DAIRY CONTROL.

Hawera Star, Volume XLVI, 6 November 1926, Page 6

DAIRY CONTROL.

EEPLY TO ME TIMPANY. ACTING-CHAIRMAN’S STATEMENT MORE CABLEGRAMS QUOTED. (BY TJSLKGBAJPH PUSS'S ASSOCIATION.) WELLINGTON, Nov. 5. Mr J. R. Thacker, acting-chairman of the Dairy Produce Eyoort Control Board, has issued the following statement: “The action of Mr T. M. Timpany. one of the newly-elected members of the Dairv Board, in publishing certain i confidential communications (including one from the Prinrn Minister in London) regarding the T.ondon manager of the hoard and the inception of the hoard’s oolicy makes it necessary, on behalf of the Dairy Board and in fairness to Mr .T. B. "Wright, who is personally attacked in these cablegrams, to give other cablegrams and facts whl r 'h. although bearing on the oosition. were not givon bv Mr Timnany. “Tmnortant cablegrams omitted bv Mr Timnanv in his. published statement and countering those he did give were the following from Messrs Motion and Grounds. The cablegram from Mr Motion dated October 25 reads“A large and increasing business in the distribution of New Zealand hotter and cheese can he effectively done by direct shipment to West Coast ports and merchants having +be onuortnnitv of selling at London --uling prices. This can onlv he effectively done bv agreeing with the morphaets on the minimum prices. Otherwise these places may undersell London, and then the minimum price would set the value of the maximum. Without arranging a minimum price, on a slack market the weakest holders would set the market value. T strongly support minimum price fixing with merchants, this being essential if we are going to have effectual marketing, and bv this svstem tbe board will soon know the merchants that have the best distribution and the most effective outlet for our produce. T stronglv support Mr Wright’s ability and integritv. and stronglv oppose- propaganda against Mr Wright and control . ’ ’ The cablegram from _Mr Grounds, dated October 25. is as follows: “I reiterate the urgency of the recommendation in the former cable. _ The , suggestion to change the manager is. in my opinion, disastrous. T entirely disagree with the suggestion that he can he readily replaced bv a better man. The opposition has been strengthened by the thought that hoard changes have weakened its attitude to control. Control by minimum price fixing is the only sound method. The intrigue and propaganda here are designed to_ undermine control. I can re-establish the hoard’s prestige if I have your confidence and yon adopt mv recommendations ; otherwise I see little hope- for the future.” The earlier recommendation made by Mr Grounds was that Mr lorns should be recalled and Mr Claud Motion he made chairman of the London leaving other reconstruction in the meantime. The foregoing cablegrams from Messrs Motion and Grounds, together with other events, showed clearly to the board that definite organised propaganda was on foot, seeking to discredit Mr J. B. Wright as the hoard’s -business manager. “The publication of Mr lorns’s association with the attempt to displace Mr Wright makes it necessary to state the past attitude adopted by him towards Mr Wright. This is done with reluctance, but as a matter of justice to Mr .T. B. Wright. It is admitted bv Mv lorns himself that he left New Zealand predetermined against Mr Wright because of his association with the Nevv Zealand Co-operative Dairy Company, Ltd.

“In finally recommending Mr Wright cut of 267 applicants, Messrs- Motion and lorns, in a joint letter stated: ‘We have come to the absolute opinion that there is only one applicant who has had at present the necessary experience for the position, and that is Mr J. B. W r right, and we have no hesitation in recommending his appointment to the board. Mr Wright is easily the outstanding man, being most qualified to fill the position. He is not connected in any way with any business which is interested in the trade, and therefore is quite impartial.’ “In addition to this joint recommendation. Mr Torus, in view of his known attitude towards Mr J. B. Wright, felt it incumbent to write to the board personally as follows: ‘I did all possible to trace what reasons the men in New Zealand had had for strongly opposing Mr Wright, and I have been greatly perplexed and astounded in some of the interviews we have had with some of the largest importers in the trade here (men not handling the New Zealand Co-operative Dairy Company’s produce), who have said : “I suppose Mr Wright will surely get the job, and I hope- he does, as he is the right man for it.’ ” “So the matter resolved itself into a straight course for us to pursue, and that was to recommend the man we have, as I conscientiously believe he is the most proficient man applying and will be loyal to the board. Tt- was impossible for me to find anv concrete evidence, after confidential interviews with some of the largest men in the trade here, that he was not qualified to carrv the iob through. “The only conclusion I came- to is that, as was stated bv some men. the opposition to him was only trade jealousv. “Tn line with the i-eeommendations of Messrs Motion and Torns. M© J. B "Wright was duly apnojnted the beard’*' manager in December last. and arrangements made for him to take up his position on Mar 1.”

