Meeting Dairy Problems

Manawatu Times, Volume 59, Issue 273, 21 November 1934, Page 7

Meeting Dairy Problems

Purpose of Emergency

Powers Act

SITUATION THRUST UPON DOMINION

Per Press Association. WELLINGTON, Last Night

“In the Act the Government has conceived a clear and progressive plan of action, based on a careful' sifting of the situation by one of tho most thorough commissions that has ever attempted to sift out a confused agricultural problem;” stated the Prime Minister (Rt. Hon. G. W. Forbes) in an interview to-night commenting on the recent legislation embodied in the Agriculture (Emergency Powers) Act. “It was urgent and fundamental that the organisation of the dairy and other sections of the farming industry should be strengthened as indicated in the Act, so that we may co-operate to tackle immediate problems. I will admit that the Bill means interference. The farmer dislikes interference, although 90 per cent, of British farmers voted in favour of the pig marketing and milk marketing schemes. I dislike interference, but unpalatable though it may be, the most unpalatable thing of all is to find that markets will not buy our produce at payable prices. I do not want interference, but the first tiling is to get a living for our farmers. It is more important that our agricultural industries should thrive than that we should provide extensive employment schemes of a palliative nature.” Mr. Forbes said that, in view of the agricultural marketing legislation in Great Britain, the New Zealand Government had been brought directly into the marketing question. Active negotiations were at present in progress in London with regard to regulation and conditions of marketing of meat in Great Britain, while in August, 1935, the Ottawa arrangements regarding dairy produce would terminate. Moreover, there was a possibility of the principle of “regulation” being applied to fruit. Even now there were certain tacit agreements.

The Agriculture (Emergency Powers) Act, just passed, was designed to enable New Zealand to deal with the consequences of the British Agricultural Marketing Act. It provided for a coordinating Commission of Agriculture, designed to give that co-ordination which was not only desirable from our point of view but which the 'British Act had forced upon the Dominion. It also gave the New Zealand Dairy Board the necessary powers to meet the situation resulting from the British Marketing Act. More Unity in Marketing.

Mr. Forbes observed that the Royal Commission had been emphatic that some organisation was necessary to effect more unity in the marketing of farm produce. Without such co-ordina-tion, maladjustments and hardships were very likely to occur.

“The Government does not want through the commission to become too involved in the industry, but I would emphasise that the situation is thrust upon us by the action of the countries in which we market our produce.” Except under special circumstances and after full consultation between the boards, the commission and the Government, details of production and marketing were left to the produce boards themselves and these boards would continue to function as in the past, but with the added marketing knowledge gathered by the commission and trade commissioners to be appointed to work in with the boards and the commission. The aim was that the Government’s action should be guided in the way most helpful to the industry. With regard to the reorganisation of the New Zealand Dairy Board, the only real alteration from the recommendations of the Dairy Commission was that the four Government nominees recommended had been reduced to three. The Dairy Commission had laid down the typo of persons to be chosen as Government nominees and this general recommendation would be adhered to. The Government nominees would not be instructed in the manner in which they should vote or act, but having been chosen in the manner recommended by the commission, they would be left to exercise their best judgment on ail questions at issue. This was in conformity with the position of the Government nominees in the past. “There is no intention of taking trade from those at present handling it, but rather to create conditions under which the trade may meet freely the situation which has arisen in overseas markets. Nearly all consuming countries have adopted the principle of regulated markets and we cannot avoid the necessity of organisation to meet the new conditions, while preserving or adding to the initiative in finding markets for existing or new types of produce. ’ ’

Rates of Interest FIXED LEVELS NOT FAVOURED Per Press Association. MASTERTON, Nov. 19. Devoting several hours to-day to a discussion of the report of the Dairy Industry Commission, the Wairarapa provincial executive of the Farmers’ Union spent the greater part of that time in an exchange of ideas on the subject of interest rates. The opinions expressed were somewhat varied, but there was fairly general agreement that interest rates were likely to fall to a low level and must do so in order that the industry’s burden of costs might be supportable, A humber of members contended that the first-class mortgage rate of 3$ per cent, suggested by the Dairy Commission was too high. The opinion was freely expressed that better terms would be obtainable by allowing the interest rate to find its level than by attempting to fix the rates. It was agreed ultimately to urge on the Government- the need of a further reduction in interest rates in keeping