Manawatu Evening Standard. SATURDAY, OCT. 27, 1934. THE DAIRY INDUSTRY.

Manawatu Standard, Volume LIV, Issue 283, 27 October 1934, Page 6

Manawatu Evening Standard. SATURDAY, OCT. 27, 1934. THE DAIRY INDUSTRY.

The emergency legislation arising from tlie recommendations of tlie Royal Commission on tlie Dairy Industry is so far reaching that the most careful consideration of Parliament must be given to it. The Commission’s recommendations imply the virtual socialisation of the dairy fanner’s business, and the Agriculture (Emergency Powers) Rill follows these lines in many respects. The Commission, it will be recalled, favoured the establishment of a Rural Mortgage Corporation to issue bonds against existing mortgages with a State guarantee for the payment of interest; new powers for the Dairy Produce Board “to enable it to deal effectively, in the interests of producers and the State, with all the activities and problems of the dairying industry”, and the creation of a permanent executive Commission of Agriculture to advise the Government, and to co-ordinate and where necessary control the operations of the various Boards. The legislation as framed provides for the Commission of Agriculture to consist of three members whose appointment by Government decree will be for five years, and the decision of any two will be binding on the three. There is authority to transfer to it the statutory powers conferred upon the various Boards at present guiding the welfare of primary producers, and in other words this means that the Government, through the Commission, will, if the Bill becomes law, have the right to supreme control of the Dominion’s primary, production. The Commission of Agriculture is to be granted the widest powers in the making of regulations to deal effectively with the problems of a primary industry. With particular regard to dairying,_ regulations may be made specifically for ensuring the purity of the raw material, for its transport to factories and their licensing, for the marketing of dairy produce in New Zealand and elsewhere, for the imposition of levies and their application, and “for any other purposes for which regulations are contemplated or may be required to give effect to the Bill.” There 13 also authority under the Bill for money to be expended from the Public Works Fund to improve factories and their equipment and dairies, to eradicate disease in herds, and for other purposes deemed necessary. Another section provides for the reconstitution of the Dairy Produce Board, but not wholly as recommended by the Royal Commission. There are to be seven members, three appointed by the Government, one by the New Zealand Co-operative Dairy Company, and three elected by the remainder of dairy producers. It will have wider powers than the present Board.

Generally speaking, there should be no objection to the measures designed to improve the quality of New Zealand’s produce, nor to the development of wider markets. The Royal Commission noted that the “rapidly changing conditions of the past few years have indicated the need for a much wider range of markets than we have had in the past, particularly in view of the fact that the greater part of our national income is derived from a limited range of primary products.” If, therefore, the British market, which absorbs almost wholly our total exportable production, is to be restricted by quotas it is perfectly clear that fresh outlets—as many as possible —must be secured. Even u British market were to remain open, it 'vooM be a very wise plan to explore the possibilZ es for the sale of our produce in other countries. Not enoug 1

has been done in this way in the past, in spite of emphasis having been placed upon the folly of having all our eggs in one basket. Reconstitution of the Dairy Board has been urged at times, and it is for the dairy farmers’ leaders to say whether the new constitution satisfies them. It is the economic dictatorship of the industry, as exemplified in the Commission of Agriculture, that will require the most careful consideration. It quickly met with protests when the measure was introduced. This “super-board” will be above the Minister himself, as it was pointed out, and involves a system of political control, State Socialism of a very advanced nature. Both Mr Forbes and Mr Coates, have given an assurance that the Rill vyill not be hurried through the House. No one can be blind to the crisis in the industry, but the question may well be asked, Can the Bill bring what the farmer wants most of all—a rise in export values? That alone at the moment is the answer to his problem. Meanwhile, there can be no objection to taking every possible means to improve quality by education at the source of the raw material and by research. State control of the industry is another matter, and one that. requires the greatest consideration.