A FORWARD MOVE

Evening Post, Volume CVIII, Issue 122, 19 November 1929, Page 10

A FORWARD MOVE

CITY MILK SUPPLY

TO-MORROW'S CEREMONY

THE NEW STATION

By June or July of next year, it is hoped, the Wellington City Milk Department will be housed in its new premises in Tory street. To-morrow afternoon the Mayor (Mr. G. A. Troup) will lay the foundation stone of the new station, thus marking another big forward step in one of the most successful enterprises the city has undertaken. The scheme was launched in the face of many difficulties, but its control was in right hands, and to-day the system is favourably known throughout the world.

Those who had control of the scheme in the early stages were men fortunately blessed with both vision and courage. For many years Wellington's milk supply had been far from satisfactory, and a crisis was reached when a number of suppliers, dissatisfied with the conditions under which they were called upon to work, threatened to divert their supplies from the city to other centres. Had that threat been carried out Wellington would have beer, left practically without milk, and the council realised the necessity for stepping in.' It needed a man with courage to undertake the job, for to set up a city milk department was to commit the city to a considerable expenditure on what was, after all, an experiment. It is known that there were members of the council who were extremely dubious about the wisdom of undertaking a system of municipal control, but fortunately Mr. C. J. B. Norwood was able to persuade his fellow-councillors that the scheme was on right lines. As a business man, Mr. Norwood no doubt realised more than anybody else that he was taking a big risk, but he brought all his enthusiasm to bear, and to-day he has the satisfaction of knowing that the city milk department is not only paying its way but making a satisfactory profit. After seeing the scheme launched, Mr. Norwood resigned from the council, and the task of carrying on the work fell upon the shoulders of Councillor W. H. Bennett, who to-day is still chairman of the Milk Committee. It is largely due to the untiring efforts of Councillor Bennett (with the loyal support of his fellow-eommitteemen) that the scheme has made such 'excellent progress. When Councillor Bennett took over some five or six years ago tho department had a debit balance of over £11,000 (not surprising in view of the many initial difficulties '.which had to be faced), but it was not long before substantial progress was being made, and in April of this year the chairman was able to report to the council that last year's operations had resulted in a net profit of £.7000. A TRADING CONCERN. It is worthy of note that the department is conducted on strict trading principles. Since its inception the department has not imposed one'penny of extra rates on the ratepayers; in fact, the department itself pays rates. The department has met all its own charges for depreciation of buildings arid plant, and has found its sinking fund charges on loans, in addition to transferring portion of its profits to a reserve fund. More than that, it has been possible to write down the capita: of tho present station in Dixon street by £13,000, and to spend about £2000 in carrying out improvements at the factory at Rahui. In order to do all this, it has been necessary to exercise very careful management, and much credit is due in this" connection to the manager of the department (Mr. R. E. Herron). One of the main difficulties which the department is called upon to,face each year is the variation in the price of summer and winter milk. It may not be generally known that the department has during the winter months to pay the suppliers 85 per cent, over the summer prices. It would be unthinkable to pass this additional impost on to the consumers, and it is necessary to make some adjustment in order to enable the department to carry on satisfactorily. During the summer months, therefore, the department aims to make a sufficient profit to enable it to ease off the price to ,the consumer during the winter. Generally speaking, the department puts aside approximately £8000 from its summer profits in order to meet the winter losses, and in this way it'is possible to stabilise summer and winter prices. Inevitably, there is a slight increase in the price during the winter, but it is infinitesimal compared with the price which the department has to pay to the suppliers, who, in effect, are guaranteed the price they would receive for their milk if it were used for the manufacture of butter and cheese,for export. In this way, the department is able to ensure a satisfactory supply of milk throughout the winter season, and the supplier is assured of a regular income. MODERN METHODS. The new station in Tory street will be up-to-date in every way_, and will embody all the latest ideas in plant and lay-out as gathered by Mr. Herron during his recent trip abroad. The building as it will appear when completed has already been described in "The Post," and passing reference to the outstanding features will suffice at the present juncture. The factory building will be 195 ft long by 97ft wide. One big advantage of the new station will be the two separate entrances, ono facing Alma lane and the Other facing Charlton avenue. In the old station there is but one .entrance, and this has led to considerable confusion in the handling of ingoing and outgoing supplies. This difficulty will be entirely removed in the new station. Immediately at the rear of the factory building there is to be a large motor garage to house the many motorvehicles which are operated by.the department, and immediately against this building will be placed the department's workshops. Eighty-five per cent, of the machinery to be installed in the new station will be of British manufacture, and all will be of the very latest design and calculated to materially increase the efficiency of the station. It will be possible to fill and cap sixty bottles a minute, and the icemaking plant will have a manufacturing capacity of eight tons of ice per 24 hours.

The ceremony of laying the founda-tion-stone to-morrow afternoon .will be a brief but interesting one. Councillor Bennett will preside as chairman of the committee, and he will briefly introduce th Mayor. Mr. Troup will be presented with a trowel by Mr. Leonard Mills of the Hansford and Mills Constructing Company, who are the contractors and after declaring the foundation' stone well and truly laid, he will address the gathering. Mr. C. J. B Norwood will follow, and then an adjournment will be made to the Concert Chamber of the Town Hall, where a number of guests are to be entertained at afternoon tea. The main speaker during the afternoon tea proceedings will be Mr. E. A. Wright, M.P., who played a big part in launching the scheme.