DAIRY INDUSTRY REACTION

Evening Star, Issue 22326, 30 April 1936, Page 8

DAIRY INDUSTRY REACTION

QUESTIONS POSED ON GUARANTEE SCHEME WOULD INDUSTRY BE LIABLE FOR DEFICITS ? COSTS MAY OFFSET ADVANTAGE [Per United Press Association.] WELLINGTON, April 30. When the conference of the Dominion ward delegates of the dairy industry was resumed to-day, a series of questions and decisions framed after the conference yesterday’ was placed before the Minister of Finance (Mr Nash), who was present again, with the Minister of Agriculture. The point was stressed by the chairman, Mr Murdoch, that no resolution or opinion expressed at the conference should he construed as endorsement by the industry of the Government’s proposals or for the steps taken. He said the delegates had not had an opportunity of full discussion of the proposals of the Primary Products Marketing Bill with those' they represented, and consequently they were not in a position to take responsibility for advocating or agreeing to the proposals. The first clause of the prepared memorandum recorded, thanks to the two Ministers for the opportunity of examining the Bill, and their assurance that any suggested amendments in the machinery clauses would receive favourable consideration. The rest of the memorandum states that payment for cheese should he on such a basis that it would enable an ordinary cheese factory to pay out l]d a pound for hutterfat more than can he paid out hy a factory manufacturing butter. “That this conference is deeply concerned as to the possibility of an accumulated deficit as between the guaranteed price and market realisations, and wishes to know, if this deficit should accumulate over a period of years, whether the industry would bs ultimately liable for this deficit. If so, this conference would register a protest against such principle.” “ It is the unanimous opinion of this conference that the Dairy Board should continue the handling of export butter and cheese through its head office and branches right up to the time of shipment. “ Will the Government make payment to the dairy companies’ own banks free of local exchange. “ As the hanks will lose any profits they have been making on London exchange there may he a tendency to increase overdraft rates. Can the Government give any assurance in. this connection ? “ That this conference views with grave concern the proposal to fix prices for the next season on the basis of the average price paid for the past eight or ten years, as it fears that the increased costs may fully offset any advantage obtained. “ Will the Government include patting in its activities? “Will the Government become responsible, and continue to advertise New Zealand dairy produce in Great Britain? “ Does the reference to rearing calves refer to pure-bred stock as well as to ordinary bobby calves? “ Until such time as a Gazette notice is issued will the marketing of casein and dried milk, etc., be allowed to continue as at present? Certain dairy companies have made contracts for several years ahead, whereby they fire being financed by London merchants. Does the Government’s guaranteed price policy cancel the dairy companies’ liability in this connection ? “ In clause 17, after the words ‘ New Zealand,’ it is suggested that the following be added; — 1 Or on which two months’ storage has been incurred.’ “ Can the Government give the conference any particulars regarding the premium it will pay on quality for both butter and cheese? “ Does the Government’s scheme of guaranteed prices envisage any proposal to limit _ the quantity of dairy produce on which the guaranteed price will be paid?”