CAUSE FOR CONCERN

Evening Post, Volume CXIII, Issue 60, 12 March 1927, Page 10

CAUSE FOR CONCERN

PRODUCERS TO DECIDE

EXTENT OF CONTROL

While expressing concern in regard to the position of New Zealand butter on the London market, The Prime Minister, in a statement issued last night, declares that as the Dairy Produce Board is elected by the producers,' the Government cannot interfere with the exercise by the board of its statutory functions.

"The position of New Zealand butter on the London market, as disclosed by the latest information," said Mr. Coates, "is far from satisfactory, and gives cause for concern. I should like to make it perfectly clear, however, that the regulation of the disposal of our dairy exports has been vested -by Act of Parliament in the Dairy Produce Board. This legislation was the outcome of a very strong demand by the dairy producers in New Zealand, and was only passed aftnv long deliberation by Parliament, in addition to which, as provided by the Act, a referendum of the dairy producers was taken before the Act oecame operative. "The board is a body elected in the main by the producers themselves, and neither I nor the Government can interfere with the exercise by the board of its statutory functions.

"Shortly after my airival in London, last October, I met, in compliance with' urgent requests, not only the representatives of the board's London agency, who happened to be in London at that time, but also representatives of importers, multiple shops, blenders, wholesale merchants, and retailers—in fact, practically all che interests that had for years been handling in the United Kingdom our dairy .produce. As a result of these conferences, and after surveying the position as fully as possible, I telegraphed, on 27th October, to the Acting-Prime Minister, for the information of the Government and the Dairy Board in New Zealand, a statement of my considered views as to the best course to follow in .the circumstances. The views transmitted by me have been made public. "MUST HAVE GOODWILL." "I was also much impressed with the importance of the principle that to ensure good business in commercial life you must have goodwill. I still firmly adhere to that opinion. I understand that the opinions expressed by me were not acceptable to the, board.

"I want to point out again that I had no power to interfere with the actions of the board, but, as one deeply interested in the welfare and prosperity of the dairy industry, I hoped that my views, gathered from what I considered to be reliable sources, would have been helpful to the board in deciding on its line of action in the disposal of our butter on the English market. "Following upon the decision of the board to maintain its policy, a further meeting took place between myself and the various interests concerned, with a view to facilitating as far as possible the arrangements made for the disposal of our products. As a result a committee was set up consisting of representatives of the Dairy Board and of interests involved, with the object of providing a suitable working arrangement. This committee, as I understand, is still operating. CAUSES 'OF TROUBLE.

"For the information of the public I may say that the latest advices received by tho Government indicato that, although there is considerable hostility on tho part of tho trade to the policy of price fixation, the influence of this factor in bringing about the present diißculty should not bo over-estimated. There are, in addition, such causes as the general trade situation and the decreased purchasing power of the people owing to tho long duration of the coal strike. Last, but not least, this season's operations have been greatly prejudiced by the necessity of quitting approximately 000,000 boxes of butter held in store at tho beginning of the season, for tho accumulation of which the Dairy Board was not responsible.

"Although in the first instance it is the dairy producers who arc most directly concerned, yet in view of the magnitude of the interests at stake the welfare of the Dominion is deeply involved. At the same time I strongly deprecate tho introduction of party political feeling into this matter, and I hope no attempt will be made to do so. "I fully recognise that in connection with our dairy produce thero is ample scope for tho board to sco that a high standard of quality is maintained, to arrange transport, insurance, and storage charges, and to supervise marketing in the Old World. Thero seems no necessity to make any change in those respects, but I would point out that how far theso operations should go is for the producers "'•themselves to decide. "No doubt tho views of tho producers will be considered by the Dairy Board in determining its future actions and policy. The Government will be only too glad to asist the board, if asked to do so, in finding a solution of the present and any future difficulties connected with the marketing of our dairy produce. , I understand that the board is shortly holding a special meeting to consider the position which has developed in London."