DAIRY ZONING

Grey River Argus, 13 February 1940, Page 12

DAIRY ZONING

FARMERS’ COMPLAINTS West Coast Company Criticised Allegations that Rotomanu rn }’ ers were receiving less for their bu - ter-fat by sending cream to West Coast factories than if they forwarded it to Christchurch, were made by a deputation which waited on tne Minister of Agriculture (Hon. W. Lee Martin) at the Rotomanu Public Hall yesterday. Mr. E. H. Hodgkinson, who occupied the chair, welcomed the Minister, saying that it was not often that a Minister of the Crown visited the district. Their visits were of benefit to the district. He hoped the Minister would have an enjoyable visit. , , Mr. J. Ryan, on behalf of the men working in the district, also welcomed the Minister. On their behalf he asked the Minister to convey their best wishes to Mr. Savage. Mr O’Brien also welcomed tne Minister. There were many questions the farmers wished to put before the Minister, who never spared himseii in the interests of the farmer. He welcomed him also to Westland and said that the Minister, during his visit, would obtain a better idea of Westland’s possibilities. The Minister, in reply, thanked Mr. Ryan for his hospitality and recalled that it was 51 years since he first came to the West Coast, being then employed on the Stillwater-Reefton railway line construction. He had a deep interest in the West Coast because his wife was a West Coast native. His drive that morning made him question if there was any sight comparable with the trip in the whole of New Zealand. He was interested mainly in the question of primary production, and was glad of the opportunity of discussing farming problems with the men on the land After recalling his own early days as a farmer, the Minister praised the work done by officers of the Department in assisting him to become established. He looked around the Coast and saw what appeared to be good farming land, he said, and hoped that his expectations would be confirmed. "We are desperately anxious that production should be maintained at the highest possible level, because the British Government has requested us to assist them in this great conflict, not only with men, but also with those things which are so necessary to provide for the men who are in the front line. They want all of our butter, cheese and meat, and I hope the farmers are doing all they can to assist. In our negotiations with the Imperial Government over prices, we sought Mie best price that we could get without having to ask the British Government to pay more than was a fair price. They told us that was all they were prepared to pay because they were not going to have the experience of the last war when-they were fleeced right and left. The price is intended to return to the farmer a fair and equitable reward for his labour, and I think that as you look through the prices being paid for our products, it can be said that the British Government has dealt fairly with New Zealand. There has been talk that we have not taken the farmers into our confidence, but that is not correct. I have been associated with Mr. Nash in all of the negotiations and with Dr. Cockayne we have had dozens of meetings with all those interested in the various aspects. Every step taken has been taken after consultation with them, and they met us on the whole in a very fair spirit, offering their co-operation in the work in which we are engaged.” The Minister added that he was interested in all of their problems &s farmers, and would be glad to assist them if possible. The officers of the Department were instructors and advisers rather than merely inspectors, and were out to help the farmer, and to become regarded as his best friend. He paid a tribute to Mr. O’Brien’s warm advocacy of his own visit to the West Coast, and said that Mr. O’Brien looked forward to the day when, without coal, gold and timber production, the West Coast would become a great farming area playing a greater part than ever before. Already one of the West Coast factories was graded highest in New Zealand, which indicated the good quality of the land, the stock, and the efficiency of the farmers and the factory. The Minister referred to his own connection with the Farmers’ Union in various offices, and thanked the speakers for their warm welcome.

Mr. O’Brien, introducing the deputations, said that the question of zoning was a burning one in the district, as it had been stated that some farmers were losing as much as £6O and £7O a year through being unable to send cream to Christchurch. Another matter to be brought up was the back loading of barley from Australia, and there would be requests from Kotuku as well as the matter of ragwort, most of which was growing on the main roads or railway lines.

Mr. John Ryan said that the farmers felt that the Golden Coast Dairy Factory had let them down very badly, as they had been told by- the previous chairman that only ad. lb. would be deducted.for bank charges, whereas they had received accounts charging them Id. They had been told rhey must erect cream stands, and this, involved the cartage of the cream to the stands by women and children. They had also cut out collecting on one day a week, and it had become necessary to spend money on more cans. By the fact that he could not send his cream to the Tai Tapu factory. Mr. Ryan said, he lost £BO the season before last. £96 last seaosn, and expected to lose £lOO this season. He considered that the Golden Coast factory was inefficiently and uneconomically controlled. They had been told by the ex-chairman of directors, who had since “got the boot,” that one manager would run the two factories, but there were two managers and two different staffs for a production of not more than 400 tons. There was no hope for the farmer as long as the present state of affairs continued. He asked that farmers be given the opportunity of supplying to other factories.

