DAIRY INDUSTRY

New Zealand Herald, Volume LXXI, Issue 21782, 23 April 1934, Page 10

DAIRY INDUSTRY

THE NEED FOR HELP

GOVERNMENT'S PROPOSALS " BELATED RECOGNITION " COMMENTS BY MR. GROUNDS [by telegraph—OWN correspondent] BROADWOOD, Saturday " The Prime Minister's statement at last indicates some advance the Government has now acknowledged responsibility," said Mr. Grounds, a member of the Dairy Produce Board, regarding the Government's plans to help the dairy industry. "For moro than a ycur," he continued, "wo have been urging that a national crisis was upon us,, that any suggestion of restriction of imports to Britain cut across the whole fabric of our economic life and would necessitate a complete review of New Zealand's settled national policy of the last 50 years. "Simultaneously we havo urged that it would seriously imperil our national solvency and consequently should bo contemplated only as a last resource when Britain was fully impressed with a sense of the inevitable conscqucncGS. Thco questions greatly transcend the responsibilities of an export control board, especially ono that has itself severely limited its operations in its recognised sphere. " The responsibility being now acknowledged, is a Iloyal Commission necessary to determine what should be done? I expressed to the Cabinet the opinion that there are men within the industry, with a full knowledge of the facts, whose inspiration would be the single desire to serve the country, who could report in a week what should be done if the Government would undertake to give effect to tho recommendations.

"Some of the vital needs for effective internal improvements have been discussed for years and recommended to the Government oftimes with the unanimous backing of the industry. There is now a belated recognition of the need of organisation in our export market. Some of us were pressing for this recognition 10 years ago." After referring to delay in action which would arise with a Royal Commission Mr. Grounds said that his view was that assistance was needed now, as many dairy farmers would be in serious straits this winter.

PERSONNEL OP COMMISSION CONSIDERATION BY CABINET [BY TELEGRAPH —PRESS ASSOCIATION*] WELLINGTON. Saturday The Cabinet to-day considered the setting up of the Royal Commission to inquire into the dairy industry and an announcement of the personnel is expected on Monday. The Prime Minister, Mr. Forbes, stated this afternoon he was not yet in a position to say anything.

APPROVAL OF INQUIRY FACTORY DIRECTOR'S VIEWS [from our own. correspondent] HAMILTON, Sunday Approval of the proposal to set up a Royal Commission to inquire into matters affecting the dairy industry is given by Mr. E. Runnerstrum, govern-ing-director of the Waikato .Valley Dairy Company, Limited, Frankton. Mr. Runnerstrum said there had been lack of unanimity among those engaged in the industry, and nothing but good could emanate from the commission.

Mr. Runnerstrum said he was opEosed to a direct subsidy to farmers, ut considered assistance could be given to them by revaluing all farm properties on an equitable basis and by providing and in order to prevent speculation in the future. He suggested that the Government should give a refund on freight which would provide the industry with a permanent advantage in the direction of building up new markets. Such a refund would be a sounder proposition than a direct payment to producers. The speaker considered that the manufacture of whey and second-grade butter should be stopped altogether. In this way exports could bo reduced by 3 per cent. The whey would not be wasted, because it could bo fed to pigs and calves.

" ONLY LOGICAL STEP "

OPINION IN CANTERBURY

[BY TEkEGEAPH —PRESS ASSOCIATION]

CHRISTCHURCH, Saturday

The general opinion of those interested in the dairy industry is favourable to the proposals outlined by tho Government. All agree that the Government has acted courageously in handling a situation of great difficulty.

"The Government's decision to take control of the dairy industry is a very important step in the commercial history of Now Zealand and to which wo have been gravitating since the Ottawa Conforonco," said Mr, W. Martin, general manager of the New Zealand Farmers' Co-operative Association. "It is known that the national unit of production has bccoino more important in tho eyes of the Government than the individual unit of production and owners' rights in it. I hope that the decision does not mean that a Government office will deal with individual butter contracts, shipments of butter and all tho detailed trading arrangements which can only bo carried out effectively by those people who have the trading experience aud the liberty to exercise it with that flexibility that the trado demands.".

Mr. C. P. Agar, managing director of tlio Tai Tapu Dairy Company, and a member of the Dairy Produce Board, expressed complete approval of the Government's decision.

A lack of unity in policy was reflected right through the industry up to the Dairy Board, which 011 the most important policy question was equally divided, said Mr. Agar. In its recent conferences with the Dairy Board, the Government had no alternative, with the board so divided on the main issues, but to realise the hopelessness of the position, and therefore it did the only logical thing to help the industry. Air. Agar expected to see confidence in the future somewhat restored by tho Government's action.