DAIRY PROBLEMS

New Zealand Herald, Volume LXXI, Issue 21983, 14 December 1934, Page 15

DAIRY PROBLEMS

RECENT LEGISLATION

VIGOROUS DISCUSSION PRODUCERS' CONFERENCE ADDRESS BY MINISTER [by telegraph—own cobreeponuext] WELLINGTON, Thursday Vigorous argument marked the conference held in Wellington to-day between delegates from the nine wards constituting the electorate of the New Zealand Dairy Produce Board and tlie Minister of Agriculture, Hon C. I'j. Macmillan, who discussed problems of the industry and the policy of the Government. There was some plain speaking on botli sides and a difference of opinion amonji producers' representatives, but after a long discussion a motion was passed approving of the setting up of the executive commission and urging that the producers' representatives should be nominees of the Dairy Board and the Meat Producers' Board respectively. Mr. W. A. lorns, chairman of the Dairy Board, who presided, reviewed the growth of the dairy export industry in New Zealand and referred to the marked fall in prices. "Our cost of production," he said, "in New Zealand has probably fallen considerably between 1024 and 1934, and nowhere nearly sufficient to meet the tremendous fall in the value of our products. This fact and the perilous condition of the farmer compelled the Government to set up the recent Koval Commission to inquire into the dairy industry. Defence ol Recommendations "I was a inemb.er of that commission. The problem set us was an intricate one and in offering a solution we had to bear in mind not only the dairv industry, but the problem of New Zealand as a whole you may not agree with all the commission's recommendations, but 1 believe they are I sound and will make for the ultimate | good of the industry." ! Dealing with the part played by the I Dairy Board in the industry, Mr. lorns I said that the value of the butter and ! cheese shipped during the ten years ("ruled .Tune 30, 1934, as set down in the Customs returns was £168,8.52,124. "Of this huge sum the board has taken £•508,071 as export levies, or under onethird of 1 per cent. When it is considered that the industry pays its selling agents 2± per cent, the levy is not large for the services rendered." j Out of the levy the board had spent : on advertising in Great Britain approxiI matelv £166.000 and on dairy research i approximately £25,000. There was left ! a balance of accumulated funds of j £27,-500. The board had concentrated on j reduction of costs of transport to the I United Kingdom market, notably j freight, marine insurance and cold i storage. i Board's Marketing Regulations

"The board's marketing regulations have been in force for four months," said Mr. lorns, "and competent authorities have stated that they are working satisfactorily. It is quite possible that amendments may have to be made to them from time to time as it is seen how they work out. In nrinciple I believe they are sound and are a real factor in making for more orderly marketing." Mr. Macmillan said he would prefer to take a part in the discussions, as he had had a life-long association with the industrv. He agreed with Mr. lorns that there was a great deal of misunderstanding in Xew Zealand; but he would not say whether that was due to want of knowledge or through the deliberate efforts of interested people, j The Minister said he did not think there was much use in traversing very much of the provisions of the Agriculture (Emergency Powers) Act, which, he understood, the conference was to discuss. The provisions were now law and some of them might be approved of by the delegates. It was the intention of tlje Government to appoint an executive commission of agriculture, though some of the delegates did not approve of that course. However, • the Minister said he would ask the conference to devote its attention to the enabling provisions of the legislation. Large Powers Taken

One accusation brought against the Government, said Mr. Macmillan, was that it was taking very large powers. That was perfectly true as far as the enabling provisions of the Act were concerned. As representing the Government he would a lead as to what the conference thought should be done in the interests of the industry. The Government had been criticised over its action regarding farm dairying instruction. A provision for such instruction had been included in the original bill, but had been deleted because, the Minister said, he considered that the charge as proposed by the board, one-third of the cost to be borne by the Government and two-thirds by the industry, would place an additional load on the industry under the conditions prevailing at present. He would welcome an expression of opinion from the conference approving or disapproving of his action. Jt had to be remembered that farmers' produce was pooled, and the price was affected by the quality. It was accordingly essential that instruction should be given to men who were not perfect farmers, and Mr. Macmillan thought that the two-thirds of the cost could bo a charge fairly put on the Consolidated Fund. It was just as valuable to educate farmers as to give assistance to technical schools and colleges. Subsidy and Control

Dealing with local marketing, the Minister said the Cabinet had agreed that legislation should be brought down to give effect to the request of the industry. The Government had been awaiting the report of the Dairy Commission, and if the legislation which had been introduced had not been brought down, there would have been legislation amending the Act to enable the board or some committee to take control of the local market. The Minister said he wanted to assure the conference that any resolutions they brought to him would receive most careful consideration. He had seei; the remits bearing on the Agriculture (Emergency Powers) Act, and he could find nothing at ;\hich one could take offence. Everybody was satisfied that something ought to be done. Mr. Macniillan said he would certainly take exception to a suggestion that the industry should be given a direct subsidy, and at the same time that there should be 100 per cent control by the industry. He would say that such a- suggestion was childish. No Government could be expected to find £5,000,000 or £6,000.000 and not take control of the expenditure.