STATE CONTROL

Evening Post, Volume CXXIII, Issue 60, 12 March 1937, Page 5

STATE CONTROL

ONION MARKET

FIXATION OF PRICES

IMPORTS LICENSED

I A scheme for the control of the j onion market by the Government was announced last night by the Minister of Industries and Commerce (the Hon. D. G. Sullivan). Minimum wholesale prices for the various grades have been fixed,, and the Minister announced commission charges for auc* tioneering, distribution, and brokerage. Importations are to be controlled by the Customs Department, and importers are required to obtain a licence from the Minister of Customs.

■ "For many years past onion growers have experienced difficulty in disposing of their onions at prices which compensate them for the costs of production," staled Mr. Sullivan. "The fact that New . Zealand growers are unable to produce sufficient for total domestic requirements has necessitated importations from Japan, Canada, and California at certain times of the year. The variable keeping quality of locally-produced onions, combined with lack of knowledge of the stocks and crop position, has often resulted in extreme gluts or shortages, and has also necessitated merchants undertaking importations based on insufficient knowledge of the true stock*1 position. Thus on the one hand producers have been liable to receive extremely low returns, and on the other hand, tho merchants have often lost considerable sums of money on their importations. ■' In view of these facts the Government has undertaken a thorough investigation of the position, and has deemed it desirable in. the public .interest to formulate regulations, governing the supply and distribution of onions in the Dominion." REGULATIONS OUTLINED. The: Minister, in issuing his statement, also made available the following digest of the regulations which are being gazetted so that producers and traders will have advance knowledge of the conditions under which sales may be effected pending the gazetting of.the regulations next week: — ' "The regulations do not apply to the retail sale of onions. All onions sold wholesale must be either'first grade, second grade, or picklers. Ungraded or under-grade onions may be sold only by publicl auction. AIL onions intended, to be sold as graded onions must be examined and classified for grade by the onion grower. All onions for inclusion in any grade must be sound in every respect at the time of grading. First-grade onions must not be less than 1 Jin in size, but may include not more ■ than '25 per cent, by weight of onions under- ljin, but not under lin •in size. Second grade onions must not be of the size greater than IS in nor less than lin, but may include up to 25 per cent, of over-size onions. Pickler grade onions includes all onions the size of which is less than lin.; '• ■ * ' '■■■ "After grading, arid'packing into sacks the sacks must-be marked, as follows:—First grade, the figure '1'; second . grade, the figure '2'; pickler grade, the letter ;P.' Onions found to be undergrad_e when bagged must be marked with the letter 'B,' while ungraded onions must when- bagged be marked with the letter 'A.'. SETTLEMENT OF DISPUTES. , "In the event of a dispute arising- as to whether any onions have been-,cor-, rectly graded, the matter is to be re-1 ferred to the Director-General of Agriculture, who will arrange for the question in dispute to be submitted to, the arbitration of such person or persons as he may nominate for the purpose, and the decision of the arbitrator or arbitrators is to be binding on all parties. In arriving at a decision on any dispute, no account is to be taken of ■ any sprouted, soft, or ' decayed onions found to be present in the consignment provided .mat the total quantity of onions so affected does not exceed 6 per centum by weight of the whole consignment.. "With regard to the sale by public auction of ungraded or undergrade onions each island is divided into two portions. In the North Island the boundary line commences at the mouth | of, the Mokau; River-on the West Coast and extends in a southerly and easterly direction generally. across the centre of'the island to the Kaimanawa Ranges, thence northerly along these ranges to Cape Runaway on the East Coast. In the South Island"-the boundary line commences at Shag Point to the north of Palmerslon and follows the southern boundary,: of the Waitaki' County arid the eastern and southern boundaries of the Westland County, to the West Coast at Big' Bay. Thus New Zealand is divided into, four districts. Ungraded onions or undergrade onions must be sold only by public auction and only in the district in which they are grown, but they may be consigned for sale and sold outside that district with, the permission in writing, of the DirectorGeneral. ■ , ■' MINIMUM PRICES. . "The minimum, prices /; at which graded onions may be sold are fixed as follows: — "First'grade,'£s 5s per ton (22401b) I f.0.b., or f.o.r. nearest place where [grown (sacks extra). "Second grade, >£4 5s per ton (22401b) f.o.b. or f.o.r. nearest place where grown (sacks extra). ' "Pickler grade, £3 5s per ton (22401b) f.o.b. or f.o.r. neare_st place where grown (sacks extra). "The rates of the, commission chargeable for the handling and sale of onions of any grade or classificaition are fixed as follows:— "Auctioners: 10 per cent, of the gross sale price plus Id per bag as a handling charge, both charges payable by the vender. Distributing merchants [ and agents: V>. per cent, of the f.o.b. j or f.o.r. price (sacks excluded) such j charge to be paid by the' purchaser, j Brokers: n commission of 2s 6d per ton payable by the broker's principal. "Every onion-grower is required to forward 1o the director-general a monthly return showing his crop and stock position as at the end of the | month and giving particulars of quantities of onions sold or delivered for sale on consignment during the month. All sellers of onions, whether as principals or as agents, must also submit a monthly return giving particulars showing the quantities of onions sold during the month, the quantity received for sale on consignment during the month, and the quantity held for sale at the end of the month. COMMITTEES TO BE SET UP. ' "The Minister of Agriculture may appoint two committees, one for each island. Each committee shall comprise a Government representative who shall be chairman, two growers' representatives, and one representative of the merchants engaged in the business of marketing onions in New Zealand. Each committee shall, when requested by the Minister, advise to what extent, if! any, the minimum prices prescribed for the sale of graded onions should be varied, and generally as to any matter referred to the committee j