CITY MILK SUPPLY

Evening Post, Volume CVII, Issue 109, 9 May 1924, Page 4

CITY MILK SUPPLY

FINANCES ON SOUNDER BASIS

COUNCIL AND NEARBY FARMER

Two important reports dealing; with' the city milk .supply I scheme were laid before the City. Council by' the chairman of the Milk Com'mjttee, Councillor .Wi H. Bennett., last evening.. The first dealt .with-the improved financesfof-the scheriie,; and :the: second;-yviih"the setting up an inquiry -board intoi:all 'aspects of the departnient's busiriess.'..': .',:' ,':',

GouricDlor Bennet's .first>r'epoit'-was as follows:—J ;'.--).".".,J-v::-":'''' ■■''■':i'--'.*--.;.'-:!-'-; '■ X.v

-■■.;;■ "-The v- fujl i detailed :sta^ment of accounts in, cphnectipn'witli,: the: Milk ' Deparjimentf or. the year- ending,3lst. March last is riot yet; ready if or.distribution. I Mveihoweyer^'sufficient data rto; hand to^ give you a ■correct■ abreviated■ statement' qf ;.pui> present .financial /position as regards; bur. last! year's ii trading; i . . .;■' \ '; ■"■' 'It' gives .me pleasure to state that our year's work'shows a profit of .£3,721 13s •7d, :"to; which\'is aclded ;£7o6..4s"2d^balJ ance. of suspense: account, 'iriaking.'a total credit v pf)£4,427 ; 17s 9d. -After '-wiping out • ;■ last .-.-. year's : . debit1 balance 'of ,32919: 1,4s 9d, \we ;'commence^^ {the ,:prejsent: trading.year yith; a credit of £1508 i38.- f ;^';M:: : ;:;r:.;^v.^'; i ;V.'.,.-■■;-,■■.;;.

■' t "As regards'the,'suspenseVaccount*'it :,;.rwill he remembered that at 31st (March; /tKe :; sum;:bf'£7l42 -16s :;id was 'put; f'nsuietoanbet/^eyeral^dispnted accounts. ; t'rbm.- this acoojiht1 -we have': paid, theV.'f qj--. (owing-;,; ataburits i-rF-inal; ■ .payment' to' Rahul Co^opV;:Dairy Company,' for 1922----1923, .'..-supplies^ £7.36 ■; 13s ■ 'lid • compensation ;to'Mrs>'-Brown, £500'; !co'mperisa'tibn: to' No.''4 :X)istributirigVC6: • arid: legal '■Bxpenßpsy;:£i99'.j.Bs /.Farmers'■. As-' |sdciatiori;;:;£SOOO,; :total, "J36436; lls iid.;' (leaving ..the"balance* ;bf ":£706..4s ",2d;\' re; ferred^toafopvey;; ;■';;; ■';■'<;■ cSk); T ■■..-■',■>':/■ ■'; STABTtNG;>AMi4jn3': SQu)^^;;' ;■ ;"I-:tein jsafel^sayi'tHat'thejcpmmrttee' is;\nbw, i«: ia -pjositidh vtoHstart fair'';and' square;:';ahd''it;win';be':their',dutyito.sn^ deavpur ;,to'.'^keepif the'-'departriient : in 7a; sound positibniwhilst giving "tHe-fconsum-;; ,ers/the'benefitVbf all..that/is-pbssibleiwitli' economical ;vr;>i-fcing^^jWe haye': reason 4b hppe:';th;it .fat)|he '.end^pf ■' ithis ' iwinieiv seaspn.tlie^iietEiil^price;\villvbe} suchnas ■'to; give' : entire satisfaction;"/.V;'?'!.V^ ;■.■:' ■ tiwejitiHyill^be'tEeXcoin-i mittes's, dutyl, to;:recommend::, the ;c6urK \cU.'_to;'Set;;aside;.ti--;^ercenilage-,']li6l;'--gradu^' ally-reduce^a-somewhat;inflated^..capital- ;- /aceountV.unaypidably 'built up;m \the earlier. ;; stages "<.- of; | ouiv .operations/; iri? laltera-' ; tipns ;. to :•'. bo^tr buildingsl ,'arid ■',^pla'ntL <\: •It ■ riiay jtlso, b'JB /wise {to"build up 'a , .rebuilding :'a 'factory:, iii '/a rijpi-e' suitable, locality; better.'adapted for 'our! work.l-.ln. '.conclusion,'!:, I -think .the -council; is.. ;tb;Jbe; ,'cbngratulated, bnX the '-position.':'of. '■ the; Milk'D^artmenit.".; :,^/V:iv'v:.).; .<;>-'■• •The A. /Wright/; ;was;;,ii;ver'vr gratifying; pne^ as A , seeined■■■to' s*h'pw,'that, in spxtel pfi'yery, ■-s;reat; difficjulties tthe';cbmrri:ttee..'had. now, ;be?n ': .able;; to>plaice their ,'fmsi^ces' '^pit^ai .'satisfactory^fobting-Ci",;::^'^';^:1: -:'r'M : .'•.-?

