DAIRY EXPORT

Hawera Star, Volume XLVII, 12 November 1927, Page 5

DAIRY EXPORT

LICENSE CONDITIONS.

(HOLD-UP OF PRODUCE. AN AUCKLAND COMPLAINT. (BY TELEGRAPH—SPECIAL TO "THE STAR.") WELLINGTON, Nov. 11. The bolding tip of dairy consignments in Auckland by tlie Dairy Export Control Board was tlie subject of an urgent question to the Prime Minister by Mr. J. A. Nash (Palmerston North), when the House met this afternoon. Tile Dairy Board, he said, was liolding up shipments owing to the factories refusing to comply with the demands of the board, which was insisting that the factories .should give it full authority to inspect sales books of merchants at Home. He added that many companies bad declined to accede' to the board’s demands, and be wished to know of tlie Prime Minister if something could be done. The Prime Minister stated that he recently had an opportunity of discussing the matter with representatives of the Dairy Control Board. As lie understood the position, the Government had nothing to do with it; the Dairy Board had its Act and administered it. However, he was .sufficiently interested to find out to what extent it was proceeding on what appeared, at the first blush, to be a drastic action. They were taking power, if necessary, to have an audit of sales overseas, and uo did not think there was any idea in the minds of the board’s members that they would enforce this unless the companies concerned asked for it. Mr. Nash: “Here is the wire.” Mr. Coates: “Y”es; I know the wire. The Government cannot interfere without altering the legislation, and we do not propose to alter it. It is not the intention of the board to enforce anything of the kind, hut they are taking this power if they consider that in the interests of the industry it is necessary.”

Sir Joseph Ward asked if it was intended; that one authority could override the decision of the owners of an article. Members: ‘ ‘No. ’ ’

The Minister of Agriculture <tlie Hon. O. J. Hawken), who was not in the House when the question . was raised, arrived during the Prime Minister’s explanation, and added to his remarks. Mr. Hawken pointed out that under the conditions of absolute control no licenses to export were required. When control ceased it was necessary to obtain export licenses. There were 500 factories, and he understood that only two stood out and refused to accept the conditions. The object of the regulations was that the staff of the board should know, for the benefit of the factories, the prices which each factory received and the charges made in London. This information would only be available with the consent of the factory concerned. Mr. Nash: “Some have signed under protest.” The Minister of Agriculture: “Yes. some, but only a few.” He knew of factories in South Taranaki which, did not come under control, hut they regarded the present export regulations as a very good thing indeed. It would give them information to check up their sales, and; would, lie Ivelieved, be very much to the benefit of the industry. This information could only be used with the consent of the factory concerned, so he saw no objection.

APPLICATION FOR LICENSE

COMPANIES LODGE PROTEST.

AUCKLAND. Nov. 10,

Three Auckland dairy companies the Hinuern. the East Tamaki, and Xmburv’s, have been notified through the Collector of Customs that consignments of produce intended for shipment on the steamer Port Darwin could not be put on board until applications for a license to export, as prescribed by the Dairy Produce Board, had been signed. Such applications involve the formal acceptance of the board’s conditions. These require the disclosure of the destination of the produce and the price, as well as an undertaking to submit for audit particulars of the sale overseas. Tt is to these conditions that the companies object. The board takes the stand that, until the signatures are forthcoming, the companies’ produce cannot he exported. This the boat'd enforces by withholding a license: to export. Protests against the hoard’s action have been telegraphed by the companies to the Prime Minister.

. DISCLOSURE OF PRICES. This board’s attitude is revealed by correspondence between it and two Auckland companies (states the ‘‘Auckland f! era hi.” t Last Tuesday the Taupiri Dairy Company forwarded to the board a formal acceptance of its conditions, except that it deleted three passages. Two of these required the communication to the hoard of the prices at which sales are made. “We are precluded by ordinary business, usage and commercial moraity,” the company wrote, “from disclosing to any third party the. price paid to us for our produce by a purchaser. This information is of a confidential nature, and disclosure bv us would be a breach of faith with our clients.” The third condition which the company declined to accept was that dealing with audit of the accounts of overseas agents. “We cannot claim, any eight or powee to -authorise' Flic board co inspect the books of merchants overseas who mir act as agents in the disposal of our produce,” the company wrote- “We have no doubt that such authorisation would be regarded by the merchants concerned a s presumption on our part, and would, wo fear, prove .utile. Neither can we presume to direct overseas merchants to deliver to the board account sales and statements of accounts, which documents are obviously confidential, as between a gem and prim-ipa l .”

UNCONDITIONAL ACCEPTANCE. The hoard’s reply to this communication was a threat to stop the company’s shipments. To avoid breaking contacts with its consignees, thei company was therefore forced to sign the memorandum of conditions without reservation.

.Similar correspondence has passed between the Hinuera Company and the hoard. The latter declined to accept a modification of the stipulated undertaking. “It must be signed untond';tionallv if the license is to be issued,” the societal-v of the hoard wrote on November 4. This was con finned in a telegram received by the company oil Tuesday. "No further shipments of vour uroduce can be made,” it stated, until you telegraph us you are .signing the application form for a license without an- deletions or alterations.’’ The Hinuera Company has written V° the Prime Minister and tlm Minis-

ter of Agriculture asking if the board’s restrictions are to be maintained. It is pointed 'out that the company declined to give an undertaking tcf disclose “the details of private business to members of the Dairy Board, who are engaged in private trading in competition with us.” OPENING NEW MARKETS. Discussing the objections to the 1 ward’s conditions, a representative of a leading firm of exporters at Auckland stated that fit had. through its own enterprise, secured a market in Eastern Canada, through Halifax, and had sold large shipments there. It had also sold to Western Canada through Vancouver. “By our opening of this market the New Zealand dairy industry has reaped considerable benefit,” lie remarked. “Not only have prices up to Is 5d a pound, f.o-b.. been realised, but also the diversion of some 2000 tons of butter lias relieved' the market of Great Britain and assisted in keeping up London prices. We object to the board’s demand that we should disclose the details of our market and prices. “Under the hoard’s contract of insurance with Lloyd’s shippers of dairy produce declare at the time of shipment whether produce i.s sold or sent on consignment. Premiums are payable in London by a person named in that behalf bv the shinpar, in the case of both sales and consignments. These are calculated, as far as sales are con.erned, on a valuation equal to 10 pel cent above cost, plus insurance, freight and exchange, and in the case of consignments at 5 per cent, a bow? the actual account sales. The (information the board desires to obtain direct beore the, goods are shinned in New Zea,am?d is, therefore, available in London through Llovd’s and the London office of the hoard. It can be transmitted to the hoard. Eventually the information would reach New* Zealand when the transactions are completed, and would then serve for the legitimate purposes of the board.” C A NADI AN SHIPMENTS.

The steamer Kia Ora. was to lift •10.000 boxes of butter at Auckland to: delivery to Eastern Canadian ports, and an effort was being made, by tin? exporters to secure a withdrawal of the board’s export license before the vessel aiVd on Sunday. All the butter to he sent from Auckland had been sold : orward in Canada at Is 5d per lb, as against !■« 4 ; {d in London.