £l5OB 3s.

“As regards the suspense account, it will be remembered that at March 31, 1923, the sum of £7142 16s. Id. was put aside to meet several disputed accounts. From this account we have paid the following amounts: —Final Payment to Rahui Go-operative Dairy b. for 1922-1923 supplies, £736 13s. lid.; compensation to Mrs. Brown, £500; compensation to No. 4 Distributing Co. and legal expenses, £199 18s.; Dairy Farmers’ Association, £5009; total, £6436 Ils. lid, leaving the balance of £706 4s. 2d. referred to above.

“I can safely say .that the committee is now in a position to start fair and square, and it will be their duty to endeavour to keep the department in a sound position whilst giving the consumers the benefit of all that is possible with economical working. We nave reason to hope that at the end of this winter Iseason the retail price will be such as to give entire satisfaction. At the same time, it will be the committee’s duty to recommend the council to set aside a percentage to gradually reduce a somewhat inflated capital account unavoidably built up in the earlier stages of our operations in alterations to both buildings and plant. It may also be wise to build up a fund for rebuilding a factory in a more suitable locality better adapted for our work.

“In conclusion, I think the council are to be congratulated on the position of the milk department.”. Tho Mayor said it was particularly gratifying to know that the committee had now got the department on a sound footing. Councillor C. H. Chapman took the view that there . . would, have been greater cause for jubilation had there been an announcement of a reduction in the price of milk to the consumer. The public should have tho first call and the committee would be sure to benefit. Councillor W. Gaudin said the department was up against competition from the nearby farmers, and it meant that any slip or display of mismanagement on the part of the committee, would result in serious failure. Tho department was giving service and pure milk, and those factors were worth the price charged for the commodity. They could not have it both ways.

Councillor G. Mitchell said they had had to work off a “dead-horse” last winter, and had also paid higher prices for the milk. Councillor Chapman should bear in mind that the department had to be on a sound, footing before it could make reductions. In tho meantime, the public were receiving absolutely the best. The committee had never been on such a satisfactory footing, and he believed the price to the consumer would be reduced, probably next winter. Councillor H. D. Bennett said he had been a little alarmed to learn from Councillor Gaudin that there had been an over capitalisation and that he saw no hope of a reduction until that had been remedied. Councillor 3. Burns wanted some indication as to how it was proposed to reduce the over capitalisation. Councillors had not made that point clear. He contended that the council should never have undei taken the delivery of milk, and this should be cut out altogether. “The duty of this council should be to see that the milk is pure and then retail it, but it seems to me that the only way the. reduction can 'oe effected is by cutting out the delivery side of it.” Councillor M. F. Luckie said the matter of distribution was one of the best things tho council had ever done, and it was to their credit that they had one of the best municipal systems in the Dominion. It would be a most retrograde step to curtail the delivery. Councillor A. W. Parton did not think the departments should be altogether congratulated. The whole trouble of the overhead charges was that the department had fixed the price too high. The nearby farmer had consequently been encouraged. There was one clause in the .Milk Act asking the power of Parliament to supply milk to the poor free of charge. Councillor B. G. H. Burn said the nearby farmer was not by any means charging tho same price as the council. The fact remained that farmers had to live, and to say to the farmer, “If you don’t come over to us we will put you out of business,” was wrong. Councillor T. Forsyth congratulated the committee on its activities. Councillor AV. H. Bennett said that it seemed that the councillors who knew the least about the matter had the most to say. Tho department had lost £3500 by fixing the price too low in the summer, but, having no debit balance to make up on .the next winter milk it seemed safe to say that a reduction would .be made. They had reached the position now of having the plant and had got the system running along smoothly, . and it should be possible to keep within reasonable bounds He was sorry to sav that the last few cases taken to the Court against nearby fanners for selling milk in the city, had gone against the department, inasmuch that the law made it necessary to prove a sale. The report was adopted. BOARD OF INQUIRY SET UP ORDER OF REFERENCE. The Milk Committee, at a later stage, in committee, the following report:— “That in connection with the proposed inquiry into the affairs of the municipal milk department, a board consisting of a medical man, someone with a knowledge of farming, an accountant, a business man, and sow on<> to represent the consumers, be sot up, “That the Tollowing gentlemen be requested to act on such borrd: —Dr. Watt (medical), Mr. W. T. Strend (farming), Mr. Petersen (accor-utHnt).

Mr. J. Hutcheson (business), Mr. P. Fraser (consumers). “Tl:.it the board be requested to confine their inouiries as follow: —

“(1) What are the best methods of securing a sufficient supply and determining the conditions of supply of milk required by the council ? “(2) Is the present legislation sufficient for the council’s protection, and can the council’s policy under section 12 of the Wellington City Milk Supply Act, 1919, be so amended as to eliminate existing competition from nearby farmers ? “(3) Is the present management efficient and economical: (a) As regards general management; (b) as regards factory procedure; (c) arc the finances of the department on a satisfactory basis?”