DAIRY CONTROL BILL.

New Zealand Herald, Volume LIX, Issue 18225, 19 October 1922, Page 8

DAIRY CONTROL BILL.

CRITICISM BY OPPONENTS. REPLY BY DAIRY COUNCIL. BRITISH MERCHANTS* ATTITUDE. Matters relating to the Dairy Produce Control Bill are discussed at some length in a communication received from Mr. W. Grounds, chairman of the Dairy Council which, prqmoled the Bill. Replying to criticism by opponents of the Bill, Mr. Grounds states that evidently a very energetic campaign has been launched to create suspicion that the proposed legislation is a scheme for the disadvantage of dairy farmers instead of a carefully considered measure of reform for their obvious -benefit. AH connected with the industry, he states, recognise that much requires to be done regarding stopping, and that means must be found to prevent the alternate gluts end periods of scarcity on the London market, which are the result of our lack of system. A representative of & prominent London firm has said : "If you can give a steady and even supply sim Oar to Denmark you can secure an even price with them." Yet over a period of six months during last season the average difference between Now Zealand and Danish prices was 36s per cwt., the greatest difference being on January 16, when it amounted to 55s per •cwt., or 6d per "lb., notwithstanding that allLondon' agents assert that New Zealand buitter is now equal, if not superior to Danish. On this basis the New Zealand dairy farmer should have received fully CI OCO,OOO more for his produce last year than he was paid, which amount, had it been spread throughout the country, would have done much to mitigate the financial troubles experienced during that time. Oollection of Information. None has yet questioned the need of a sound intelligence department to collect Information and supply to the fadtories. Assume this to be done without control, what is the result! The information that a certain market gives good promise is obtained and is distributed to factories. Immediately • rush sets in to supply it, with tho result that it is "overdone and the pronmed good market becomes a bad one. Much has been made by the opposition of the proposed lory. This ia required to secure the necessary information to direct our supplies into the most profitable channels, advertise and develop new market*, • etc. All the expenses of the board would be taken from this fund. It is probable that on© half of the maximum levy suggested—one-eighth penny on butter, and one-sixteenth penny on crxHaso would be ampta This would mean some £40,000 per annDtm. As the agents at this end are at present taking about £80,000 as their share of the 84 per cent, commission, we have to pay on our sales, it will be seen then© would be an immediate saving of some £40,000 per annum to the industry with all the development and security work thrown in. All the working expenses of the Control Board would be taken from this fund. If those who are concentrating attention upon clause 15 would read it as it should be read, they will see the need of the clause to provide for the effective working of the Act. " Ho Time Shwild be Lost." The urgency for the passing of the Bill, adds Mr. Grounds, lies in the fact that we now hold a strong position on the London market. We are now supplying 53 per cent, of its imported butter *e against 20 per cent, in 1913. WTien Siberia, Argentina and other exporting countries get again into their stride, we ah all be subjected to fierce competition, which may fee disastrous to this country— if speculators are in a position to play one country against the other for their private gam. We believe this to be a vital point and no time should be .'o&t. In an endeavour to confuse the issue • many unpopular words have been u-sed to ; stimulate opposition.. The word "con- | trol" implies a power to diract. In, the words of the Act the control "may, [ as the board determines, be absolute or limited." The fuller power can cnly bo exercised with the consent of the Government. Wo have no desire to act arbitra- ; ily, but as dairymen,, we desire to place the industry upon a permanently better footing.- It can be done and the way we suggest vis the only possible* way. Effect of Pool in Britain. The manner in which the pool scheme is regarded in England is the subject of a statement by Mr. R. Vanstone, a direci tor of the Opotiki Dairy Association, ; who returned by the Niagara after spendi ing some months in England. Dp to the time he left England, on September 2, he spent most of-his time there investigating the "dairy produce markets and the methods adopted in dealing with New Zealand produce He expressed surprise at finding on his arrival m New Zealand that the proposal for a dairy produce pool, which, when he left England, was 1 supposed to have been shelved, had taken ■ definite shape, and was now embodied in a Bill under consideration by Parliament. Mr. Vanstone considered that New Zealand producers were blaming the wrong people for not getting the nest possible return for their produce, Tho Tooley Street merchants were doing the best they could under existing conditions, and would secure a better return to the pro- • ducers here if shipments from New Zeai land could be regulated in accordance with ' the demand in the British markets. Effect of Erratic Shipments. The weakness of New Zealand marketing i methods was in the erratic shipment of produce, the markets often being quite j bare, and flooded by the arrival simultaneously of a number of heavy I shipments. While Mr. Vanstone was in Britain the original pool proposals were brought forward here, and these were hotlv discussed and strongly resented by , all departments of the trade in .Britain. The retail trade, he says, is emphatically against what is regarded as a trust to kill competition, and many of .he large provision merchants expressed m no uncertain terms their intention of declining to handle any produce so controlled. Mr. Vanstone found that New Zealand butter was finding**new avenues throughout the North of England and Scotland, which.up till recently had been monopolised by Danish butter, and the trade in these now i centres promised to eclipse the London , market for our butter. Any interference at this Btage by a pool of New Zealand interests with Government backing would arouse strong resentment and give our trade in these new markets a setback from which it is doubtful it would ever recover. Mr. Vanstone strongly advocated that the Government should postpone putting this Bill until the conditions ; n Britain and the necessity for i any such action has been fully investigated by half-a-dozen fully qualified and impartial men, in which case he was convinced the- Bill would never be brought forward again, He expressed himself as strongly in favour of united action of all New Zealand interests in obtaining better and more regular shipping facilities without legalised interference in the marketing methods which any individual dairy factories might.see fit to adopt. Canadian importers interviewed by Mr. Vanstone also declared they would not tolerate dictation by a New Zealand pool, and would seek other sources of supply.