POLICY REASONS.

Manawatu Standard, Volume LIV, Issue 281, 26 October 1934, Page 6

POLICY REASONS.

BEHIND DAIRY LEGISLATION. QUEST FOR MARKETS. (By Telegraph.—Special to Standard.) WELLINGTON, Oct. 25. Policy reasons prompting the creation of a new supreme governing body of export producing industries —The Executive Commission of Agriculture — were explained to the House of Representatives by the Minister of Agriculture (Hon. C. E. Macmillan) tonight. 'the proposal might be new to members, he remarked, but it had long been felt that there should be somebody vested with larger powers than the Dairy, Meat or Fruit Control Boards. Someone had to make reciprocal trade agreements or open negotiations with other countries, and it was impossible for Ministers of the Crown to leave New Zealand frequently for the purpose. It was equally impossible for private individuals to make new business openings outside the Empire. As soon as anything was done which let a little amount of extra business into some foreign country it seemed to upset the trade, with the result that the Government of that country immediately imposed restrictions. Consequently, trade expansion, to be successful, must be done by some authority higher than a private trader by way of treaty or negotiation between governments. There was no provision in the law until this suggested commission could operate, because none of the existing control boards could raise sufficient by levy to enable them to go out to exploit fresh markets. If any dairy company thought there was a chance of doing trade with any foreign country it could not take the risk of a return lower than the London parity. There was no provision under which the control bodies could distribute the loss amongst the whole industry. The Bill provided that if it was recommended bv the Executive Commission any such charge could fall on the Consolidated Fund.

There was the experience last year when an arrangement was made to introduce our apples into America, but great difficulty arose and a complete embargo was imposed. Not a single case of apples could be sent because the Fruit Board had no power to get over the difficulty. Then the Minister of Industries and Commerce made contact with Belgium, because there was a prospect of selling 100,000 cases of apples, but owing to difficulties which existed no individual grower could take the risk and the board was unable to do so. Mr A. M. Samuel: Is this going to help the butter industry? The Minister: Yes. You profess to know all about it and you talk about the dairy farmer getting world parity. He did when it was represented by London prices, but if he could obtain the price paid on the Continent we would not be talking about helping the farmer because butter is selling in France at Bs 6d a pound, and in Germany 2s 6d, and large quantities are being consumed. The time is long past for having some organisation. Mr Samuel: Have you tried that already ? The Minister: There has been no power.