THE DAIRY BOARD

Evening Post, Volume CV, Issue 122, 25 May 1928, Page 8

THE DAIRY BOARD

WASTING- MONEY / ■ ■ MR. GOODFELLOW'S CHARGES (By Telegraph.) * (Special to "The Evening Post.") AUCKLAND, This Day. A detailed-statement as to the causes which led up to his resignation from the Dairy Produce Board will be issued shortly by Mr. W. Goodfollo'w, He mentioned yesterday that his position on the board during the last f*ew months had been, almost intolerable, and tliat had it not been that he had felt it his duty as tho representative of a largo number of co-operative- companies to protect their interests, he certainly would have resigned some time since. Tho board as at present, constituted represented sectional interests, wasteda great deal of time, and was, in short, an utter farce. ' If it was to do anything worth while it must b& reorganised to suit the altered conditions. . It had failed beyond recovery in its big objective, arid should now be reduced to a maximum of six producer members —say four from the.North Island and two from the South Island —and their powers confined to the following matters:—Shipping contracts, marine insurance contracts, advertising overseas, dissemination of news, and authorita-' tive information on matters of educational value, etc., and the supervision of cold storage in New Zealand, in transit, and in Great Britain. To such a board Mr. Grainger, the present board's engineer, who was also a qualified accountant and had considerable executive ability, could act as secretary, and the staff practically eouldj be dispensed with. This rearrangement would drastically curtail the present oxtravagance and unnecessary expense. "USELESS ORGANISATION." "The sooner the industry . makes itvoice heard on this question," said Mr. Goodf'ellow, "the better for all concerned. For the last financial year the board levied on the industry to tho ex,tent of £60,565, and succeeded in spending all but £38,500 of the amount in one year's expenses. For the present year the levy has been halved, but the pruning-knife has not ben used on expenses except in closing down the London office, and when the balanco-shret is produced it.will show that the accumulated reserves have been drawn upon largely to meet this year's expenses in: maintaining an extravagant and useless organisation. - As the boaro*is notnow attempting to do the' major work for which it was formed and which alone, if properly done} would justify its huge expenditure, obviously that expenditure should be reduced to the minimum necessary for the 'satisfactory handling of what work it can do. . "I firmly believe that the'absolute control scheme as agreed to by a majority of tho' industry in the first instance was the best scheme for the marketing of New Zealand dairy produce,! and lam convinced that ultimately we will be forced by economic pressure to adopt some such national plan again. Much educational ivork, howevqr, will have to be done Defore the dairy industry will again be able to seize such an opportunity as it had, and hold faßt to it. ■' ■ "In the meantime the whole trend of events in the business world must force producers to; realise that combination and co-operation, on; their part is essential to meet the unified buying power of the' big groups now organised in the world markets. Recent combinations of buying power ,between butter and margariuc .interests and aggregations of those concerned with cheap food' for their members show producers that unless'they are met by combinations of selling. power their lot will ultimately be. pitiable. SPECIALISED MARKETING. "These groups are all formed, to buy cheap, which is contrary to the interests of the producers. Adequate returns to producers will be procured only by. business methods and proper- oversight at the marketing end. The industry can best help itself by establishing one or more strong organisations to specialise on the marketing bf butter and cheese, for without such special attention farmers never will get what they should." ', ' , . . Indicating that the step'lie had taken expressed the feeling of the majority of the board' members,; Mr. Goodfellow said that he did not know what' action would now be taken. The board had power under the Act to appoint someone1 to fill a vacancy. His term, had still two years to run. «There would be no meeting of the board until. 11th July, the date, of* the annual meeting, at which the chairman would be elected.