END OF DRY SHAREHOLDERS IN DAIRY COYS.

Grey River Argus, 3 August 1949, Page 5

END OF DRY SHAREHOLDERS IN DAIRY COYS.

Bill Before Parliament P.A. WELLINGTON, August 2. The Co-operative Dairy Bill gave effect to the vital principles of ensuring that those who supplied dairy companies would control their affairs said Hon. A 11. Nordmeyer in the House of Representatives tonight when he moved the second reading of the Co-operative Dairy Companies’ Bill. The measure, he said, provided that “dry” shareholders, who merely dividends from their shares, would not, in future, have a voice in directing the policies of co-opera-tive dairy companies. Mr Nordmeyer sa d f he measure was welcomed by dairy company supppliers throughout the country, and was the outcome of extensive negotiations among interested parties. The Minister said he would move the second reading in the knowledge that the model particles were carefully prepared and scrutinised by the industry, by the committee and by the Dairy Board, all of whom were in full and complete' agreement with the provisions of the measure, and in the knowledge that the Bill was asked for by the dairy industry itself. Mr S. B. Corbett (Nat. Egmont) shid 262 dairy companies would bcaffbeted by the Bill, which, he said he hoped would restore to them the full measure of producer co-operat-ive control of this major industry. There had been in recent years, a dangerous trend away from co-op-erative producer control, and a commit tee’s recommendations to reverse that trend had been necessary. The Bill would enable dairy companies to r urge their registers of non-sup-pliei- shareholders. It appointed a tribunal to ensure that justice was done to those wohse shares were resumed, and it provided a set of model articles. Mr Corbett said that a provision in the BUI for the forfeiture of shares where shareholders could not be traced, would also be welcomed Hon. E. G. Cullen said the Bill was far-reaching, and broke contracts — for the betterment of the individual supplier and the industry as a whole. The tribunal had an important job to do tna the whole success of the tranfer from dry to wet shareholders would depend on it. Mr S. W. Smith (Nat. Hobson) said that many dry shareholders had invested money in th e dairy industry in t its early days, when they had had no assurance of the return on their money. They had helped to develop what was now an important part or the nation’s economy, and desered credit for the contribution. Mr Smith said, however, he was in full ageement with the Bill. Mr P. Kearins said that repercussions of the Bill would have very farreaching effects in future on cooperative enterprise, whether producer or consumer-controlled. He would like to see the Minister of Finance look into the question and have the Bill left open so that other companies could be embraced by its provisions The debate was interrupted by the adjournment, which was taken at 16.30 o’clock.