MILK COUNCIL

Southland Times, Issue 22731, 6 November 1935, Page 7

MILK COUNCIL

FORMATION ADVOCATED COMMITTEE’S REPORT TO COUNCIL SPECIAL MEETING TO BE HELD The recommendation that in the interests of both distributors and consumers a milk council should be set up in Invercargill was contained in a report of the sub-committee from the City Council set up to investigate the proposal to establish a milk council on similar lines to that operating in Auckland. The committee, which consisted of Councillors J. H. Tattersfield (chairman), A. J. Service and W. G. Tait, presented its report to the council last evening. The report stated:— The committee held meetings on September 11 and October 21 and has conferred with Messrs E. M. Russell, S. J. Coaley, W. J. Caldwell and R. Cochrane, representing the City Retailers’ Association and City Wholesale Milk Producers’ Association. The city inspector was also in attendance. Councillor Tattersfield was chosen as chairman and a useful and exhaustive discussion took place and there came under review: (a) The Auckland Metropolitan Milk Act, 1933; and (b) the regulations made under that Act. We have had the benefit of the concise and well considered report submitted by Mr Bleakley, city inspector, by the direction of the City Council. The views of the retailers and wholesale producers is fairly set out in the letter submitted at the council meeting on August 13 last supplemented by the remarks of members of the deputation that waited on the council that evening, but the committee took the view that its special concern was to examine the position from the standpoint of the consumer, i.e., our ratepayers as a whole. From Mr Bleakley’s report it is clear: (1) That there ’has been a milk shortage in the city this winter; (2) milk has been obtained from anywhere and everywhere and considerable quantities sold of very doubtful quality; and (3) particularly this winter, and more or less continuously in the past, many ! people in the city have been consuming 1 milk which did not grade up as a reasonably good article. In Auckland’s Act it is prescribed that the maximum levy to provide funds for the functioning of the Milk Council is one farthing a gallon, but it must be remembered that the population of the area covered by the Act will exceed 200,000 whereas in Invercargill there are only about 22,000 persons to be supplied.

Committee’s Proposals. After careful consideration the committee submits:—

(1) That it is desirable that a milk council be constituted.

(2) That the area to be covered be confined to the City of Invercargill. (3) That the City Council take the necessary steps to submit a local Bill to Parliament on the lines of the Auckland Act, with its proposed amendments, except that the personnel of the proposed milk council for Invercargill be limited to five, being three from the city council, one representing the milk vendors and one representing the milk producers. (4) That in view of the difference in population of the two cities and with the object of giving the proposed council a fail- trial, it be strongly urged that the maximum levy to be charged by the said proposed council be one-half penny a gallon. The committee realizes that milk is an essential item of diet to the community generally, and is of the utmost importance to infants in particular, and it considers that the steps recommended herein, if given effect to, should be the means of securing the desired standard of purity and quality when delivered to the consumer. In conclusion the committee desires to state that it is of opinion that though the proposed milk council may, and doubtless will, be of considerable benefit to retailers and wholesale producers, the greater benefit will obtain for the consumers in that they will be assured of a wholesome and good grade article at a reasonable price. The committee does not consider that the formation of a milk council will have the effect of increasing the price to the consumer, although of course, it must be understood that prices will, as in the past, fluctuate in accordance with conditions operating in the dairy industry generally, as reflected in the price for butterfat at the factories. In any case the milk council has power to control the price. Price Not Increased. That the price would not be increased by the formation of a milk council was stressed by Councillor Tattersfield when formally moving the adoption of the recommendations. He said that the question of some adequate control of the milk supply had been fully discussed by the subcommittee and it could not do better than follow the example set by the Auckland City Council. Tire proposed milk council would ensure a control both of the quality and of the price of milk and so prevent any attempt to exploit the public. Some officer or inspector would be appointed to take charge of the milk and do the necessary sampling. The proposed levy of one half-penny a gallon would not affect the retail price at all; indeed, he doubted if more than one farthing would be levied. Standardization would have the effect of reducing the retail price, he continued. Without statutory powers they could get nowhere. He was quite satisfied that a farthing a gallon which, in Invercargill, would produce £450 per annum, would be adequate to appoint an inspector who would make it his business to visit all producers and to issue a license from the council in respect to all milk up to standard.

The Mayor (Mr John Miller): Would you have any control outside the city? Councillor Tattersfield: No producer could sell milk in Invercargill unless he possessed a license from the milk council.

The Mayor: Would you have any control over his source of supply? Councillor Tattersfield: Yes; it would be a breach of his license to bring into Invercargill milk below the standard. We must have the power to issue the license, for without that power we could not attain the desired aim—pure milk, at the lowest reasonable price, assured to the consumers of Invercargill. A farthing a gallon is a mere bagatelle. The motion was seconded by Councillor W. G. Tait. Price Fixation.

Councillor G. E. T. Dorman said that a great deal of consideration should be given to the proposal that the milk council, on which councillors were in the majority, should fix the price of milk. He submitted that it would be better were the minimum and- maximum prieje fixed by the milk council. This would not affect the quality of the milk which might suffer were there the one fixed price. A fixed price might be all right for a standard article, but it would not tend in the case of milk to encourage the production of a high quality article. He moved that the whole matter be referred to a special meeting of the council. Councillor E. J. McLachlan seconded

the amendment, urging that it was important that milk of a high quality was distributed. He said that more facts should be before the council before a decision was reached. Councillor H. Ritchie, while speaking appreciatively of the work of the committee, said he failed to see that a levy of a half-penny a gallon would not increase the price to the consumer. Auckland’s population was 200,000 and Invercargill’s 25,000, yet the same control would have to be exercised. He submitted that the council was not concerned with the price of milk, but its quality, and its quality was really the concern of the Health Department He would like to see fuller consideration given to the matter. Councillor J. R. Hanan also urged that a special meeting of the council should be held, arguing that there was not sufficient information in the report to guide the council. ■ Supporting the amendment, Councillor A. J. Service (a member of the committee) said it was more in accordance with his own views when the matter was under discussion. Before a comprehensive scheme was adopted, he thought they should endeavour to first ascertain whether the necessary statutory machinery at present provided for could not be used in the matter. He favoured the adoption of the Dunedin scheme. In Dunedin, the Department of Agriculture and the Health Department had been asked io co-operate a scheme brought forward. Under that scheme there was no question whatever of price control. After Councillor Tattersfield had briefly replied, the amendment that the matter be considered by a special meeting of the council was carried.