MILK PRICES

Southland Times, Issue 22070, 18 July 1933, Page 8

MILK PRICES

AUCKLAND’S PROBLEM GOVERNMENT TAKES A HAND AGREEMENT REACHED (Per United Press Association.) Auckland, July 17. Declaring that the Government would not stand by and allow the small farmers around Auckland to face ruination, which the ruling prices for milk in the city would produce, the ActingMinister of Industries and Commerce, Hon. J. G. Cobbe, to-day appealed to the conference of interested parties to sink their differences and make a fair binding lasting agreement. He said the Government was greatly concerned by the Auckland milk problem, but it was not anxious to legislate, as the men in the business ought to be able to handle the concern themselves without Government intervention. None of the distributors or producers seemed to be making a fortune at present and it had been suggested that one concern was trying to obtain control of distribution. No government liked anything to become a monopolistic control of an industry, particularly one dealing with foodstuffs, nor did the Government stand for excessive prices being paid by consumers.

Mr Cobbe added: “Although the Government is not anxious to legislate, I would like this to be clearly understood. The Government is actively engaged in bringing about settlement on small holdings and therefore it cannot stand idly by and allow the small farmers who are already on the land to be ruined. It cannot do that. Moreover, it will not do it. The public would not stand for it and we would be kicked out, as we would deserve to be.” Mr Cobbe said he understood milk in Auckland was being taken from the farmers at 2Ad to 3d a gallon, whereas Wellington farmers were receiving 1/1 J. The present prices were absurd. After a long discussion the Minister proposed a private meeting with a committee representing all the interested parties. A little headway was made and then the discussions were resumed.

Many delegates expressed the view that legislation setting up a Milk Council with power to license producers and vendors and to fix the prices was the only solution of the problem. Mr Cobbe said that legislation would be a two-edged sword, as such council might eliminate many producers and vendors now operating. He proposed the conference should agree to fix the retail prices at fourpence per quart loose, and fourpence halfpenny bottled, and vendors should pay the producers not less than sixpence halfpenny per gallon net at the farm. Although this proposal met with a mixed reception, it was eventually agreed to, but one organization which is credited with being responsible for reducing retail prices to the present general level of threepence per quart loose and fourpence per quart bottled, dissented from the proposal. The Minister expressed his view after consulting representatives of that organization that they would come into line, but. these representatives made no such public statement. It was arranged that the new prices should operate from Saturday next. Mr Cobbe said that if pirating took place, he would consider taking action under the Board of Trade Act, but he would make no definite promise on that point.