DAIRY CONTROL.

Hawera Star, Volume XLVI, 2 June 1927, Page 3

DAIRY CONTROL.

AIR. HINE AT NGAERE,

ADVOCATES FREE MARKETING

As a candidate for election to No. 4 Ward of the Dairy Produce Board, Mr. J. Hine addressed a meeting in the Town Hall, Ngaere, last evening. Mr. H. C. Taylor, chairman of directors of the Ngaere Dairy Company, presided over an attendance of fifty suppliers. In criticising the actions and policy of the Dairy Board, Mr. Hine said he was willing to concede that its intentions Avere good, but its judgment was bad, and the results of its activities have been positively disastrous. The assumption of absolute control at the outset of the board’s existence Avas a graA r e breach of trust and a A'iolation of the promises made to the Government, to Parliament, and to the producers, that these absolute and autocratic powers would only be exercised in a time of -grave national emergency. On the establishment of the board three members Avere despatched on a tour of inspection to America, the United Kingdom, and the Continent, and it required ,only a few short months for them to formulate a policy upsetting all precedents, and ruthlessly severing long-established connections and constituting the Dairy Board the sole medium of sale. It had been said that Mr. Grounds had returned to- New Zealand fully conscious of the necessity for great caution, but was overruled by his more impetuous colleague, Mr. Goodfellow, who desired to put into effect a national extension of the policy of storage and price-fixing, ivhich had been practised for some time by the large Waikato organisations. He fell into the fatal error of attributing his Avant- of success to the fact that he Avas not controlling the Avhole of the Dominion output ; if this -could be achieA'ed he considered success Avould be certain.

The board then embarked on its policy of absolute control, and Mr. J. B. Wright Avas appointed London manager at a high salary. Whatever his other qualifications, Mr. Wright Avas not quite the sort of man to be trusted AA'itli delicate negotiations with the produce trade at a time when a ncAA r and revolutionary scheme of marketing was being put into operation. The London office was also torn Avith dissension, tAA’o of its members being at variance, while Air. Paterson vainly endea\ r oured to restrain extreme action. The position was so acute that Mi'. Grounds hurriedly left for London with the idea of restoring harmony. He remained in London for some time, and continually assured producers that everything AA r as AA'orking if ardour albly, despite the fact that he must liaA r e acquired knoAA'ledge to the -contrary. Indeed, these assurances were maintained up to the time when adidce was receiA’ed from London that the industry * had lost millions of pounds and was on the verge of disaster. Subsequent events shoived that overwhelming disaster Avas averted only by the board’s surrender on the question of price fixation; yet Mr. .Corrigan claimed at Hawera that the board had “called the merchants’ bluff.” The bluff was called, sure enough—but by the “trade”; and the board, confessing it held no hand, collapsed. The speaker held that during the term in Avhich the board had exercised absolute control it had succeeded in antagonising the Dominion’s best customers, piled up huge stocks of perishable produce, and alloAved Argentina, Australia, -and Siberia to seize our markets, Avhile the Dominion dairyman helplessly Avatched his produce (which was second only to Danish) fall to the level of his lowest competitor.

PRICE FIXATION

Air Hine- said it may lx? nslced if there is anything economically wrong with price fixation, and lie- contended there is if it is done by a semi-poli-tical board, controlling the whole of a country’s output. It has been proA T ecl to the loss of Noaa" Zealand that it creates resentment and antagonism on the part o-f those to Avhom Ave Avish to sell. > If there is no price fixing and our goods go Home to be sold- on arrival at market rates, then the individual companies can, and have, transactedl their business much cheaper and better than the- board. For instance, the board finances on drafts payable 30 days after sight, whereas under the old -system the practice AA’as almost inv'ariably sights drafts, which cost 13s per cent less in exchange and' stamp duty than the method adopted by the board. The small advance and the much delaA-ed final settlement compares very' unfavourably AA'itli pre-con-trol methods. He claimed for himself and his hearers the- inherent right of eA'ery -British subject' to manage his oAvn affairs and the right, enjoyed by even coolie-s and -Kaffirs in other parts of our Empire, to dispose of the fruits of his labour as he- sees fit.

THE LEVY

Referring to the levy, Mr Hine said that up to- the end of July, 1926, the board lias drawn from the- dairymen of this Dominion the sum of £131,472 by way of levy, and if this year’s estimated levy \A r cre added producers Avill have paid- £186,472 for the privilege of all-OAving the board to act- for them.

