The New Zealand Times. FRIDAY, SEPTEMBER 25, 1925. DAIRY CONTROL

New Zealand Times, Volume LII, Issue 12252, 25 September 1925, Page 6

The New Zealand Times. FRIDAY, SEPTEMBER 25, 1925. DAIRY CONTROL

What is the possible effect of the new control under the new Act on the dairy export trade of New Zealand? That is the main question requiring answer in the interest of that trade. It was not answered at the passing of the new Act. It has not been answered yet. The new system is, nevertheless, about to take full grip of the trade.

At the passing of the new Act, we obtained and published competent legal opinions on the subject. These pointed out grave uncertainties in the working of the new Act. This expert conclusion, after careful consideration of the provisions of the Act and of all the interests and procedures affected, was very ably and conclusively presented. The presentation, and the discussion which followed in these columns and elsewhere, did not obtain any satisfactory answer from the Dairy Control Board. The board went on with its plans for establishing the new control of the dairy produce trade.

This change, affecting an export now amounting roundly to 20 millions sterling, and promising an increase at a probably much more rapid rate than the rate established in the past, is not only radical m character, but phenomenally great in effect. Under the circumstances, a brief review of the main points in the trade becomes necessary. ' , These are that the trade has been built by open competition between the London merchants; that these are in close touch with the producers, helping, them financially; that under the new control the merchants must seek the favour of the new controllers, who, unlike the producers with whom the merchants are now in touch, have no control at stake, and no interest comparable to the great dairy export trade; that the finance of the present system gives advances of go per cent, on the exports, which practically eliminates the disadvantage of casting - up on deficiencies; that this represents' a vast concession on the two-thirds advance of the ordinary system; that it is not known how the New Zealand banks will continue to support this new financial system (without the* guarantees they now have in London), on the supposition that the new control is superior to the old; that security is the primary, and, 6f course, necessary condition of the New Zealand banks; that under the old (present) system all interests concerned share in the control according to tneir capital risks; that the new Act gives absoluteVontrol to the Dairy Board irrespective of all considerations, which is a radical change; one that sweeps aside a control .worked out by actual experience, substantially a control which, from the legal, and only tenable, point of view, is of quite uncertain effect. Uncertainly, and 20 millions (increasing yearly) at stake! The conclusion to this tremendous array of fqcts is obvious - . The legal effect of the new control can only be determined by legal authority. The only authority extant is the Supreme Court. In the interest of the great growing dairy export trade of New Zealand, the Supreme Court must be asked for a declaratory judgment on the working of the new Dairy Control, Act.