CONTROL OF PRODUCE.

New Zealand Herald, Volume LXIII, Issue 19502, 4 December 1926, Page 14

CONTROL OF PRODUCE.

BANK CHAIRMAN'S VIEW. DANGEROUS POSSIBILITIES. MEAT" AND DAIRY BOARDS. SUGGESTION OF AMALGAMATION. [BY lEEEOEAPH.—OWN COREESI'ONDENT. ] WELLINGTON, Friday. - Amalgamation of the Meat and Dairy Produce Control Boards was suggested by the chairman of the Bank of New Zealand, Sir George Elliot, in his address at the half-yearly meeting of shareholders to-day. He expressed the opinion that by appointing one board greater economy and efficiency would bo secured. Sir George Elliot prefaced his remarks on the subject with a brief review of the markets for the Dominion's exports. Referring to dairy products, he 6aid that without a doubt the industrial unrest in the United Kingdom accounts for tho decided fall in values. In the circumstances, the supply of butter and cheese has greatly exceeded tho, demand. . . . "An appreciable quantity of butter from a number of dairy factories was held up in the hope that the market would improve. This hopo has, unfortunately, not been realised., with. the result that deteriorating stocks are blocking the gangway of the new season's output just arriving in London. The holding up of a perishable article involves a serious risk, and the New Zealand producer cannot afford such gambling on the market. What a speculator may do in given circumstances does not affect the principle; in general, tho wisest course for a dairy company to pursue is to sell and keep on selling. v Bisk of Getting into " Deep Water." " Since the formation of the Dairy Control Board, there has been far too much talk of control, and this idea of control is hindering,, not helping, at tho present moment. Once upon a time in Egypt, many centuries ago, control was successful, but that control was connected with wheat—a rnUch less perishable article than butter or cheese, and, furthermore, circumstances were different. Control has been tried many times and in many, countries -since those far-off days but with very little success. "There is no doubt whatever.that the members of the Dairy Control Board are animated by the very highest motives, and are honestly trying to improve the conditions of the trade. There is no doubt, also, that the board was set up by Parliament at tho request of the Majority of dairy farmers themselves, but there is always a grave danger that the members «plected to the board may not possess the training or knowledge necessary for the running of s great, business undertaking, and before they ! realise that they do not know as much i as they ought to know, the affair they are managing may get into exceedingly deep water. Dangers el Gotag Too Far. " From the inception of the Dairy Control Board it was obvious that control if carried too far might become a menace .to the. greatest primary industry in the Dominion. " As the chief problems of the Meat Control Board arid the Dairy Control Board are identical, the merging of the two, into one would result, not only in a great reduction in expenditure, but aJso would make for greater efficiency, es* peqially if the number of the membors on the combined, board were reduced considerably,—say to a total of five, two representatives from each industry, with'a ''chairman appointed by the Government: I am certain that one small well-selected board could manage the business now carried on by the two hoards much more advantageously from every point of view." Sir George Elliot added that the termination of the coal strike in Britain would, he expected, be followed by great industrial activity there. It should also havo an immediate effect on tho values of the primary products of New Zealand.