Mr. A. Graham said that the farmers wanted one efficient factory to cater for the whole district, and asked the Department to help them.

They felt that one factory would be more efficient than two. Mr. G. Honey said that the Golden Coast factory paid 2d. lb. less than Tai Tapu, and if they continued to run at a loss the farmer could not afford to supply them. The farmers equid close the factory if they refused to supply the company. It was a big problem in this district where they could put their cans on the railway and get them back the next morning. The Tai Tapu Company paid carriage costs from the farm to the railway. Mr. E. Armstrong pointed out the shortness of the growing season on the West Coast, and told the Minister that there was a strong agitation to have the Otira Tunnel made the limit of a zone. They did not want to be interfered with in sending cream to Tai Tapu, and he added the railway received the benefit in freight charges. Mr. J. Maughan said that as a supplier to Tai Tapu for 12 years he was very satisfied with the treatment he had received. The difference in their price and that of Golden Coast had enabled the farmers to keep their heads above water. He asked the Minister to arrange for adequate supplies of sodium chlorate for • the eradication of ragwort. Mr. A. Rothery said that Tai Tapu s pay-out averaged 1/4 as compared with lid. from Golden Coast. The farmers were progressing by sending their cream to Tai Tapu. In his opinion the only way that Golden Coast would be successful was if the Government appointed a manager to take charge of it.

Mr. W. Vallance said that the Golden Coast Company had operated for 18 years, and no one could say it was not efficient because it had never been given the opportunity. Their factory was the cheapest buy in New Zealand, and if they had purchased another place they would have had to pay £9OOO with another £lO,OOO for machinery. They purchased the Overland factory for £6,000, and to-day, as it stood, it was worth more. If the Government had any Vackbone they would have completed the zone on the Coast and made the farmers stick to it. He understood the Government favoured limiting the zone to the tunnel, but air Francis Frazer had ruled that those supplying Tai Tapu in 1936 should be allowed to continue to do so as long as they were on their farms. He had been a director of Golden Coast for 19 years, and he considered that the Coast should have the one factory which it needed. Golden Coast supplied* everything from a needle to an anchor, and one or two of those who were making all the noise were not even shareholders. Golden Coast was charging no service fee; the factory was efficient in every way but it was not given the chance by the farmers. Mr. L. Lingard supported the request to the Minister, and Mr. Armstrong said that Golden Coast had a mania for building factories. They bought too, much second-hand machinery and could never get efficiency with it.

Mr. A. Rothery (Inchbonnie) supporting Mr. Vallance, said that the Golden Coast Company had tried to do its best for all the farmers, but they had not given it a fair hearing. MINISTER’S REPLY. In reply the Minister said that he knew there had been a lot of agitation in regard to zoning. “I think that in some respects it is more parochial than if you took the broad view of the whole position,” he said. The Zoning Commission had very wide powers, but had set out to cause the least inconvenience to every section of the farming community. Over the whole Dominion he thought, while there was some difficulty in some places, there was hardly a complaint to-day. That was largely due to the fact that in the early stages, the pre-conceived ideas of those who supplied certain factories had been overcome, and to-day it could be said without hesitation that the zoning scheme was working extremely satisfactorily. The only difficulty being experienced was on the West Coast and near Ashburton. It had been a tremendous job in some areas such as the Waikato and Taranaki, and on the West Coast something similar was done by agreement with the supplies and factory. The result was that all except 15 or 16 who had been suppliers to Tai Tapu had come to a mutual agreement. There had been some little difficulty in regard to the interpretation of one clause in the agreement, the Golden Coast Co. claiming that they were entitled to certain suppliers which Tai Tapu thought belonged to them. He was satisfied that the decision reached over that was in keeping with the agreement with the companies. That was why three suppliers had to go to the Golden Coast Co. this year. Others who supplied Tai Tapu were to be allowed to continue to do so whilst they farmed their properties, and if they left rhern, the Golden Coast Co. was to get the supply. On the question of efficiency, said the Minister, he did not know if the statements made were correct. He assumed they were not wild statements, and that there must be something in them. If there was inefficiency it was right to change the directors at the meeting of suppliers, if they could find men to do a better job. He felt that the Golden Coast Co. should be given the opportunity of putting their organisation on an efficient basis. Just as he had. power to zone, there was power to de-zone, and if the company was not working in the interests of its suppliers, the Minister and the Executive Commission could make other arrangements. He did not know if they should do that until the Golden Coast Co. had the opportunity of showing what they could do this season. He did not think he had power to order any fixed advance payment to be made. He admitted that Tai Tapu was one of the most efficient companies in the Dominion, because it had an outstanding man at its head, but the Coast farmers had to take a much broader view than that. If they could build up on the Coast an organisation which could serve the whole of the farmers, it was in their interests and that of the district to do so. Was it goou business to spend their money in Canterbury. (Hear, hear? They had to take a long range view and create a factory capable of handling all the Coast production, paying for it a price comparable with that of other centres. The suppliers, wanted to look ahead, and if as Mr. Ryan had said, the company was using the big stick, he as Minister would take a very serious view of the matter. The DirectorGeneral would look into that aspect without hesitation. It was a big question which had received a lot of consideration, and he would assure

