CHAIRMAN DEFENDS BOARD

Evening Post, Volume CIX, Issue 63, 17 March 1925, Page 15

CHAIRMAN DEFENDS BOARD

- WAIKATO AND THE WAED

SYSTEM.

(BI TKLKQRAPH.—PRESS ASSOCIATION.)

PALMERSTON N., 16th March. Mr. W. Grounds, chairman of the Dairy Export Control Board, opened the campaign on behalf of the board's policy of; "absolute control" when addressiDg a large body of dairy producers this afternoon. He was accorded an excellent hearing, and at the conclusion a vote of thanks and confidence was passed in Mr. Grounds as the board's chairman. An attempt to move an amendment was not taken seriously by the chairman (Mr. S. A. Broa'dbelt). Mr. Grounds outlined the reasons which prompted him in deciding to hold the first meeting at Palmerston North, expressing the hope that he would be able to explain hany matters which had. led members of the dairy produce, delegation to Lpndon to the conclusions contained in their report. He had come to Pa mlerston North first because he had s received invitations simultaneously from the Manawatu and West Coast Dairy Associations and the Dairy Farmers' Union. He also came to the Manawatu to meet some of the alleged misrepresentations and misunderstandings which had been made through some of the papers. It had been said that the Control Board was dominated by Waikato influence. When he had refuted this, it was stated that surely he must have known that if it had not been for the influence of the Waikato companies the ward system of voting would have been granted last year. The speaker claimed that he had no knowledge of this, but, on the contrary, had information to the effect that the request for the ward system of voting had been declined because it would have meant an amendment in the Act. It had also been said that the speaker was opposed to the ward system, but there was no justification for that assertion. To-day the board and the speaker recognised the desirableness of the ward system, of election, but it was one of the points which did not come within the scope of the board's power. VBome of the opponents of absolute control," continued Mr. Grounds, '-'recognised the necessity of limited control. They agree to everything else but marketing, and ask for it to be left to the Chambers of Commerce. I agree that it is necessary for farmers to specialise'in economic production and understand their point of view. We want to produce a high quantity at the lowest cost in order to become efficient and compete with the other markets."

The speaker dealt with the discoveries of the board's representatives when abroad. They returned with the conviction that the laxities at both ends there and at Home could only be tightened up by the entire control of the Dominion's dairy produce. He urged the necessity for a national brand, and touched upon the question of boric acid fn butter. In discussing the interpretation of the Act, the speaker said that among the criticisms which had been levelled at the action of the board was one that the Act had been brought in under false pretences, and it was surprising that this allegation .had been woven into tho legal opinion.;' WOEKING OF THE ACT. In respect to the working of the Act, to which' attention was recently drawn, one of the papers had secured a legal opinion, and it had surprised the speaker to see that the assurance that absolute power would not be taken had been woven into it.; The board had secured .an opinion from ita counsel, who stated that it could, under the present Act, exercise absolute control, though in the event of litigation being brought the Act was supplemented by Order-in-Council. The;board did not want to be harassed with legal opinions, but wish- . Ed to get on with the work, and do it properly and well. The Act was quite secure in respect to absolute control, but - not in respect to limited 'control, for there was no such thing. Limited control was no control at all. What justification was there for saying that the assurance was given that absolute control would not be taken?' What had been said was that a complete.investigation of tlie position should be made by tho board before any conclusions were formed. He saw evidences of factories k in their own way instituting » tysteni

of control too. Let there be no further comparison regarding absolute and limited control. Those advocating the latter said : "Let them fix the insurance, advertsing, shipping, and investigating ol the markets; but have no control of the markets." He declared that he recognised the source of much of this opposition. 1 The speaker submitted that while he recognised that some interests in business would certainly suffer, yet in the improvement of any industry, it would always be so. He instanced the burning down of factories with new machinery at the beginning of the industrial era in Britain, but the process had to continue. The competition from f.ob sales was only secondary. It was desired to maintain the same channels of marketing, provided they were efficient. Apart from regulating shipping, which involved the pooling of produce 'for returns, how were they to develop new markets? It was impossible, unless there were one control of shipments. Want of pooling? asked the speaker It was frequently declared that factories had a,.rooted objection-to pooling. He admitted this', ana declared thatTmost of this objection arose from the experiences of the war. Wherever scientific marketing had been undertaken, it had Pt°«T a auccess- Cranberry growers °i Wisconsin, and citrus fruitgrowers of California were instances in this respect. Based on the board's experience also, pooling scientifically done was a sound proposition. CONSOLIDATION OF INTERESTS. Mr. Grounds dealt with the demand of a particular brand of butter in the United States as a result of what could be done by push and" advertising. Where is the finance coming from ?. queried the speaker. It was coming from the

sams merchants, only it would be done in future through the board instead of through the indivtdual'rfi'ctdrigß'CXThft" speaker related how delegates secured their information in London. The delegates had- seen, many' weaknesses,'.and' did not want producers to be subject to" ■some of the undermining influences which governed prices; "They., heard of .'•■' the antagonism;of. Tooley street,/but- merchants there recognised the' advantages of a stabilised market, since they knew that by it would be regulated the amount 'of produce which was to pass through their hands. The stabilising, effect of this consolidation of interests in London would tend to increase the stability o£. finance rather than.'impair it. „..; ; Questions were asked' as to ' wneth'eT ■the board could guarantee the same advantages as producers ..were getting at • present.- , .-..' ...-.;?• ... s ■-.-... , "We say yes, if you want if? Bold:in the same way," -replied Mr. Grounds, "but we do not want that. "We want the market stabilised and a system introduced under; which ;we; pan sell- pro-! ■duce with much' better results'. Any fac-* s ,tory which decides that the price is not .^good enough can .hardly expect to, get some advances against a reservation. This is the soul of the whole co-opera* tive movement: make a sacrifice to-day and reap the greater benefit to-morrow. : If we think that by .making reservations ; we can secure better average prices that js our business,' and" finance " will' *be 'stronger under the board than it is at ;the present time, owing to the increased .stability caused, through Ihe cqnsqlida« ;tion through the;'boafd.?'V tooley' street Tnercharitij wheh"'in£efyiewedr- added &.£ Speaker, had promised the same financial 'assistance as hitherto. ': Subsequently, relative to this point, /Mr. R. Cobbe, a member of the Dairy ■Council, produced a cablegram ~. stating.

that, tlin 451as[ation-.from-New Zealand "hady^ieve*- MSt-the-Mry"Produce" ImP9^^'j:?rr^gSg<)ciatiiqa"ofrHL»iiduß' * '(comprising the whole of' the Tooley stTeet merchants) on the matter of finance" or "any. other-matter." ' v -■■•■■; r

--- Mr. Grounds warmly reiterated tifiat the delegation had discussed finance with" every single .member of the association. ,'.- '.v"'' ".:'"■ •■■'■-. ■ -.;