FARMS AND FARMERS

Greymouth Evening Star, 11 August 1936, Page 10

FARMS AND FARMERS

ITEMS OF INTEREST

(By

“Rouseabout”)

MARKETING ACT.

OUTLINE OF PROVISIONS

- In view of the importance to the dairying industry of the Government's marketing policy, a summary of the provisions of the Primary Products Marketing Act, with necessary explanations, is published below for the information of producers. . The Primary Products Marketing Act, 1936, which came into force on. May 15, is an Act to make better provision for the marketing of dairy produce and other primary products so as to ensure for producers an adequate remuneration for the services rendered by them to the community. The Act is divided into three parts, viz., Part 1, administration; Part 11, marketing of dairy produce; and Part 111, the New Zealand Dairy Board. By Part l a member of the Executive Council may be appointed by the Governor-General as the Minister of Marketing, and a department of State called the Primary Products Marketing Department, under the control of the Minister, is charged with the administration of the Act.

Provision is macle.-for the appointment of a director of marketing, who shall be the administrative head of the department. One or more assistant directors of marketing may also be appointed, and such other officers as may from time to time be considered necessary. Any member-of the Execti/ tive Commission of Agriculture may be appointed to be the director, or assistant director of marketing, and any officer of the New Zealand Dairy Board or any person who has technical._or other expert, knowledge of the dairy industry may be similarly appointed a permanent officer of the department. The principal functions of the de. partment are tn make all necessary arrangements with respect to: (a) The acquisition on behalf of the Crown of any primary products inaccordance with the Act or any other lawful authority that may be conferred; (b) The marketing in New Zealand or overseas of primary products whether acquired by the Crown or not. After the. coming into force of the Act no contract for the carriage by sea of any primary products intended for export shall be made except by

the Minister jot- in- conformity with conditions approved by. the MinisterTfie functions of the Executive Commission of Agriculture shall be abolished on a date to be fixed by the Gov-ernor-General in Council. While the commission remains in existence it shall have* such 1 powers as may be delegated to it by the Minister. All the functions of the department may be exercised by the Minister, who may delegate to the director of marketing such of his powers as he thinks fit. Any such delegation may be made generally or in relation to any particular matter or may be made subject to such conditions and restrictions as the Minister thinks fit. Similarly, any assistant director of marketing may, with the written' authority of the director of marketing, exercise any of the powers of the director. The direc- 1 tor of marketing acting with any assistant director or any other person or persons appointed by the Minister

shall have all the powers of’a edmmirsibn of inquiry appointed under, the Commissions of Inquiry Act, 1908; for the purpose of obtaining any information deemed necessary or of value to enable the department to fulfil its functions or to enable the Government to determine whether the functions of the department should be extended or varied.

For the purposes of the Act an account to be known as the. dairy industry account shall be established at the Reserve Bank of New Zealand. The Government has unlimited power to borrow by way of overdraft from the Reserve Bank moneys in aid of the dairy industry account, and the account may be overdrawn accordingly. Subsidiary accounts may also bo opened at the Reserve Bank or at* any other bank in New Zealand or elsewhere. All moneys received from the sale of dairy produce’ shall be paid into the dairy industry account, together with all other moneys lawfully payable into the account. All moneys payable by the Crown in respect of the price of dairy produce or the freight.

insurance, storage or marketing of dairy produce and all other expend!-’ ture incurred in the administration of the Act, including the salaries and allowances of officers, shall be payable out of the account. An annual report on the operations of the department as at July 31, together with statements of account for the preceding 12 months, must be prepared and presented to Parliament.. All regulations required for the purpose of giving effect to the Act may be made under the powers conferred by section 27 of the Agriculture (Emergency Powers) Act, 1934.

With a view to the promotion of reciprocal trade the Minister of Marketing's empowered to arrange the terms of provisional’trade agreements with the. Governments of other countries.

negotiating first with the accredited representatives of the United Kingdom Government, then with those of the Government of any other part of the British Empire, and finally with the accredited representatives of the Government of any other country. The basis of any such agreement shall be that, in consideration of the purchase of any primary products of New Zealand- by the Government of the ovei’-

seas country or of the establishment

or maintenance in such country of favourable marketing conditions for any primary products of New Zealand, the New Zealand Government will undertake to arrange through the Reserve Bank for the whole or a substantial part of the financial credits thereby established in such country to be utilised in the purchase of approved goods or classes'of goods produced or manufactured in that country.

MARKETING OF DAIRY PRODUCE . For the purposes of Part II the term “dairy produce” is defined to include milk,-.cream-, butter, cheese, and . all otlfey prpducjts ot milk or cream, whether derived.. by manufacturing processqs dr~ otherwise. if also includes any" other products of a kind derived fr<Jn-; ? tK§_- operations. usually carried on'TfL€dnjuftctfo'h*.with dairy farming opeffah'dris'(such as the rearing of calxes'-and-pigs), whether such products /are' 'actually" produced'' bn 'dairy elsewhere.* For Part II of the Act applies only to butter and cheese that is .mamifactured-from milk or -cream; delivdred ’to 'a dairy factory Off,. or aft any" timet after 'Kifgfist 1 next," but the*! Minister may, by notice published in the Gazette, apply the provisions of

