REFUSAL OF LICENCES.

New Zealand Herald, Volume LXIV, Issue 19792, 12 November 1927, Page 10

REFUSAL OF LICENCES.

DAIRY BOARD'S ACTION.

ATTITUDE OF GOVERNMENT.

"NOTHING TO DO WITH IT."

NO INSISTENCE ON AUDITS

•[BX telegraph.—special reporter.] WELLINGTON. Friday The action of the Dairy Produce Board m declining to grant export licences to factories which refuse to give particulars of the destination and price of the produce and authority for the board's auditors to inspect the books relating to the transactions was questioned in the House of Representatives to-day. It was stated by the Minister of Agriculture that only two out of 500 factories had refused to comply with tho conditions of the licence and that the board's requirements were welcomed by other factories. The Minister said that any information which the board thus gained would not be made available to others without the consent of the companies concerned. Mr. J. A. Nash (Palmerston) asked the Prime Minister if he bad noticed that the board had prohibited shipments now due to be made owing to the dairy companies refusing to comply with the demands of the board, which were that it had decided to insist on factories giving it, in writing full authority to inspect the books of the merchants in England with regard to the sales of the produce, luo companies had declined to accede to the demands of the board, and for that reason they were now being refused authority to export. The Prime Minister said that quite recently he had discussed the subject with representatives of the board. It was true that the Government had nothing to do with it, the board having the Act and the powe' to administer it, but he was sufficiently interested to see how far the board was prepared to go with what at first blush seemed to be drastic action. The board had the power to hare an audit made of the sales overseas but there was no doubt that it did not intend to rise tho power unless the companies asked for it. Mr. Nash: I have a telegram here about

The Prime Minister: That is a matter for the board. It has the powers and they can be taken from it only by legislation. The Government does not intend to introduce legislation. Those of us who have had conversation with the board believe that it does not intend to use its authority to have the audits made. The Minister of Agriculture, Hon. O. J. Hawken, said it would be recalled that prior to absolute control export licences were required, bat they were not necessary when full control was in force. Now that there was only partial control the licences were nemg insisted upon, and new conditions had been laid down by the board governing their issue. There were about 000 dairy companies in New Zealand f and the Minister understood that only two were refusing to comply with the conditions of the licences.

" The object of the regulations is to enable the staff of the board to know for the benefit of the factories what prices are received and the charges that are made at the other end," continued the Minister. " The information will be made avadable only with the* consent of the factories concerned."

Mr Nash: You are aware that many factories have signed the conditions under protest ?

" Yes, but they are very few," replied the Minister. " I know that one big company in South Taranaki, the Kaupokonui Company, has come in believing that it is a very good thing indeed, for it will enable it to check its sales, and the information will be of benefit to all in the dairy industry* I know many factories which are glad to have the information. It is" a check ali round, and gives them information which they would not otherwise obtain."