DAIRY PRODUCE.

Taranaki Daily News, 12 May 1925, Page 12

DAIRY PRODUCE.

COMPULSION IN CONTROL. OPPOtSITIOX OF PRODUCERS. FORMATION OF A LEAGUE. MEETING AT NEW PLYMOUTH. The opposition that has been evinced in this district to the Dairy Produce Control Act. and particularly to that section of the measure relating to the compulsory marketing of produce, was ad\anced a further stage yesterday, when, at a representative gathering at New Plymouth of Taranaki dairy producers, a resolution was passed forming a New Zealand Dairy Producers’ League for the purpose of taking united action again- ; the adoption and enforcement of absolute control in the marketing of New Zealand dairy produce for export. It was also resolved that immediate steps be taken to amend the Act by having the clauses interfering with free marketing deleted, and also that steps be taken to revive the ward system of electing members of the Control Board. The meeting, which was attended by about 200 producers, was convened by Messrs Jacob Marx (chairman of the Mangatoki Dairy Company), VV. C. Green (Rahotu), and M. Fleming (Cape Egment). Mr. VV. C. Green was voted to the chair, and Mr. (x. Gibson (Ra’.iotii) was appointed secretary. Mr. Jacob Marx said that they had been called together to deal with a very important question. He differed from the Control Board on the question of marketing. because lie felt it was premature. and he felt that he and. others who differed were quite at liberty to do so. He briefly outlined the steps that led to the introduction of the Control Bill, and stated that he was quite in aooord with it regarding improvement of shipping and exchange, etc., because he felt that without some system of control it would be difficult to effect any improvement in handling such a large quantity of produce.. The Bill, he said, had been framed on the same lines as the Meat Control Act and had the same powers of compulsion. but the Meat Control Board had not found it advisable to enforce the compulsion as regarded marketing. He supported the Bill up to a certain point because he felt that it had plenty of scope to deal with shipping and exchange. which was costing dairy eompames about £500,000. annually. The .board had gone into the shipping question and had. presumably, done all it could, having effected a reduction in freight. This saving was, however, more than swallowed up by the irregularity of delivery, which caused a great slide in prices, and he -instanced the fact that in January four shipments with 40,000 crates arrived, realising up to 150 s. whereas in February eleven shipments totalling 230,000 crates were landed and as a result there was a slide of 70s per cwt. THE ACT A COAFPRdMISE. His idea had been to have a controlling body comprising twenty members from the North Island and ten from the South Island, who would select an executive. However, the Legislature had the last say and the Act as it now stood was pul through as a compromise with the Labour Party. It was understood at first that control was not to be exewised in regard to the marketing of produce, but when the delegation came back Mr. VV. Grounds (chairman of the Dairy Control Board), notified that it was proposed to enforce the absolute control in the marketing of dairy produce. The speaker and Mr. Agar, of the South Island, opposed that, as they felt it would be a disastrous measure fit the present stage. He considered that the • Bill had been rushed through too quickly, and that the scheme was nothing more than a wild cat adventure and a dangerous one at that (applause). He helped to get the Bill through to a certain stage, but when they talked of introducing compulsory marketing they went too far altogether. There was danger to the living of hundreds. Fortunately the compulsion was not coming into force for twelve months, and he thought they would be doing a good thing for the Control Board if they took steps to stop the introduction of compulsion. Mangatoki suppliers had unanimously opposed compulsion. The subject had been traversed so often that he did not think it necessary to again cover the ground, and he therefore moved: “That this meeting of New Zealand dairy producers form a league, to be called the New Zealand Dairy Producers’ League, for the purpose of taking united action against the adoption and enforcement of absolute control in marketing New Zealand export dairy produce by the New Zealand Dairy Produce Control Board.” \ Mr. Corbett ( Oxford Road) seconded. WERE PROMOTERS IMPARTIAL?

Mr. Gibson stated that he had always opposed the Bill and he resented the suggestion that, those who opposed it were in the pay of the merchants, a statement that was entirely unfounded. The producers and their companies had paid all expenses in connection with the campaign. The. late Premier* had said that the Bill was of no value without compulsion, but lie said that the probability was that it would not be put 1 into action. Possibly the Prime Min--1 Lster may have anticipated a cataclysm I like the late war. Mr. Grounds had also stated that there would be no compulsion whatever unless by more careful I invesi igation such procedure was found ' to be absolutely necessary in the in--1 terests of the producer. The investiga- [ tors were the promoters of the Bill, jand was if possible that they could be (impartial? Their minds were already | made up A though Mr. Grounds had told them a few weeks ago that he haA gone 'to England and Canada with a perfectly . open mind. Personally, the speaker thought they went with a definite purpose, and he a.iked them to think whether it was right, fair and just that a commission of red-hot advocates of compulsion should have gone abroad. Those opposed to the Bill suggested that an independent commission should be set up. Regarding finance, he said that Mr. Grounds could only say that he had assurance's, but they knew that a venbal statement was not binding. As live businessmen Tooley Street merchants would say they would give all the help possible, but when it came to putting up the money something binding was required. How was it possible to get an 80 <>r 90 per cent.