Part II to any other kind of dairy produce. Part II does not apply to dairy produce that is both produced and consumed in the Chatham Islands. Wherever in the notes that follow, so far as Part II is ’concerned, reference is made to dairy produce, it should be noted that for the present the term means butter and cheese so manufactured. The Minister has full authority to make such arrangements and give such directions as he thinks proper for the handling, pooling, transport. and storage of dairy produce, the shipment of dairy produce intended for export on such, terms and in such quantities as the Minister thinks fit. the insurance against loss of dairy produce. and generally for all matters necessary in the exercise of any powers expressly conferred upon him by the Act. All dairy produce intended for export shall become the property of the Crown as soon as it is placed, with the concurrence of the department, on board any ship for expoiv, but the Minister may, by notice published in the Gazette, determine that the owner-

ship shall pass to the Crown at anyspecified time prior to shipment. Upon the ownership of dairy produce passing to the Crown the price to be fixed

in accordance with Part II shall become payable to the owner of the dairy factory or other person entitled thereto after deducting the amount of the levy (if tiny) payable to the New Zealand Dairy Board. The prices to he paid for dairy produce exported shall be ' fixed by Order-in-Couneil-Different prices may be fixed for different kinds of dairy produce, or for different grades or qualities of the same kind of produce, or for the same kind or grade or quality of any dairy produce by reason cif any special conditions or circumstances which in the opinion of the Governor-General warrant the fixing of different prices. The prices to be fixed for dairy produce manufactured on or after August 1 and exported on or before July 31. 1937. shall be fixed after taking into consideration the prices received in New Zealand for dairy produce of the same kind, grade, and quality exported during a period of from eight to ten years prior to July 31. 1935. The prices to be fixed for dairy produce

exported after July 31, 1937, shall be such that any efficient producer engaged- in the dairy' industry under usual conditions and in normal circumstances should be assured of a su£-_ iicient net return from his business to enable him to maintain himself and his family in a reasonable state of comfort, and shall be so fixed after taking into consideration the following matters: — (a) The prices fixed for dairy produce .exported before Julj' 31, 1937; (b) The necessity in the public interests of maintaining the stability and efficiency of the dairy industry. (c) The costs involved in the efficient production of dairy produce. . (d) The general standard of living of persons engaged in the dairy industry in comparison with the general standard of living throughout New Zealand. (e) The estimated cost to the department of maiketing the dairy produce concerned.

■ (f) The cost of the general adminis- • tration of the Act. ! (g) Any oilier mailers deemed Io be relevant. With regard Io dairy produce intended for sale for consumption in New Zealand, the Minister may determine that the ownership thereof shall pass to the Crown as and when the Minister shall specify by notice published in the Gazette. Alternatively, the Minister may determine that the department shall control the marketing of such dairy produce but that the ownership thereof shall not pass to the Crow’h. At any time after the

IV LJIC VIUWII. <ll fixation of prices for dairy produce exported or intended to be exported, prices may be fixed by Order-in-Council in respect of dairy produce intended for local consumption, whether it has been or is intended to be acquired by the Crown or is sold or intended for sale otherwise than to the Crown. In fixing the prices to be paid to any dairycompany for dairy produce manufactured by it (whether such price is to

be paid by the Crown or by' any pri-vate-purchaser) the general purpose shall be to assure to the producer a net return from his produce equivalent to the return' that he would have received if such produce had been acquired by' the Crown for export. In fixing other prices of dairy produce the general purpose shall be to ensure that the consumer will be able to obtain the produce at a reasonable price, and that the retailer and other persons engaged

in the distribution of the produce will receive a fair and. reasonable remuneration for efficient services. Subject to the foregoing general conditions the Governor-General may fix such prices for dairy produce intended for sale for consumption in New Zealand as he thinks fit. The validity of any Order-in-Council fixing the prices for dairy produce shall not be questioned on anyground whatsoever. If. after prices for dairy' produce have been fixed, any dairy produce is manufactured of a kind, grade, or quality' for which prices have not been fixed, or does not conform in all material particulars with the requirements of the department, that dairy

produce may be sold only in accordance with the direction of the Minister. Every person who, whether as principal or agent and whether by himself or his agent, sells, or disposes of

dairy produce otherwise than in accordance with the directions of the Minister or at other than the appropriate price for that dairy produce, commits an offence against the Act. The giving or offering .of any unauthorised rebate, refund, discount, allowance, premium, or othei* valuable consideration in relation to the sale of dairy produce in respect of which prices have been fixed is also an offence. Liability for the commission of an offence against the Act is a fine of £2OO in the case of an individual and £lOOO in the case of a company or other corporation.

; NE'V ZEALAND JIAIRY BOARD i- .'Farf i-il of the Act came, into force t on' ; Atfgtfsf'l- Off" that date the New Zeaianct Dairy Board was reconstituted-."' The present Government members. were deemed to have ' vacated -their offices;-and. thereafter the’board now consists7,'of- five- members—viz., the present- four producer members amL-one' member as the representative r of'• tjie Gnyerjiment. Any one of- the ydcatiug. office may be up-, poipted to be the Government 'represefttatfvjj on :tlie Board. The’ present powers of the board with respect to the control of dairy produce intended for export or for salei

for consumption in New Zealand are repealed as from August 1. Thereafter the board shall not exercise any of its powers, functions, or discretions except with the approval of the Minister of Marketing. The functions of the board with respect to dairy produce, not being dairy produce to which part II of the Act applies, may at any time after. August 1 next be exercised by' the Minister, or by the board with the approval of the Minister, as if part 11 of the Act applied to such dairy produce. whether or not such dairy produce has been exported before the i passing of the Act, and has not been finally disposed of or is exported after the passing of the Act. Any such approval may be general or special, and may' be absolute or subject to such conditions as the Minister thinks fit to .impose. All contracts of the board subsisting on August 1 next become contracts of the Crown in so far as they- relate to the storage, insurance, or freight of the dairy produce to which part 11 of the Act applies. The property of the board in the national fern leaf design registered in the United Kingdom is transferred to the Crown with effect from that date.