Chairman of Dairy Board Puts the Case

Northland Age, Volume 6, Issue 30, 16 April 1937, Page 4

Chairman of Dairy Board Puts the Case

Some time ago, said Mr. Murdoch, chairman of the Dairy Board, an attempt was made voluntarily to cut out overlapping of cream cartage among dairy factories. This was not satisfactory, but with the Zoning Commission doing the work there has been very few kicks. Zoning will mean a big saving in cream collection costs in New Zealand. Referring to tile Kaikohe sitting of the Commission, Mr. Murdoch said that judgment had been given on the evidence presented ; there was no bias on the Commission’s part, allegations notwithstanding. The Kaitaia directors put up their case in a fair and businesslike manner and it was not rebutted by Oruru and was accepted by the Commission. This evidence showed that Kaitaia were making a payout of id to Hd a lb more than Oruru and as there was little prospect of Oruru largely increasing their output, the Commission recommended the amalgamation proposals. It had no power to zone a lai'ge body of suppliers from one factory to a lowerpayout factory. The Commission did not take into consideration the Mangonui wharf or the hospital or anything else that did not affect the position of butterfat supplies and payout. All other Northern factories had been dealt with satisfactorily, but it was considered that Oruru was not and could not be made an economic unit, except by sacrificing Kaitaia, hence the Commission’s proposals. Oruru have now stated that the difference in payout is only one-third of a penny and are asking the Commission to rehear the case with this and other new evidence that they state they can bring forward. It has been stated that small factories such as Kaikohe have been granted a zone. This~is so, but Kaikohe is the centre of a rapidly growing district and it has made satisfactory zoning conditions with the Bay of Islands. Its territory is compact and the factory is rapidly increasing its output. The Commission had considered that Kaikohe and Bay of Islands could be controlled by one company, but this was not satisfactory to those concerned. If Oruru and Kaitaia were zoned into one area, then a supplier in that area could supply which factory he desired. Mr. Murdoch Answers Questions Mr. Murdoch gave Mr. H. Parker a definite assurance that he, Mr. Parker, would not be zoned into Oruru ; Mr. Parker stated that if during the past ten years he had been supplying Oruru he would have lost £659 11/-. Replying to Mr. Lewis he said that the Commission had decided that Oruru could not be made an economic unit. If a comprehensive zone was declared, then if they saw fit the two company directorates could get together and agree on a zone. It is up to Oruru to show its worth or else Kaitaia will eventually take all its supply, said Mr. Murdoch in answer to a remark by Mr. Biid who said that a comprehensive zone i - eally

meant ‘open slather’ and with its larger payout Kaitaia could gradually take Oruru’s supply. It will rest on the final decision of * the Commission after hearing the report of the Oruru company’s decision, as to whether Kaitaia will be able to run a lorry into Oruru ; so after 31st May, Mr. Hoskin, chairman of the Oruru Company has stated, Justice Frazer has said that the Commission will either zone the present suppliers to Oruru or create a comprehensive zone. In reply to Mr. Marsh, Mr. Murdoch stated that he was prepared to >equest the Commission to appoint Mr. Duncan, an expert dairy accountant, tc go into the accounts of both companies aj - ! to give his decision on the different j ayouts of each company.