LICENSES TO SELL

Gisborne Times, Volume LXXIII, Issue 12092, 3 November 1933, Page 5

LICENSES TO SELL

N.Z. DAIRY PRODUCE MARKETING IN BRITAIN. BOARD’S PROPOSALS. PRESENT PRACTICE IN * LONDON. SALES UNDER CURRENT PRICE BEFORE STEAMER ARRIVES. SUMMARY OF NEGOTIATIONS. (Press Association! WELLINGTON, Nov. 2. Mr, T. C. Brasli, secretary of tho New Zealand Dairy Produce Board, issued the following statement to-day: “As there appears to be a groat deal of misunderstanding regarding the new marketing proposals, we wish briefly to set out the exact position. “In January of the present year the board received from its London manager a cable message conveying the recommendation of the advisory committee of the New Zealand Dairy Produce Importers’ Association of the United Kingdom to the effect that some action was necessary to prevent tlio practice of selling consignment produce under current prices before tlie arrival of the steamer carrying tbe produce, and unknown to tlie dairy company that owned the produce. This committee maintained that such a practice had the effect of continually depressing the market. “AVhen 'Air. lorns, chairman of the board, left for London early in Alarch, he had the instructions of the board to ascertain from the merchants what they considered necessay to give effect to their recommendations. Air. lorns interviewed a number of merchants, and asked for suggestions.

“Following upon this the New Zealand Dairy Produce Importers’ Association set up a committee to consider the problems of marketing. After a number of meetings the committee put forward to the full meeting of their association, certain proposals which were unanimously adopted for transmission to the board.

“When Air. lorns returned to New Zealand the board considered, these proposals, and after making some amendments intended to safeguard the interests of the industry, the board submitted its proposals on September 20 to a Dominion conference of 45 delegates, accredited representatives of dairy companies appointed from the different wards throughout the Dominion. This conference heartily supported the proposals. “In the main these proposals provide :

“(A) That in co-operation with dairy companies, the board shall allocate consignments to merchants. It goes without saying that this will be done with as little dislocation as possible.

(“b) That the board shall be supplied with full particulars of the prices at which the consignments are sold, with the date of sale, etc., together with particulars of all stocks held.

“(c) Regulation of f.o.b. sales. The board placed on record its decision that this particular regulation shall be so handled that f.o.b. or c.i.f. sales either for immediate or forward shipment shall be made possible. “(d) That merchants handling New Zealand dairy produce in Great Britain shall do so under a license issued by the board. A number of conditions have been suggested by the Importers Association and others by tho board and again let us .say, solely with the object of assisting the producers. The issuing of these licenses will naturally be discussed with London importers, and circumstances are bound to arise from time to time which will make reconsideration of the conditions necessary. NEW CONDITIONS FOR, EXPORT LICENSES. ‘

“To enable the new marketing conditions to become operative, certain alterations will require to bo made in the license under the terms of which dairy companies and proprietors at present ship their produce. These licenses are issued by the Minister el Agriculture, subject to such conditions and restrictions as may he approved by the Dairy Board. The new conditions for export licenses will provide that the board will have certain control over the allocation of consignments, and the regulation of f.o.b. or c.i.f. sales in New Zealand. Provision will also be made to prohibit sales of consignment produce unknown to a dairy company prior to the arrival date of the steamer, thus seeking to prevent a practice which so seriously undermines’ the market. “The hoard is moving towards amending the conditions of present licenses held by dairy companies, but it is unlikely that any of the regulations will come into operation for the current season, except perhaps the provision to secure returns of account sales, dates of sales etc., and to seek to prevent the practice of selling consignments prior to the arrival of steamers at less than the current maiket prices, which, merchants indicate, is continually depressing the market. CO-OPERATION WITH LONDON MERCHANTS. “To assure dairy companies of the earnest desire of the board to establish conditions that can be worked harmoniously with merchants, and to retain their goodwill, the board sent the following cable immediately after its last meeting on October 26: “Tho hoard is going forward to securing tho necessary regulations to put into operation the marketing proposals agreed upon. The date of commencement is not yet fixed, hut it is unlikely that any portion of the regulations will taka effect un til next season. Convey to the Importers’ Association an assurance of the hoard’s readiness to discuss

through deputation or fey, letter, any clauses with a view to securing the hearty co-operation of all interests, and making arrangements to work amicably. ’ * ADVERSE MOVEMENT AFOOT. •“A few days later it was learned that certain interests in New Zealand (not dairy companies or producers), were sending cables to the New Zealand Dairy - Produce Importers’ Association in London, which appeared to be intended to create friction between the board and this association and tho Board again cabled with a view to removing any doubt as to its anxiety to co-operate. The cable message was as follows: “In order to avoid any feeling on tho part of importers that the board intends to act in any way arbitrarily, again assure them that tho board fully realises that the success of the proposals absolutely depends upon the hearty co-opera-tion of the importers. Hence the board is willing to discuss any clauses of the proposed regulations, with the intention of making them satisfactory to .both parties. Although the hoard is at present moving to secure the necessary re- 1 gulations from the Government, I this is only to enable general powers to be obtained. These general powers will not include any details whatsoever, which will be a matter of arrangement between merchants and the board.’

REASSURANCE FROAI METROPOLIS. “To this the following reply has been received : “ ‘The Importers’ Association ask us to send the following message: “The importers Association appreciate your cables, and reciprocate your assurance of full co-operation. Would appreciate prior submission to us of the draft regulations to be asked for by you, to enable us to confirm the principles and submit any amended, details at the earliest possible time should such bo necessary.” ADDITIONS TO EXPORT LICENSES. “To this the following reply was sent: “ ‘Advise importers that their assured co-operation is heartily appreciated. The conditions which the board are establishing here take the form of additional conditions in tbe license under which dairy companies are at present expoiting. These will provide that licenses will be granted subject to tbe following additional conditions: (1) The board will have power to allocate the consignment outputs ; (2) there shall he given to the board copies of account sales, with all particulars of date of sale etc.; (3> the hoard shall have power to regulate f.o.b. or c.i.f. sales; (4) provision to enable the board to deal with practice of consignments being sold unknown to dairy companies prior to the arrival date of the steamei.

“The terms of the conditions of the license between the board and importers is entirely one lor discussion and arrangement between the board and importers, and will not be set out as the conditions of the license issued to exporting dairy companies.’