DAIRY INDUSTRY

Evening Post, Volume CXVIII, Issue 114, 10 November 1934, Page 8

DAIRY INDUSTRY

EMERGENCY POWERS

COUNCIL PASSES BILL

MARKETING PROBLEMS

: General approval to the Agriculture (Emergency 'Powers) Bill was given .in the- Legislative Council last night, when the measure .was passed without' amendment'.;^; ''',■' ■■■■'-':.-.;. !'.i':: ■< '■■/■'■:'-S ■" \"':,'i:'-r< . .In moving ,the second reading, vine Leader.' of. the' Council" (the Hon.;; K. Masters) said -'that';'- an- outstanding' feature of the- Dairyj. Industry Commission 's' report had been its insistence on the 'highest quality of'the goods ..which 'N.ew!-;'Ze^an4';exportiid.;V;;.Ilhe:.repbrtvh'ad' alsp; dealtv;comprehensively.;> with-.ihe question:.of marketing ; organisation, which .was of•;the utmost importance.. During the last six'or seven years .proV duction' in".New Zealand: had;;increased tremendously, but the-price * had: apt been/" ■maintainedV In /■ .i act,' while' the butter exports :had .;' (increased 'by i,ooo,ooocw^, jthe': dominion, had received £1,579,000 less.f samevposition" appiied to. other primary products,; and; the income of; the Dominion had if alien :o£E. Thus the volume of imports had^also decreased. .The whole international trade situation had undergone tremendous changes during recent years. PRESENT TENDENCY. There had been a tendency towards self-sufficiency and economic nationalism, which had resulted in tariffs, quotas, and other impediments of trade. With the shutting out of imports by various countiies, competition in the United Kingdom 1 market had been intensified. Until a better understanding was brought about among the countries of tho world, international trado jvvould continue to be hampered. New Zealand had to view her commercial relations with other countries on the basis of a two-way trade.,-The Commission had made strong recommendations urging the Government to open up new markets. It was' no use the Government making treaties with other coun» tries until it was backed up by the produce boards which controlled' the primary products of the Dominion. Last year the Government had made a satisfactory treaty with Belgium, but New Zealand had sot taken full,advantage of the opportunities which had been offered to her products. Begular shipping services' wero necessary in the opening vp1 of trade with other countries, and these would be forthcoming if the trade made the services worth while. In. the main-the production end in New Zealand was satisfactory, but there was incomplete marketing organisation. The marketing side had been neglected, and the Bill provided for the necessary machinery for investigating new markets ,and the systematic supplying of existing markets. ' PRICE OF DANISH BUTTER. The Hon. M. Fagan: Why is there such a big dispaiity between the price of New Zealand and Danish butter? Mr. Masters said that a taste had developed in different parts of the United Kingdom for Danish biitter. The Dane? also had a totally different method of marketing. The Rt. Hon. Sir Francis Bell: There is no blending done. ■ Mr! Masters said that there wag no blending of New Zealand butter at the Dominion end. He did not think it was a matter of quality. It appeared to be a question of taste and marketing arrangements, although it was difficult to obtain a completely satisfactory explanation. Tho Hon. C. J. Carrington said that if he thougtit that the Bill involved a planning'of both primary and secondary industries under political control, he would vote against the measure, but he regarded it as a necessary temporary expedient adopted by the Government to extract thie farmers from the morass which they had entered through a want of true co-operation. He was opposed to any tendency towards setting up bureaucratic organisations. NEED FOR CONTROL, i The Hon. F. Waite said that there was no necessity for panic. They knew that until the basic industries were sound the Dominion would be-in difficulties. 1 The Bill was urgently necessary, and they should not be deterred by such catch-cries as "Socialism" and "bureaucracy." ,In the United Kingdom, where individualism wag traditional, the Bteps which had been taken to control the agricultural industries were much more drastic than those proposed in the New Zealand legislation. Tho dairy farmer knew that the way out ,was a difficult one. He was not in'favour of a subsidy and was opposed to State controlll of the industry. The Bill did not mean State control, but control ,by the industry itself. The dairy farmer in New Zealand was efficient and was a little tired of the advice that was continually being given to him by people with no knowledge of the practical side of the industry. It was gratifying ..to see that the Commission had recognised the value to the farmer of the exchange rate. Undoubtedly many farms were over-mqrtga'ged, and the problem of straightening 'the position was an extremoly difficult one. The farmers were not in favour of.writing off capital indebtedness, but wanted to see , the securities maintained. The or-ordinat-ing commission set up by the Bill was necessary in order to prevent violent changes from 'one form of farming to another, and to make marketing arrangement*. The Hon. T. Bloodworth said that he had no doubt' that all the proposals in the Bill could be carried out by voluntary co-operation, butj -unfortunately they did not have voluntary co-opera-tion, and could not afford to wait until it was brought about. He supported the principle of the Bill, although he was not entirely satisfied with the details. NEED FOR IMPROVEMENT., The Hon. J. McLeod said that the passing of the Bill and its functioning would have a far more beneficial effect on the'industry than, the immediate relief which was being clamoured for by a loud-mouthed section of the dairy farmers. r On the farm and in marketing there' was undoubted room for improvement. One of the needs on many dairy farms was a more adequate water supply, but that involved finance. He made a plea for more bacteriological research. It was clear that the main function of the Executive Commission would be marketing. The Bill was put through the Committee stage, read a third time, and passed without further' debate.