GAIN AND LOSS TO DAIRY INDUSTRY

Northern Advocate, 9 December 1936, Page 3

GAIN AND LOSS TO DAIRY INDUSTRY

RATIONALISATION introduction

Speaking partially of the rationalisation of the dairy industry already brought about by the Government, Mr J. G. Barclay, M.P., claimed at the meeting of the Whangarei Sub-Pro-vincial Branch of the Farmers’ Union yesterday that the half per cent reduction in commission had resulted in the saving of £90,000 to the industry this year. The Tooley Street merchants had been quite satisfied —in fact they had benefited— by the commission of 2 per cent, instead of 2h per cent, as they no longer had to maintain costly buying staffs in New-Zealand.

On, the other hand, said Mr Barclay, the dairy industry had been taxed to the extent of about £IOO,OOO in the higher cost of butter boxes, brought about by increased costs in the bushes and sawmills. y Mr ri. O. Mellsopp (provincial , pres!dehjfc) ;\One step forward and another oiie Tback for the industry. ' Useftil Seryice. Mr Barclay: The men in the mills and box companies are giving useful service, arid are receiving shorter hours and better pay. Rationalisation has eliminated the butter buyers, who were performing no useful service, simply touring round the country in their limousines entertaining directors and canvassing for supply. I was a

director, and I know. Mr A. E, Robinson: The dairy companies are telling a different tale. Mr Barclay: The true poistion has been withheld from them. Mr Mellsopp: Under the guaranteed price the saving made in commission will not be passed on to the farmer. Mr Barclay: It will be if there is any surplus in the dairy account this year. Voices: Oh! Oh! Mr Barclay: But that is a trade secret. Continuing, Mr Barclay drew attention to a statement made in an Auckland paper that the guaranteed - price was equivalent to £lO6 6/ London parity. This was incorrect; the actual parity being £lO9 3/. On the old basis of 2J per cent, the commission which would have been paid to {butter merchants would have represented £500,000, but today, the dairy companies were selling f.o.b. free of commission.