It Avas admitted that the board must have funds, but he found on reference to the board’s balance-sheets that the excess of income over expenditure for the period ending July, 1925, Avas £16,681 3s, and for the year ending July.*, 1926, £28,577 Ss 6d. or, in other Avords, up to the- end of last July the board had received from the producers over £75,000 more than it required. He- considered that, in A’ieAv of adAer.se conditions this- year, the levy might very avcll have been remitted altogether.

RECONSTRUCTION DESIRED

Air Hine held that liot construction, but reconstruction, is required, and producers generally must > laboriously reconstruct the edifice AA'hicli has taken 40 years to build and been ruthlessly destroyed by the actions of the- hoard, it is necessary to_ regain the-confidence and goodwill of London; to do this the hoard should A'oluntnrily abandon its marketing p-OAvers, and Parliament should, at the first opportunity, take from fhe board those compulsory po\A;ers which should, never have been granted.

He- was- in faA'our of reconstructing the board as a Dairy Produce Board, giA’ing it power to collect a reasonable lcA r y, sufficient to enable it to function in rogardi to arranging shipping. Freights and insurance, hut he avus absolutely opposed to the continuance of its- marketing poAvers.

REPLIES TO QUESTIONS

AnsAA’cring questions,, Mr Hine said: The levy was not required; bis oavu idea- was * that the levy might in future be remitted. The board could A’ery capably functions on accumulations of funds.

There Is no necessity for a large board and employment of a costly and unwieldly staff. He considered that the board and expenses could be reduced at this end.

He was not in favour of any one particular journal being favoured with dairy industry matters to the exclusion of other newspapers. What the industry requires is a; produce board—not a control board. A produce board would be competent to arrange shipping matters. The chairman of the .Control Board did not hold office for an indefinite period. To the best of the speaker’s belief, the chairman was elected annually.

The Dairy Control Board has not the power to enter into a shipping contract without the consent and cooperation of the Meat Control Board. He favoured the existence of the board, but not a continuance of its policy of complete control.

Mr J. IT. Thomas' moved a motion : “That, seeing that Mr Hine has pledged himself to support free' marketing, this meeting favours his candidature in. the forthcoming election.” The motion was seconded by Mr T. Coleman and carried unanimously.

A vote of thanks to the chairman concluded the meeting.

MR. FORSYTH. AT AWATUNA

In continuation of Ills campaign in connection w jPh the election of membens of the Dairy Produce' Control Board, Mr. It. D. Forsyth addressed a tsmall attendance at Awatuna yesterday. Introducing Mr. Forsyth, the chairman, Mr. S. R. F'arquhar, said that the question of control was the .most important facing the dairy 'industry at the present time. Mr. Forsyth’s address followed (similar lines to' that given at Kaponga (previously (published). The speaker was given iaai attentive hearing and replied to a. number of questions. Asked) what percentage of the produce under, hhie board’s control had been disposed of up to the time of the elimination of praoe-fixing, Mr. Forsyth stated that only 40 per cent, had been is old when it was decided not. to continue the price-fixing policy, but by the time the new system had come into' operation there was very little held back. Originally, the speaker had not (supported the fixation of prices and had expressed Mis opinion that the measure was a wrong one, but the proposal had been adopted, as the majority o.f the board members' supported it. In reply to a question lais to' whether the board had .been aware that 1,090,000 boxes of the Dominion’s dairy produce had been: held by merchants in London at the time that the board; bad commenced to' function and whether it was considered a wise proceeding to fix prices l at that time, Mr. Forsyth stated that though no authentic figures were available, it was understood that about a million boxes were held in London by the various dairy factories, who were not aware as to the quantity held by other factories. It had seemed somewhat unwise for the board to commence operations at, that time and the board would have preferred to defer commencement until a more suitable period. Those who had been closely connected with the industry had anticipated a bad season, on account of the quantity of produce held in stock. Mr, 15. A. Collins asked what the board proposed to do in view of the amount of opposition to 1 the hoard on the part of the merchants, at Home, the traders and: the consumers, and the producers themselves were of divided views.

Mr. Forsyth said that the. board had no definite evidence of opposition from merchants or the consumers, but to. flic contrary, ;it was believed that a number were in favour of some, mild measure of control.

Replying: to av question sw* to whether the board could carry on successfully without price-fixing, Mr. Forsyth ox-prosis-edl the opinion that -the board could do frQ and etill continue the management of shipping, insurance and freights. Since the elimination of price-fixation it- was possible to cut down the staff of the Fond on ' office; but the speaker felt that it would hardly he possible to reduce the representation or number of members on the board.

In moving; a vote of appreciation to the speaker, the chairman remarked that from the address producers were able to gather a fair idea of the policy of the board. The motion was carried by acclamation. Returning thanks, Mr .Forsyth promised that if returned he would do his best in the interests of the industry.