them that their representation would not just be forgotten about. He would go into the whole matter with the Executive Commission on his return to Wellington. He would have the benefit of first-hand information from the speakers, and would see if there were grounds for any alteration in the agreement. If there were injustices they would have to be closely investigated. He felt, however, that if the Golden Coast Co. was given the opportunity it would be able to pay a much more satisfactory price. . - Mr. Vallance asked the Minister whether the guaranteed price was that paid to the factory or to the farmer. The- Minister said that all charges made by the factory were embodied in the price, which last year was 15.88 d This efficiently handled by the factory should have returned the average of 161 d. The price took into consideration all facts, and the Government had been liberal to the extent of nearly Id. as far as some suppliers were concerned. The guarantee was to the factory, and if the factory was so inefficient that x the suppliers did not get a reasonable figure the Government would have to look into the matter.

In reply to Mr. Vallance, who pointed out that shipping was delayed, and that the Golden Coast Co. had to meet storage charges at Lyttelton, Mr. Lee Martin said that at Murchison he had been told how much better off the company was because it had received its money early. The Government had no control over shipping, which was handled by the imperial Government who told New Zealand when to send the boats so that they could meet the convoys arranged for them. The Minister of Marketing felt that it was fairly difficult to base the figure on any other than f.o.b. because there might be a big storage in New Zealand. He would look into the matter. Mr. A. Cockayne (Director-Gen-eral of Agriculture) promised to look into the requests of the deputation from every angle. One of the essential factors in these times was that the suppliers should send cream to their own efficient factories. There was no greater factor than the efficiency factor, and if there was anything wrong it was not in the principles of zoning. Regarding ragwort, the Minister said that the Grey County Council was supplying the necessary chemicals. There was an obligation on land owners to clear the centre of the road, as he had learned with experience. Mr. O’Brien had made representations on behalf of the County Council with the result that sodium chlorate was supplied for Crown and Native lands, and in cases of indigent farmers. He urged the farmers to look upon ragwort as a great menace, and to clear their properties with the utmost vigour. The Government had. spent £lOO,OOO in dealing with it because it was a national problem. Mr. Cockayne said that sodium chlorate was one of the most important chemicals used in the destruction of mankind as well as of ragwort, but they were assured of supplies from Canada this year, next year, and probably later on.

Mr. J'. H. Radford (Kotuku) requested on behalf of Kotuku residents the provision of a loading yard there, pointing out that they had to drive their cattle and sheep three miles to Moana. The cost would result in more revenue for the railways, and the farmers were very willi ig to pay the extra freight. The yard would also benefit the Kopara Valley settlers. The Minister said he would discuss the matter with Hon. P. C. Webb on returning to Wellington. The Minister also promised to discuss with the Industries and Commerce and Marketing Departments a request made by Mr. Hodgkinson that arrangements be made to back load barley from Australia to Greymouth for feed for pigs. The Minister agreed to a request that he discuss with the Minister of Railways, provision of a surfaceman’s cottage to incorporate a post office at Rotomanu.

At the conclusion, Messrs Hodgkinson and Ryan warmly thanked the Minister for the courteous hearing that he had given the deputation, and the Minister in reply stressed his pleasure at being able to discuss their problems with the farmers.