DAIRY INDUSTRY

Otago Daily Times, Issue 22424, 20 November 1934, Page 7

DAIRY INDUSTRY

THE COMMISSION’S REPORT EXPLAINED BY CHAMBER OF COMMERCE A summary of the recommendations presented by the Dairy Commission was given by Mr A. C. Cameron to members of the council of the Dunedin Chamber of Commerce at its meeting last night. After dealing with various sections of the report, Mr Cameron expressed the opinion that the chamber should give it very serious consideration, and urged members to go into the position as soon as possible and before the House of Representatives met next February. Mr Cameron said the Dairy Coinmis* sion recommended, inter alia, the reconstitution of the Dairy Control Board; the setting up of an executive commission of three persons; the registration of all dairy farmers; the expen diture of £1,000.000 for the elimination of tuberculosis in dairy herds; the expenditure of £1.500,000 on dairy farms in the way of improvements to ensure clean milk, etc.; a provision of £500,000 for the reconstruction of dairy factories and of £25,000 for dairy research; the setting up of a Rural Mortgage Corporation for the readjustment of existing rural mortgages; the fixation of local prices for dairy produce: prevention of overlapping by zoning, etc. The report was an exceedingly valuable one, and most of those intimately connected with the industry would subscribe to 80 per cent, of the findings. Several of the recommendations, however, appeared to some of them to be dangerous, and he thought the chamber could with advantage give them careful-consideration. During the past week the Government endeavoured to put through legislation enabling it to set up the proposed executive commission of three, but owing to opposition from one end of the country to the other, the Government had to modify the commission’s powers. The' commission would now consist of four, the chairman to be a Cabinet Minister, and it would have power to co-ordinate the activities of the various produce boards, but no power to interfere with wool and other produce not at present handled by a control board, as was originally intended. It was expected that this, executive commission would in future be the negotiating authority when it came to negotiations in connection with quotas and restrictions The Government had also ratified the reconstruction of the Dairy Board. The South Island would in future have one member only, instead of four as at present. It was expected that the change over would take place in February. Owing to opposition, the proposal to register dairy farmers had been dropped. No legislation has yet been put forward in connection with the expenditure recommended. Many of those who were conversant with the finances of dairy farmers felt that the Government would be tackling the position at the wrong end if it authorised the expenditure of £1,500,000 for providing sterilising plant, etc., on dairy farms. This would automatically become a first charge on the property. The type of farm which would require the maximum amount of expenditure was the type of farm which was already mortgaged up to the hilt. If a dairy fanner was not at the present time supplying clean milk to his factory, the fact that he was given sterilising plant, etc., would not produce the desired result. The weakness at the present time would appear to rest with the fact that the factory managers could not, in the majority of cases, condemn the milk supplied to the factory. The offender was very often an influential supplier, or even a director, and it was as much as the manager’s job was worth to turn down milk. Some felt that if the factory manager’s job was safeguarded that the immediate result would be a vast improvement in the milk supplied to the factory, and that the improvement could be obtained without the expenditure of fIiSOO.OOO, much of which, the commission definitely stated, would be noil-recoverable. Something in the nature of a rural mortgage corporation was badly needed. Generally speaking, this was the only recommendation . made by the commission (other than the recommendation for the fixation of local prices) which could help the diary fanner immediately. In connection with this, it was expected that legislation would be brought up in Feb- ; ruary next. He commended the commission s report to, the consideration of every member of this council, particularly the part referring to the ability of the dairy farmer to pay existing interest rates. The report showed conclusively that the only hope for the dairy industry was the provision of cheap money, and if this was to be brought about there must be a general readjustment of existing mortgages. The suggestion was the setting up' of a Rural Mortgage Corporation with Government backing. He felt that this was a matter deserving very careful consideration, and one which the chamber should investigate. The suggestion appeared to him to be a sound one, provided the corporation was removed from Government interference, and was run on sound lines Similar organisations had been successfully run in other countries. “ Whether we like it or not,” Mr Cameron concluded, “we must admit that our farm finance has got into such an appalling state that it is decidedly in the interests of the whole community that an effort be made to straighten it out. A policy of laissez faire will get ns nowhere, and the suggestions of the commission in this respect would appear to provide a national clearing house through which the necessary adjustments can be made. Legislation in connection with this, and most of the other matters brought forward by the commission, will be placed before the House in February next, so that there is not too much time for our consideration of it.” The chairman said they were indebted to Mr Cameron for his clear and concise statement on the position. It was decided to refer the matter to the Primary Industries Committee