VEGETABLE CONTRACTS

Otago Daily Times, Issue 25385, 17 November 1943, Page 4

VEGETABLE CONTRACTS

Statement by the New Zealand Fruit and Produce Merchants’ and Auctioneers’ Federation.

In response to Dominion-wide Inquiries on the part of vegetable growers, the general public and the press, as to whether the New Zealand Fruit and Produce Merchants’ and Auctioneers’ Federation is participating in the Government scheme of Vegetable Contracts, the Federation has issued the following statement:—

In 1941, because of the shortage of vegetables, members of our Federation recommended that the Government give the growers a guaranteed minimum price to encourage production, and also provide the necessary man-power to replace the market gardeners who had gone into armed forces. In December, 1942, the Government called a conference in Wellington of representatives of the New Zealand Fruit and Produce Merchants’ and Auctioneers' Federation and the Dominion Council of Market Gardeners, Ltd., to discuss certain proposals with the object of (a) Increasing the supply of vegetables for armed forces and civilian requirements; (b) Keeping prices within the stabilisation scheme.

Agreement in principle was reached by all concerned —officials of the various departments, representatives of the Dominion Council of Market Gardeners and our federation)—to a guaranteed minimum price for the grower to encourage production with the public protected by a maximum retail price. Although those present were advised it was the Government’s intention to bring the scheme inio operation within a few weeks, several months went by during which representatives of the Council of Market Gardeners as well as our own federation were called from all parts of the country to several meetings in Wellington. Then, after an interval, the Government notified these representatives at another meeting held in Wellington, that a policy, that of the Government contracting with the growers, had been decided on as preferable to the minimum guarantee. Although the Dominion Council of Commercial .Gardeners and our federation opposed the new policy on the grounds that it was cumbersome and would present many difficulties, representatives of our federation notified the Government that they would co-operate with the Government and the commercial gardeners in whatever scheme was adopted. The Dominion Council of Market Gardeners held their annual conference in Wellington on July 22 and 23 last, and at that conference it was decided, while still preferring the guarantee system, to accept the Government contract sclume. The Minister of Marketing and also our federation were advised of this decision immediately and we intimated to the Minister that we would co-operate in obtaining the contracts and be responsible for the wholesale distribution.

The Minister of Agriculture and Marketing then made certain written proposals to our federation by which w® were to secure the supply and arrange for the wholesale distribution of basic vegetables. Under these proposals our federation was to undertake to secure contracts throughout the Dominion on behalf of the Government up to a total acreage to b® indicated by the Agriculture Department; The contract prices and conditions were to be nominated by the Internal Marketing Division, and. our members in the four main cenrtes were to form co-ordinat-ing committees charged with the responsibility of ensuring, as far as possible, an even flow of essential vegetables to the market, and to co-operate with the Internal Marketing Division. Prices of .vegetables were to be fixed at rates to be determined upon from time to time’-'by committees in the centres concerned in consultation with representatives of the Internal Marketing Division. This department had power to over-ride decisions of the committee. This point was at issue for some considerable.time; finally both parties agreed on the - principle, the Internal Marketing Divlsion -to give any such over-ruling instructions in writing. • ; Our federation members were. to be the agents for the Government' both in sceuring contracts and in the carrying out of distribution. Vegetables were ,to be graded and sold at prices determined'upon from time to time. The'auctioneers("Were to make weekly payments to the grower* (as is the present custom) and to render account sales to the Government through the Internal Marketing Division. The usual commission was to be paid the auctioneers by the Government for services rendered. ’ ~

Committees were to be formed in production districts to protect the interests of the Government and the growers with regard to early marketing or late marketing of crops, and with the object of reimbursing growers if >loss was incurred as a result of carrying out instructions. The retailers and the public were to be protected through Department. of Agriculture inspection of vegetables for grade, covering both quality and pack. The scheme was a most comprehensive one, and resulted in prolonged negotiations on the one hand between the market gardeners and the Government regarding contract prices and terms, and on the other with our federation concerning the principles involved as well as details in connection with methods of distribution.

Meeting after meeting took . place in Wellington, several contract forms being submitted to the growers and amended. It 1 was not until a week prior to the election that our federation received authority from the Government to proceed with contracting, although even at that late date negotiations had not been completed with the Dominion Council of Market Gardeners regarding the terms of the contract, nor had the Minister yet confirmed the various terms as discussed with our federation; in fact, he raised new issues. With the object of concluding the terms of the agreement and having the contracts signed by the growers by the date given for th- completion of same (October 15). our federation executive met in Wellington on September 29. The Dominion Council of Market Gardeners had also called a meeting for the same date at which representatives of both the Euroi pean and Chinese market gardeners' organisations were present. At their meeting the growers decided to approach the Government requesting that it revert to the original minimum and maximum scheme.. They made their representations to the Prime Minister. Our federation was not prepared to reopen the question and advised the growers that we would abide by whatever decision was made by the Government, as we were already committed by correspondence and negotiations with the Government to the contract system, although we told the gardeners that if the Government changed its policy we would gladly work under the minimum/maximum system.

We later learned that the representations made by the Dominion Council of Market Gardeners were referred by the Prime Minister to the Stabilisation Committee. On October 6 the Minister of Marketing (Mr Barclay) wrote to our federation stating that, in view of the growers’ attitude, it would not be practicable to proceed further with discussions and that the arrangements agreed upon were rescinded. Our federation was not fully Informed as to the Government’s intentions, and we were seriously perturbed when we learned that a decision had been arrived at whereby the internal marketing division was to contract direct with growers, thus casting aside all previous negotiations and comnletley ignoring the Dominion Council of Market Gardeners and our Federation; and this despite the fact that the Market Gardeners’ Federations (both' European and Chinese), throughout all negotiations, had indicated that they preferred to deal throush their regular wholesale commercial channels, whilst our federation had consistently co-operated with both the Government and the market gardeners and had gone to considerable expense in obtaining crop estimates from various districts from growers proposing to contract.

The meetings at Wellington had cost our federation a considerable sum of money in travelling and other expenses apart from loss of time of our members. Our federation considered it had been very badly treated, and a deputation was arranged to meet Mr W. Nash, who was acting as Prime Minister during the illness of Mr Fraser. At the interview a strong protest was lodged, and during the discussion it became obvious that the Deputy Prime Minister was not fully conversant with ihe position and had not been supplied with all the facts and correspondence relating to the matter. Full copies of the correspondence have since been furnished to him by our federation.

Our federation has been asked to express an opinion concerning the possible outcome of the present internal marketing divis'on scheme, but has intimated that it is not prepared to comment on the matter. It does consider, however, that the Government was ill-advised when it decided to jettison the comprehensive scheme of distribution which would have placed the responsibility of assuring plentiful supplies of vegetables, with adequate distribution throughout the Dominion, on to the shoulders of those most competent to discharge this very necessary and Important task.

[Published by Arrangement.!