THE DAIRY CONTROL BILL.

Hawera & Normanby Star, Volume XLII, Issue XLII, 19 October 1922, Page 5

THE DAIRY CONTROL BILL.

—*♦ : SOME OBSERVATIONS ON CRITICISM. (By the Chairman of the Dairy Council.) It has been suggested that the committee may be hoping to' secure the Government financial backing. This we should have welcomed, but seeing difficulties in the way, we recognise that the industry, if gi^n control, can arrange its own finances in a manner tna-fc will be as advantageous to all factories, small or large, as the present system Tbis should be emphasised that the financial stability of the industry and its component parts will not be impaired to the remotest degree All connected with the industry recognise that much requires to be done regarding shipping, and that means must be found to prevent the alternate gluts and periods of scarcity on the London market, which are the result of (far lack of system. A representative of ; & prominent London firm has said: "If , you can give a steady and even supply similar to Denmark you can secure-an I even price with them." Yet over a period of six months during last season j the average difference between New j Zealand and Danish prices was 36s per I cwt., the greatest difference being registered on January 16, when it | amounted to 55s per cwt., or 6d jier lb, j this notwithstanding that all London I agents assert that New Zealand butter i is now equal, if not superior, to Danj ish. Oh this basis the New Zealand I dairy farmer should' have received fully . £1,000,000 more' for his produce last • year than he was paid, which amount, ■ had it been spread throughout tbe ! country, would have done much to miti- | gate the financial' troubles experienced during that time: None have yet questioned the need of a sound intelligence, department to collect information and' supply it to the factories. Assume this to be done without control. What is the result?. The information is obtained and is distributed to - factories that a certain market gives good promise. Immediately a rush sets i^. to supply it, with the result that it is overdone, and the promised good market becomes a bad one. Your information is thus stultified. The soundness of your intelligence department is then questioned by the unthinking and becomes discredited, not, be it noted, because its advice was unsound, but because" it had not the power to control the supply that the market sought. Thus it comes back unerringly that seeking an intelligence department without a control board is chasing a will o' the wisp, seeing that your information brings' into play forces that stultify your efforts, and must continue to do so: Consider also the questionl of advertising, the need of which, to open up new markets, is recognised by all. Widespread advertising may be only a waste of effort, and money. Systematic advertising involves a readiness to immediately supply requirements as a demand is created, which supply must be steady and continuous, and in-such-volume as the new market requires. Factories which have sought to develop business in Manchester and other new centres have discovered the difficulties by which they are beset. Much has been made by the opposition of the proposed levy. •Thds^if'inquired to secure the necessary. intsiiaation to direct our supplies into the most profitable channels, advertise and develop new markets, etc. The whole of -- the expenses of the board would be taken from this fund. It is probable that one-half of maximum levy suggested—one-eighth of a penny on butter and one-sixteenth on cheeseswould be ample. This would mean some £40,000 per annum. As the agents at this end are at the present time taking about £80,000 as their share of the 2i per cent, commission we^-have to pay on our sales, it will be seen there would be an immediate saving of some £40,000 per annum to the industry, with all the development and security work thrown in. AH the working expenses of. the control board would be taken from this fund. If those who are concentrating attention upon Clause 15 would; read it as it should, be read—"All moneys "received by the board in respect of the sale of daiEgr produce (or by. levy) or otherwise howsoever,'' etc. —they will see the need of the clause' to provide for the effective working of i the? Act. . The urgency for the passing, of the Bill lies in the fact that we now hold l a strong position on the' London market. We are now supplying-53 per cent, of its imported butter, as- against 20 per cent, in 1913. When; Siberia, Argentine, and other exporting countries get. again into their stride we shall be subjected to fierce:-competition, which may be disastrous to this country if speculators are in a position to play one country against the^ other for their private gain. We believe.- this to be a vital point, and no time should be lost. If the Bill were passed- this- week we should need to set to work immediately to prepare for next season's output if the work is to be done efficiently. Now is the time to get it established: if we miss it we may never be- able- to regain the same opportunity.. Tn an endeavour to confuse the issue many unpopular words- have Been used to stimulate opposition—viz., compulsion, coercion, arbitrai-y, etc.. whereasthere is no need and r no desire to go beyond the word used in the title, Dairy Produce "Control.'"'" The word "control" implies a power to direct; in the words of the Act, the-control "may, as the board determines, be absolute cr limited." The fuller power can only be exercised with the consent^ of the Government. We> have no- desire to act arbitrarily, but, as dairymen, we desire to place the industry upon a permanently better footing. It can be done, and the way we- suggest is the only possible way. We know that it conflicts with the interests of those who are. engaged in the trade at this end, and can therefore understand their organised opposition to it; but the issue cannot be restricted to the interests of a few. The whole Dominion, both town and country, is vitally interested in the general wellbeing of the daiiy industry, and to all such the general provisions of the Actshould commend themselves.