advance on stored goods? There would be no margin left to pay charges. Continuing. Mr. Gibson said that the compulsory clause absolutely forbade them to sell their produce in New Zealand, but why should they be denied the absolute right of selling - at the factory door the goods they spent their lives in producing. Only a national exigency could take this right from them. The motion should assist them to regain their rights. PRODUCERS JUGGLED WITH. Mr. J. B. Hine said that he had never been deceived by the Biff. Mr. Grounds’ language was couched in vague generalities. Only on two occasions had he beard him say anything definite. Once at Tikorangi, when he said that the Bill ■ did not provide for pooling, nor did he favour it, and about tnvo months ago in that same hall when he denied that he said it. At Wellington a conference was arranged between Mr. Grounds and himself, at which he informed Mr. Grounds that the opposition would be withdrawn subject to certain conditions. They were willing to pay the levy, and hand over snipping and exchange to the board providing the marketing clause was deleted. That Mr. Grounds refused to do. -so it was idle to say they were deceived as to his intentions. The motion was all right as fur as it went, but it was difficult to see how they were going to get rid of the noose they had placed round their neck. He considthat the producers were going to be used politically, and to be juggled with, and the man responsible was the Hon. W. Nosworthy (Minister for Agriculture). The only hope was to interest, the sound businessmen of the community and get back to free trade.

Mr. J. O. Taylor suggested that producers should have a petition forwarded to Parliament demanding that absolute control be cut out of the Act. Mr. S. J. Candish (Patea) asked why Mr. Marx had changed front, having been at one stage an active supporter of the Bill.

Mr. Marx explained that he still favoured it as far as it related to shipping, etc., but he opposed compulsory marketing. He considered that if the producers took the matter up seriously, they could still overcome the difficulty.

Mr. Harding asked how Mr. Marx proposed to provide regularity of delivery at Home unless they had absolute control.

The chairman said that the board had muddled the shipping in the past and were no more likely to feed the market regularly under complete control than they had done in the past under partial control. BOARD FORMULATING POLICY. Mr. H. D. Forsyth, a member of the Dairy Control Board, asked how they proposed to regulate the market unless they had a system of control. Was it not a fact that the Control Board, instead of hurrying matters, was taking plenty of time to formulate its policy, and that fifteen months would elapse before the operations of control would be put into force? In connection with free marketing, was it not a fact that as far as possible the goods could be sent through the same channels as before and paid on grade?

Mr. Marx said he understood that a proportion of the New Zealand produce would be exempt, and he would like to ask Mr. Forsyth how much. If they attempted to regulate the market they might easily be left with their produce. Mr. Irons, a member of the Dairy Control Board, said several inaccuracies had been made by speakers. Mr. Marx had said that they had not regulated shipping. It was, however only by handling the whole of the produce that they could make a good contract with the shipping companies. He would also like to know what grounds they had for saying that Tooley Street was not prepared to work with the board. Had they not already been saved A per cent, commission? Ac was pleased to be at the meeting, because it was in this district that there had been opposition at the' ■start of the scheme. There was opposition now, and it would continue till “the crack of doom.” He denied that the board had muddled the shipping. QUESTION OF DELIVERIES. Mr. Marx said that it would be pleasant news to him if Mr. Irons could assure them that he Juul secured regular deliveries, not despatches. At the end of March this year they had 93,000 crates away less than at the same time last year. It was not the slight saving in freight that counted, as that, was more than counteracted by the glut on the markets.

Mr. Irons said that they had not arrived at that yet. but had endeavoured to do so. Next year it was hoped to have more regular deliveries, but without. control it was impossible to do this. Mr. T. Willcox (Kahui) regretted the absence of Mr. Maxwell, who had honestly and consistently opposed the Control Bill. The meeting liad been called to devise means for killing the Act, and probably the motion would be satisfactory to a certain point. He, however, considered that an executive should bn appointed to take legal means of redre.ss, if necessary approaching the highest court in the land.

Th.e motion was carried, a few voting against it. Mr. Gibson then moved that immediate stops be taken to have the Dairy Control Act amended by the deletion therefrom of any clause or clauses interfering with the free ha lulling, control and sale by each individual factory or company of its own produce.

The motion was carried. The chairman then moved that immediate steps be taken to revise the ward system of electing the members of the Control Board. He had understood that it was to be repealed, hut apparently the election was to be conducted under the same system. The motion was carried.

A committee of seven, with power to add, was set up to work in conjunction with other districts. The committee will comprise Messrs J. Marx (Mangatoki), G. Gibson (Rahotu), J. B. Hine (Tikorangi). \V. C. Green (Rahotu), M. Fleming (Capo Egmont), H. AT. Purdie (North Taranaki), and J. S. Jones (Bell Block). A hearty vote of thanks was accorded Mr. Marx for calling the meeting.