STEPS TOWARDS REHABILITATION

Evening Post, Volume CXVIII, Issue 94, 18 October 1934, Page 20

STEPS TOWARDS REHABILITATION

Dairy Commission's Recommendations

COMPREHENSIVE SURVEY OF THE INDUSTRY

Council of Trade and Production

REGONSTITUTION QF THE BOARD

The most comprehensive survey eveij made of the dairy industry of the Dominion was contained in the report of/ the Royal Commission presented to Parliament today by the Prime Minister (the Rt. Hon.G. W. Forbes). Actuated by the crisis which is facing the Industry at the present. time, the Government set up a Commission with.'a wide order of reference to investigate the position of the industry and t<> formulate proposals for alleviating the problems facing the dairy farmers of New Zealand. The Commission has made an exhaustive survey of the; economic plight of the producers of milk products in the Dominion, and, .'as a result of its investigations, has initiated the outline of a policy whiclit isi aimed at rehabilitating the industry. The report of the Commission oommences with a general review of the development of the dairy industry in fNew Zealand in its relation to international trade in dairy produce, with particular reference to the marketing of produce in the United Kingdom.. jj?rom this point it examines the new agricultural policy of the United Kingdcim, with special reference to the proposed quantitative restrictions, arid places/ the initiative for future discussions with the Home authorities for the safeguarding of the marketing of New Zealand's produce in that quarter. M Of special significance to city 'interests are the recommendations relating to rural finance. Radical proposals for the reorganisation of the Dairy Control Board are contained in tHe report, which recommends the reconstitution of the board to provide f<ir a membership of eight, of which four members are to be nominated b;f r the Government. A reduction in the number of wards to four is also propog ed, as well as an alteration in the electoral system. - I The Commission has gone farther than dealing solely with the dairy industry, and has recommended -that there should be established a Council of Trade and Production consisting of. three members, who are to act as an advisory body to the Government in reference to the control of all primary produce. This recommendation/ follows on similar proposals initiated by Continental countries, notably Holland, for the purpose of alleviating the plight of farmers during the depression. Consideration is given by the Commission to the question of the local marketing of butter and cheese, and a scheme for the rati <?>nalisation of the local butter market was submitted. The Commission recommends that the question of . the rationalisation of the local cheese market should be left over in the meantime. ' . ■ / . The Commission submits a propiosal for the setting iip of a Rural Mortgage Corporation for the purpose of lowering interejj t charges on rural securities. An examination was made of this'; proposals for a guaranteed price for butterfat, but the Commission considered that suggestions |of this kind, however attractive they might appear on the surface, were inherently unsound- 33 id hedged, around with serious administrative difficulties, and could not be recommended. /' There were also a number df' minor recommendations referring to the quality of both butter and cheese and the need for more efficient herd-testing and more sanitary equipment. The Commission also referred at some length to the necessity for establishing new markets outside the United Kingdom irj [view of the depressed nature of the Home market. Without making specific recommendation.^, the Commission suggested that inquiries should be .made in various countries as to the pos abilities of New Zealand produce being acceptable there. Steps for the improvement/ of the quality of the dairy produce of New Zealand were also suggested by. the Commission, jj,'hich recommended the highest standard of quality for both butter • and cheese sold 'abroad. " / The very important aspect' of research work was also stressed by the Commission, which recommended that the Dairy Research Institute should be made an autonomous body with specific ■ powers. '/'■{'' ■ ■ " The report was signed Jby • Mr. Justice Frazer (chairman), Mr. G. A. Duncan, Mr. J. Gilkison, and Mr. D. O. ; Williams. ?/Sr. W. A. lorns, chairman of the Dairy Produce Board, was a member of the Commission originaTl)/, but took ill during the proceedings and left for Australia in September. ' The Commissi«ji had the assistance of Professor W. Riddet, of the Massey Agricultural College, and Mr. E. .L Fawcett, economic adviser to the Department of Agriculture.