>;:\C6.uiicillbr O.iH.: iGhSpniain s^aicl that, life^ ■topi 'iy.ai';pleased■ witliptli'e, report 'brought' .dowiivbu^,li^Svduld; ihllve iteenJStill-fiir-; iherwpWs^^.liaid'/rtKe/'^ininiittee'ViJsaid': /56methirig'o£fred^cing,thev'priio;to con-: lumersi;^ Hiere wasinci,^uestionithatHlie Drice high,'; and thatjt; was Slaying ■Jts!:^eot;.uponrtU'e/sphein^aß/aj^h6leii;by . iiicreasing.J.the 'competition.'■■ from outside?

;|";';lfc;Swas ,;always;itlife'/aini.; of'-the .com-;; .mitte'ej;replied-vCo'u'ncijlor.;Gaudin, to■:re--: diiee/j;he:,price/of .tiiilk',\buthe '-. remindedV counciHors/rthat , last; > winter the \commit-j ■;t'ee>:lMd';'ji;re^^mehdeci;'.'{ji.ffiat^ith'e:}pMGe'- . shotiicMe/ Sd^: but. the'jcquncil' Jiadl'nked' it at'17^d;. and.the/result, -was :that-'the department lost jyeryheay^ 'againfta * commencementv.-pf /underselling before'the';:ppsition^warrapteIdv:tlie?bring-; itjg' dbwn^of' prices!ilae.-^pmmitjiefi^Would ; straiglitway;'? beY imprecisely the', .same;' iposftipn,,,;again^;.vOyei^i^d'ii-;Aarges>Avere; .high at-presentj^knd there was'/ni^dc-übt that. :'ttfe;.fsmeme'-UyaS;V'pyer^capitaUsed,.'' 'but > it; was :; hoped V. that-'.. thp?e.;.. charges would; now,;beffeduced.: ~- -;\yhen the: movement .; for -. a; 'muriicipall^controlled - i milfc' I supply;; cbrhmencedsthe'^cry^^wasYoVJive ;.Us y -a;VbeHeV-!3ryole r 'and^^e^i^i]l:noit,':inind . paying for it/ -;V There yras no'.doubt■tliat.. 'a* better/article was : Iwirigygiven, but; a/ cry-went ".'up'.' for/: all. ;ihat,/. : bu't v .tKe,:'peb'ple': •simplyVcbuldn(^t;have'iti.atv.bbth^en^s..r:i i ';; v ;CoUiioi^6r''3ftitic^6E|;'BMi:;that';t?i6':>higs-. price $he -council, had-. tq.' pay\--jfaimers', for winter-supplies had;a/;%rgat;fdeal/-|p/;aVp; with.thes high price/tq;'c'6nsumers.;;i'He .paid-, a.Warpi. tribute :va'st,ampunt/ ,6f wPrk dono by';Councillor,:W.'! H.! Beii--nett.; tf. vfc ,'■; ->.v!"\V.:. j;.; : .-,- ?'-.''•. ;v,-.\v 4 [ ~- ;'' /;\/i \.';■ ■■- 'THE:^QIJESriONj/DF^DELiyEKy.'1,;:; ; , Councillor J.; •B.uffls■'; maintained.;-. that ■itiie'V.ooiin^-s^o^-"'-^^^.-^^^'^^^^'^'.;!!!-for: the -delivery.. of Vmilk j "was to: see/that/aI'-^ to/;vendors, and fhe/'would: suggesfr'that the/tpmmittjee should, consider th'e.ab.aiidoriing ipf the .djeliy'eryi-'sys'tem,."otherwise' .prices-, would not, come .dbwn'.j' ,■•:*!; f ■ > ' A "Councillor,- liuckie: :v'.'^e -.•;■: 'can't /'■ go •baick,'"'. .->;.' v:;. ■'. ■?.?". ..,:■' v"i>:-":'-;;"; :i?.;-;: l,\' ,■;-■.■;■;: i ; :v'Councillor .Burns :":'Jou;niuatigo.;'back if the scheme is- toi^eimade.'to.'.payl'' ./; :;," Councillor iMontejth;:'* "juid./have , jomv ,-■ milk 'adulterated,! -".v-t -. ■!•.■■,'.'", :'■ '■-A ;• '•■' -'' ■■■, ■■■•v-:'; :;t;;'iCounciUor. Buhis : 'Trhat'-..has.! always ■■' ;been put forward: s ;It' can 'be prevented. :/lt .won't liold:" Water."-::, /v; :'-%/■";,..:' '•'■■"'^7> >"/-■ !\. Chorus: ;[ofv' councillors ;^''blij^* won't; '■:-: .Iti.was/far too. late .to^think.of; going: ::back,' replied' Councillor:'/tucfes'. V/With-' out.; distribution,/ tlije. ; city/milk ,; supply. \ was;' n|)t", worth "considering, and tp-day.-: "WpUin'gtdn/'^M/';thy^'o'^y,:i-:'ImHmicip'al]y^ .controlled ■.distribution in' the whole' of' .the -British :Enlpire r a patterh^o allvDbminipnsv.,:.;; It?"\vould!be ■^'retrograde' step v to -think', pf ; going back.upon; so/fine / a * scheme, i ' He,, too,: wished . to !o6mpliment \CbunciU6r;:W.: H.::Bennett;niost warmly' upon';the-work he.;.\yas. carding: on;' "!'■■'■"

