FOOD SUPPLIES

Otago Daily Times, Issue 23364, 2 December 1937, Page 12

FOOD SUPPLIES

CONTROL OF LOCAL MARKET FIXED PRICES AND CONDITIONS GOVERNMENT’S NEW SCHEME j SEPARATE ORGANISATION CREATED \ '(From Our Parliamentary Reporter) WELLINGTON, Dec. 1. Important proposals to control the marketing of foodstuffs within the Dominion are contained in the Primary Products Marketing Amendment Bill, wjiich was introduced by Gov-ernor-General’s Message in the House of Representatives to-night. • The Bill provides for the subdivision of the Primary Products Marketing Department into the Dairy Produce Export Division and the Internal Marketing Division Full powers are given for fixing the prices and the conditions of sale for dairy produce, fruit, honey, eggs and other foodstuffs specified from time to time by Order-in-Council. The Bill makes provision for the appointment of directors of the two separate divisions of the department and there is also power for the setting up of further divisions if they are required, each to be under the control of a director. .With respect to the existing organisation, Mr G A. Duncan is to hold office as director of the Dairy Export Division and Mr P. R. Picot as director of the Internal Marketing Division. Authority is given for the appointment of officers to deputise for the directors where necessary and for the delegation by the Minister of the powers which he holds under the principal Act. Necessary amendments are made with regard to the manner in which the functions of the department are to be exercised. Department’s Powers The most important part of the Bill gives the department power to fix the prices for dairy produce, fruit, honey, eggs, and any other foodstuffs prescribed by Order-m-Council. Prices may be fixed in respect of any defined district or locality, or for the whole of New Zealand, and they may refer to either wholesale or retail prices at -which any foodstuffs covered by the legislatmn may be bought or sold. In addition, margins may be fixed within which the foodstuffs concerned may be bought or sold and general conditions may be laid down to govern sales. Margins may be fixed as maximum prices and minimum prices, or by references to the amounts or percentage by which the selling prices may exceed the buying prices. There is a requirement that prices, margins or conditions of sals fixed by the department must be notified to the persons directly affected. Penalties Provided The principal Act imposes a penalty for the sale of dairy produce, except at the fixed prices. This provision, with its penalties ranging from £2OO in the case of an in-r dividual to £IOOO in the case of a company, or a corporation, is extended to cover the sales of other foodstuffs now to be brought under the legislation. The Bill states that in order to secure economic and orderly mar-, keting in New Zealand of any foodstuffs to which the legislation applies regulations may be made, if necessary, authorising the department to take at fixed prices any of the foodstuffs concerned and to export the quantity which is not required for local consumption. Regulations may also be madfe authorising the department to control the export of foodstuffs by any other person or authority. There is provision for the appointment of an advisory committee to assist the department in its operations. The Internal Marketing Division is to have a separate account at the Reserve Bank with the same overdraft provisions which apply in the case of the Dairy Industry Account. This borrowing authority for the Internal Marketing Division is made retrospective to September 20, 1937.

Separate Account

All moneys derived from the operations of the division are to be paid into the Internal Marketing Account and payments from the account a're authorised for the following pui poses:—

Acquisition of foodstuffs or other commodities.

Charges in respect of freight, insurance, storage or marketing.

Interest due to the Reserve Bank on any overdraft and administrative expenses.

Payments are to be authorised out of the Dairy Industry Account or the Internal Marketing Account for the purpose of equalising the returns from dairy produce or other commodities.

Provision for Adjustments

Authority is given for the Minister of Finance to make adjustments between the Dairy Industry Account and the Internal Marketing Account Arrangements with regard to payments to and from the Dairy Industry Account are to be the same as those laid down governing the Internal Marketing Account. There is special provision by which dairy produce acquired for export may be withheld from export if it is required for local consumption. If export prices have been fixed, however, those prices must apply. In the future it will not be necessary for a Gazette notice to be published concerning this taking over of dairy produce by the department prior to shipment. A new clause in the Bill provides that notice must be given in writing to the owner of dairy produce. Prices May be Varied The export or the local prices for dairy produce fixed for any one season or for any specified period may now be varied -*rom time to time by Order-in-Council. Any variation increasing the price to be paid for dairy produce may be made to operate retrospectively in respect to the prices to be paid by the department, but will not be retrospective with regard to the prices paid by any other person. No variation reducing the prce for dairy produce will apply in cases where higher prices have already been paid or where there is a definite prior obligation to pay a higher price. It is also provided that regulations may be made for the purpose of pre-

venting damage to or deterioration of any foodstuffs caused by improper packing or handling in the course of transit from the producer to the consumer.