DAIRY EXPORTS

Evening Post, Volume CIV, Issue 144, 15 December 1927, Page 10

DAIRY EXPORTS

IoARD'S LICENGEPOLICY

Consignment or f.0.b.?

S " ■- "Evening Post/< 15th December. discussion took place at the meeting of the Dairy Produce Export Ifoard yesterday on export licences. Mr. William Grounds (chairman) reviewed representations made by the New Zealand Dairy Company and other exporters contesting, the validity of conditions of the export license, a matter that had fully engaged the attention of the board at its November sitting. In ■ the meantime the I^gal advisors to the board had reported that all representations made on this subject had been carefully reviewed, and they efcw no reason to depart from their previously expressed opinion regarding' the validity pf the board's action. -CMr. Ground's opinion as reported t6 ?£Fhe Post," wag as follows:—"Regarding me provision in the licence'for the deKfcery oF copies of accounts sales to the JJondon office of the board, and power to strange for audit when necessary, notwithjfcanding.any new alignment of forces outj»le or inside the. industry, Mr. Grounds ijys he is satisfied that this provision substantially represents the desire of most Of, those who have been responsible for 1 the management of co-operative companies." ; - ;

J MOTION NEGATIVED. >.sThe report of. yesterday's meeting of the Ward showed that the motion of' Sir. J. 8,. Hine, that clauses 6 and 8 of.the export licence conditions be rescinded, was negatived. These clauses relate to the declaration required to be made by exporters regarding f.o.b. prices, fourteen days after shipment, and to the power of board tQ arrange for audits on behalf of co-opera-tfre companies. " . ■. . ■ '■sla a circular to dairy factories issued fey the board last October, it was stated that the board'had decided that, as Mr. 33?. E. Davis, the London manager, would have an opportunity of-handling copies of. all account sales in London, and would be able to advise the board as to the necessity or otherwise, of a continuous audit, the question could be held in abey«stce in the meantime. The board- was generally of" the opinion, however, that an extensive. audit, such as was instituted vUhder the policy of absolute control, would be unnecessary. It was further unlikely tEat a continuous audit of any dairy company's accounts would, be undertaken without consultation with the dairy company concerned. .

. DISSENTING COMPANIES. ?The chairman had already publicly stated that five companies out of 500 registered^ in New Zealand refused to sign their acceptance of the licence conditions attached to export trade under the present system of limited control, until the right to) export was denied them, when they quickly came intp line. •■■■'" «Vlr. Grounds explained that the board's object in requiring the information was "not to pry, undermine, or discredit, but to guide, assist, and protect." He maintained that an examination of the conditions revealed the very remote possibility they offer for affecting the position of Belling factories. "Particulars of prices at •which parcels are sold f.o.b. have to be Bjibmitted fourteen days after; shipment," Jig said. "This means that in many cases particulars will not be required until Wontha after the sale has been made, thus ta/ving no effect whatever on the selling position of any factory. On the other hand, valuable information as to the relative advantages of the various forms of celling will later become available not regarding the specific actions of any parcelling will later become available not regarding the specific actions of any particular c<jmpany, but the general average resulting from particular methods of selling and of' particular markets. Comprehensive figures covering a prolonged period which hava been impossible to obtain under' pre-exist-ing conditions," Mr. Grounds holds, "should aid any who may be still undecided, arid lead to better management. Conditions apXifying to licences to export from Australia Inquire that particulars of, f.o.b. sales, incfading price and name of purchaser, shall be" submitted within seven days of shipntienU '

make clear that it was not desired i»= any way.to impede the movement of eSiy company desiring to sell or to influence ssle negotiations, it was decided to extend tlie period for a return until fourteen tTiiys after shipment, and to cut out the d^tnand for the name of the purchaser," said Mr. Grounds.