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New Zealand Herald, Volume LXXIII, Issue 22405, 29 April 1936, Page 15

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OWNERSHIP BY CROWN ■ I CREATING NEW DEPARTMENT POWERS AND FINANCE ; MARKETING OPERATIONS [BT TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Tuesday The preamble to the Primary Products Marketing Bill, introduced in the House of Representatives to-day, states that it i 6 considered essential in the public interest that producers of products should be protected as far *as possible from the effect of fluctuations in market prices. It is thought that the most effective and appropriate way of affording such protection so far as relates to primary products intended for export is to provide that the Government, on behalf of the Crown; shall acquire the ownership of such products at prices to be fixed and promulgated from time to I time. It is also thought that with regard to primary products intended for consumption in N,pw Zealand the Government should be empowered in its discretion either to acquire the ownership at fixed prices or to control sale and distribution. Limitation ol Scheme / The preamble continues that it is not feasible to put into operation immediately any plan cr plans to deal eifec•tiveiy with all classes of primary products, but it is considered desirable that in the meantime a plan should bp inaugurated in respect of dairy produce, • including certain other products usually associated with dairy farming. -V In order to enable the Government

-to put into operation its present plan for dairy produce and to formulate its plans for other primary products, itis intended to establish a Department of State, to be known as the Primary Products Marketing Department. The new department will be charged with ' the duty of marketing all primary products in which the Government has acquired ownership, or over which it has assumed control. It will also be charged with such general duties and functions at> may from time to time be ' imposed or conferred on it. The bill is divided into three sections, dealing respectively with administration, the marketing of dairy produce and the reconstruction of the New Zea- ' land Dairy Board. The Administration Side On the administrative side it is provided that a. member of the Executive Council may Iks appointed as Minister of Marketing and the Civil List is to be amended accordingly to provide for tho addition to the list of Ministerial offices. The bill establishes a department of State to be called the Primary Products Maiketing Department, under the control of the new Minister. A director ot marketing is to be the administrative head of the department, and there may also be appointed from time to time or more assistant directors of marketing and other necessary officers. There is also explicit power for the ' appointment of any member of the Executive Commission of Agriculture, other than the chairman, who is, of course, a Minister of the Crown, to be director or assistant director of marketing. The same provision applies to any officer of the New Zealand Dairy Board and generally it is stated that appointments to the department will be made from men .with technical or other expert knowledge of the dairy industry. I Functions of Department

The functions of the department are Outlined as follows: —Arranging for the acquisition 011 behalf of the Crown of any primary . products in accordance with the bill, or any other lawful authority subsequently granted, and arranging for the marketing in New Zealand or overseas of primary products, whether or not such products «ave been acquired on behalf of the -Crown. After the passing of the bill no contract for the carriage by sea of any primary products intended for export I® to be made, except b.v the Minister, or except in accordance with conditions approved by him. Exporters have to produce to customs officers sufficient evidence to show that the contract for shipment was made be•M? x^ 10 l )ass ' of the bill, or else Will have to produce Ministerial approval. It is provided that all the functions of the department may be exercised "J the Minister, although the latter ttay delegate to the director such of bis powers as he thinks fit.

The functions of the Executive Commission of Agriculture, as formulated in section 6 of the Agriculture (Emergency Powers) Act, 1934, are to be taken over by the new department aud the authority already given to the commission to take over the powers of various boards is also transferred to the department. .References to the commission in section 7 of the Agriculture (Emergency Powers) Act are to be read as references to the Minister of Marketing. There is definite authority for the ultimate abolition of the commission on a date to be fixed by Order-in-Coun-cil. A member of the commission, appointed to an office in the new department may hold both offices concurrently, but will receive a salary in respect of only one office, which will be determined by the Minister. While it remains in existence the commission will have all the powers of a commission of inquiry, but will be able to exercise them only with the concurrence of the Minister. It will also have powers expressly delegated to it by the Minister. The powers of a commission of inquiry may also be extended to the director of marketing, acting with an assistant director or any other person or persons appointed by the Minister. With the actual administrative department established under the terms of the bill reference is then made to the establishing at the Reserve Bank of a Dairy Industry Account, which will be administered in accordance with the provisions of the Public Revenues Act, 192(3, dealing with accounts outside the Public Account. The account is to be operated on only by cheque signed by the director or an assistant director and countersigned by the audit office. Authority loi Overdraft No limits imposed by any Act on the borrowing powers of the Government shall limit the authority conferred on the Reserve Bank to grant financial accommodation by way of overdraft in aid of the Dairy Industry Account, which may be overdrawn accordingly. All moneys derived from the sale of dairy produce by the department are to be paid into the account. From the account the Crown will make payments in respect of the price of any dairy produce, or far freight, insurance, storage or marketing. The salaries and allowances of officers and all other expenditure incurred in administration are also to be paid out of the account. Special provision is made for preliminary expenses incurred during the current financial year in connection with the setting up of the Department of Marketing. Annual reports and accounts of the department covering; the production year which ends on July 31 will have to be prepared within three months of the end of every production year and submitted to Parliament in accordance with the usual time stipulations.

The final clause dfialing with administration gives power for the making of regulations under the bill. Dairy Produce Defined The marketing section of the bill opens with a definition of dairy produce. This is to include milk and cream, butter, cheese and all other products of milk or cream, whether dorived by manufacturing processes or otherwise, and any other products of a kind derived from operations usually carried 011 in conjunction with dairy farming, such as the rearing of calves and pigs, whether such products are actually produced on dairy farms or elsewhere. The marketing previsions of tho Act are to apply to all butter and cheese manufactured from milk or cream delivered to a dairy factory on or after August 1 this year, and by notice in the Gazette this provision may be extended to any other kind of dairy produce. The Chatham Islands, however, are excluded from the operations of tho bill. Fooling and Shipment %

In connection with marketing, the Minister is empowered to make arrangements and give directions for the following matters: "Handling, pooling, transport find stofage of any dairy produce to which the marketing provisions apply. "Shipment of any such dairy produce intended for export on such tc;rms and 111 such quantities £us he thinks fit. "The insurance against loss of any such dairy produce. "All matters neceiisary for the exercise of any of the powers conferred 011 the Minister and his department." All dairy produce intended for export will become the property' of the Crown as soon as it is placed on any ship free 011 board, although the Minister by Gazette notice may take over the ownership prior 1;o the date of shipment. Successive clauses set out in detail the method of paying the guaranteed price. As soon as dairy produce becomes the property of the Crown the price will be paid forthwith out of the Dairy Industry Account to the company or other owners of the factory in which the produce was manufactured. Before the pay-out, the levy, if any, payable to the New Zealand Dairy Board may bo deducted.