MEMBERS OF BOARD RESIGN

Dominion, Volume 31, Issue 154, 26 March 1938, Page 13

MEMBERS OF BOARD RESIGN

Honey Marketing Issue REASONS STATED BY CHAIRMAN By Telegraph—Press Association. Auckland, March 25. The closure of the export market to honey producers who do not choose to market their honey through the Internal Marketing Department and the pooling of export premiums with the department’s local marketing returns for* distribution among only the department’s suppliers are changes effected, by the Government in disposing of New Zealand honey on the local-market. As a result three members of the Honey Control Board, which has hitherto had sole charge of export and internal marketing arrangements, have sent in their resignations, to take effect as from next Thursday. So far these have not been formally accepted by the Minister of Marketing, Hon. W. Nash.

Rumours that the board had resigned were current a few weeks ago when the chairman, Mr. J. R. Butland, was unable either to confirm or deny their truth. Further persistent rumours ■were referred to him to-day, when he said that so many persons seemed to be aware of the position, although members of the board had strictly refrained from commenting on it, that he felt obliged in the public interest to state that members had sent in their resignations and to inform producers what were the grounds for the board’s action.

' Throughout the board’s history, continued Mr. Butland, the producer bad enjoyed absolute freedom of choice in deciding whether he marketed locally or sent his honey to the board for export. When exporting, the board’s prime function was to market to the best advantage, and pay for consignments direct to the individual producer. These returns lutd far exceeded local parity prices, and the return to producers in any other exporting country in the world. In 1933 the export premium to New Zealand growers had been 5 3-Bd. a lb., in 193-1 6Jd., in 1935 (id., in 1936 4Jd., and in 1937 7d. Future Procedure. “Ulfder the scheme which the Government had decided upon,” said Mr. Butland, “it is no longer possible for producers to export direct through the board, and in future all honey for export will be controlled and supplied through the Internal Marketing Department. Sales made in future by the Control Board will be made on- behalf of the Internal Marketing Department, as its sole supplier,, and all returns will be accounted for and paid direct to the Internal Marketing Department. “From the information supplied to board members it is clear that it. is intended to pool export returns with returns from the department’s local marketing, thus levelling up the department’s pay-out as a result of the higher export returns. In other words the export market .is now closed to producers who do not choose to market their honey through the Internal Marketing Department aqd only the Department’s suppliers can in future enjoy premiums from export sales and then,, only on the basis of pooling with returns realised 1 in the department’s local marketing.” It had been clear to members of the board that in future the board is expected to act only after consultation with the Internal Marketing Department on matters of marketing and advertising policy and no longer has that freedom of judgment and action which it had exercised in the past. Members of the board therefore found themselves in the position where they were no longer free to exercise the powers vested in themjmder the Export Control Act and tliat their continuance in office would be to implement a policy which is directly contrary to the principles of the Act and is, in the opinion of the board, detrimental to the best interests of the industry. Board members individually and unanimously felt that it was impossible for them to continue in office under such conditions and that it was their duty to make way for the appointment of a board whose views were more in keeping with the policy of the Government. Scheme Opposed. For some time past the board had been convinced that a measure of local control would greatly facilitate ’orderly marketing and be of immense benefit to producers provided it were carried out on the right* lines. However, the board did not consider that a scheme which did not include control of grades an'd fixing of minimum local prices would bring, about the results expected by the producers. The board’s considered conviction was that the scheme decided upon by the Government could not do other than act to the detriment of producers. It made no attempt to control grades and prices or

to deal with strong-flavoured and darkhoneys which would not at present bring a satisfactory export return. It offered the gravest risk of either,flooding the British market with more honey than it could consume at an economic price or of inducing competitive sales on the local market at an uneconomic price, and the producer no longer, had the right to«xport as in the past. In addition, stated Mr. Butland, the premium on exported honey would go not to the producer whose honey was exported but to the department for the general enhancement of its local sales. If this advantage rested with the department on the local competitive market, it must, in the opinion of board members, inevitably lead to a lowering of the general net aggregate return to the detriment of honey producers generally.