:='■ council .losing- ;THE^T:Rii)E.i':^ ■; Tlie ; resulfc ; of ■'» the' ■.■,.- high charges,;,.said ,C6uiicilloi's.Earlpp,:^i\('aS' that the price to. consiuneri was.-far-top: hig^h-; -i 'M ; al consequence, .-tKe1- City' Council:.;\vas! losing, the best; of the :traiie to . the .•'•nearby:/,-' ,-farmersV '-_ '• "and, to-day .'■ the amourit'iof milk suppliedCirom the' depot ; was .daily;',decreasing,,''; At the 'present tinie;. the -council siippjiedLpnly -one-half of .the-city's 'demands. iT : / V\; ■'.'■'■. ...'■. 'Several ■ councillors :.- "No." ■ No!";; Councillor : Parton"; maintained"' i'ihat .figures; amply proved {his,contention.'- ■:- ■' V. The 'nearby ,farmers,i ; Councillor .B. ■G:; H. Buiti' 'were rib't charging. : : the same price; as .tlie cityj. they. -yvere: ohar"'ing 7d deiiveredi.and -BdCat; the dairy. Quite a few people.^valked/from Kel--burn to_Karori: to:buy:. theiiv.milk-from , the daii'iesi.. : : ■ v '■'■■'-■>•.■.'; -."-i'.-'j. ' .;-.'.'.--: - : Councillor tMouteith : "'That 'is .:■ proof that;,we iiro ehai-giiig .too iuucii;": '■' - - : . That1-was 'not: so, ■' iinsu'cred-.. Councillor- ..Burn. Tli a council" li-aa.cbarging;a price upon.the bitfiis tt hfld to pay Lo.Thc farmci\ :n iprice .wliivli ; liiiVl been fixed by ,a. board agreed, to' b'y/tlio coiincil iis a. fail- rcuirnto.the producei\..:.' . .-■■. i . '■;■:-pßi'tipV ANSvyEijisp;:,; .;,: I .'■ln. reply, Councillor. Ct;nneU remarked that iV «ocj pcrhapu, uate\yprtli^ that

councillors, who. knew' 'least of the scheme, 'had-most to say. '■■' The reason for the high price last summer was'tHat there hadibeen'.a loss of £7000 when the. council reduced the price the previous winter from 8d to 7±d. He would no^ make any promises for the moment, -but he hoped that the sis weeks' extension of the twinter period . beyond the tanners winter period would be found necessary, the summer'price coming into ■■ force when the winter price to farmers ended; and, haying-no-debit balance to make up, the committee hoped to: be able^to charge what was a fair and reasonable price, -The. council had not so much to fear in the matter of competition during the1 winter months, but in the summer anyone who had a few cows could rush .milk into the city. ; He would point out to Councillor Parton that during the last : eighteen morijhs ' overhead 'charges had been.:reduced ■cprisiderablyv : and, by setting aside a small percentage bveiva long period, the capital account' could; be reduced.to: a legitimate figure. Hitherto the department had be'en handicapped by having to ■ make up the deficiencies in one part of the year by charging .higher prices'in. another part, but it .was only by. making /each period pay. its own. wayjthat tiie .scheme: could be. made• sound.'•■■■'-'..- I:f \-,' :'- • ■..'. \■.'■■■:-

. .Councillor. Bennett referred again' to the. great increase in;..the-number of nearby farmers, consequent upon; the amalgamaT tionxof surrounding boroughsiVyrith",the city,, resultingi.in' the area within the two-mile limit .being so greatly: increased.' Had the: area been* limited to two oi*. even three miles from'a point lrithe. city-, not two : miles beyond the city boundaries, , the .position/would: have been very "different. ; Councillor vParton' had. said that nearby .farmers /were supplying, 50. per cent.; of the' city's -milk, but; th'at^ was riot correct y;they .did supply'3o per cent. Several,cases ;had been takeri to Court, J)ut:the/:Ma^istrate'>had 'held /that, the onus .wasvupon the' council~itd - prove :a sale,,.assuming that .the ;milk might ..-"be' given :a>yay or something of 'the sort, but-, that, proof: was-almost,an, impossibility. .-- It Vwould be :-for- the; cbinmittee, of :.the council,'to endeaypnr.to'vevolve a, means, of ;protectin 1 g • the scheirie.; . „" ' ' ; ■;.' 'l. aiti; proud ,-that, we;liave' reacHed a ;fi9™t^^-conandedvv:Counc'aipr'y;-B.ennett,; "when we ;,cari. show,' that; consuiiers '".will,' .during;. the) coming ? t summer,I:;get-: their milk,.at; a inpre reasonable:price.'^:■'.■-, :■■',-I.'i