OPINION OF FREE MARKETING

hr, AG UE

r . . WELLINGTON, Nov. 5. . Ik© following statement on the sub ject ol dairy control has been issue© by the f ree Marketing l.eague of New Zealand:

“The Prime Minister, in his cablegram oi October 27 to the Dairy Control Board, states that tne control policy is definitely settled nnd will contmiie. If this means that the measure of control exercised by the Dairy Board will be similar to that exercised by the Australian Dairy Control Board and the New Zealand Meat Board, Mr. Coates’ announcement will be received with satisfaction by producers, exporters, and the general public, whose interests depend upon retaining the goodwill and co-operation of British merchants, distributors and consumers. “The maintenance of a high standard of quality, arrangement of freights and insurance, effective advertising, regulation of shipments, supply of reliable information, advice regarding finance, and general supervision are all regarded as within the province of the board. But the New Zealand producers, exporters, and public alike deprecate strongly any compulsion that

ignores the common rights of ownership, and any price fixing likely to estrange the cordial goodwill and hearty co-operation of individuals and firms that have served the industry in the past.”

A LABOUR STATEMENT. The Labour Party has issued a statement, over two columns in length, in which it criticises Mr Coates’s action in interfering in the Dairy Produce Board’s domestic discussions. “The Dairy Produce Export Control Act of 15)23 was supported by the Labour Party,” says the statement, “because it promised to transfer the control of butter and cheese from the speculator to the producer. With the exception of opposition to the departure from the democratic principle in the method of electing members of the hoard, the Labour Party has consistently upheld the Control Board in all their decisions which would assist them to control produce for the benefit of the dairy farmers. The board’s policy was doubly beneficial in that, to the extent to which it cut out speculation, it advantaged the consumers in Britain as well as the producers in New Zealand, but the latest decision of the hoard contains elements of danger to producers and consumers, and the position calls for a restatement of the hoard’s policy so that the Labour Party and the public may know exactly where they stand. The- hoard has now agreed to allow the importers to elect a committee of three, and that this committee, in conference with the Dairy Board’s representatives in London, will determine the selling ©rices of butter and cheese- from time to time. Does this mean that unless prices are in accord with their London wishes Tooley Street will not function ? Or does it mean that the London. manager has been regulating the price at so high a level that Tooley Street merchants could not sell, and they have used their powers to bring the hoard to heel ? The action of the Prime Minister in the mater appears.to have been overbearing and autocratic. The chairman of the hoard ("Mr Grounds) is in London. Why did Mr Coates overlook him P Should not the Control Board work through its own chairman rather than through the Prime Minister, who cannot possibly he fully informed of the situation P The action of the Prime Minister has seriously jeopardised the hoard’s position in London. and may react detrimentally to the hoard in New Zealand. The dairy industry in New Zealand is in a very doubtful nosition. Prices will probably go still lower than those at present ruling. Prices for land are such that everv nenny reduction in the price of butter takes many farmers nearer, the road to bankruptcy. Some of the critics and some of the enemies- of the Dairy Control Board are using the present slump in butter and cheese prices in London to discredit the policy and activities of the hoard, but a little reflection will show that the board is in no way responsible for the slump, which is due partially to reduced purchasing power owing to the industrial trouble in Great Britain and chiefly to the operations of speculators who held up supplies prior to the introduction of absolute control.” The statement says that, outside complete control by the State., the Labour Party believes the constitution of the Dairy Board to be in the best interests of the people of the Dominion, and proceeds : “The large scale marketing svstem which is coming into operation in all countries renders it imperative that the countrv shall be the unit in the marketing of primary produce, instead of the individual, as in the past. One method suggested whereby demand and prices could he stabilised and a definite market retained is by the establishment in Great Britain of a food importing board. This board would contract with the Dominions to supply wheat, meat, butter, cheese, etc. These contracts could have a currency of from three to five years. The organisation of such a hoard 1 and the placing of contracts would need much care, but it is urgently necessary, in that the time is coming when steps will have' to he taken to secure the food supplies of the Old Country. If the Food Imoorting Board in Britain contracted with the New Zealand Dairy Control Board to take the Dominion output up to a named quantity for a period of, say, five years, it could not be other than beneficial to both countries. “The decision of the board to allocate £20,000 for the advertising of New Zealand dairy produce, if wisely spent, cannot bring anything hut- good,”, the statement adds. “This -would have a peculiar advantage in that it would benefit both producer and consumer, which.is more than cnu lie said for th© majority of advertising campaigns.” After stating that a lot of humbug is talked about price fixing, and claiming that representatives of the organised producers have the right to quote from day to day a price for the commodity they have for sale, instead of this process being carried out by Tooley Street speculators, the statement concludes: “If the hoard is courageous and confident enough to carry through its published policy (a. policv which has not yet been effectively challenged), it can render splendid service to the struggling dairy farmers, whose margin between factory cheques and mortagage interest is very small: but, if it- vacillates' between one policy and another, if it allows its policy to be determined by the proprietary companies, if it accepts the interference of a Prime Minister whose little knowledge of finance and marketing is so dangerous, then it has lost its vision and. like all things of this type, will perish, unless the vacillating members get out of th© v oad. But. if tbe board refuses to allow speculators to dictate its policy or to. be influenced by an ill-informed Minister, then it can go ahead with eo’-fidonee. Tf the nresent distributors will not act, let the board go a step further and provide for distribution them-se.b-es : and. if the present Government will not help them, then the remedv is in the hands of tbe farmer. Retrea + bv. the board at the nresent stage will bring unqualified disaster to the dairr farmers of the Dominion, who can onhhe served' bv insisting on the board onrrvino-. out its published nolicy and instructing the board members for their district to act acoordinndv.”