DAIRY CONTROL BOARD

Taranaki Daily News, 3 November 1926, Page 10

DAIRY CONTROL BOARD

ITS PROBLEMS AND POLICY ADDRESS BY BOARD MEMBERS. SOME HISTORY AND PROSPECTS. (From Our Own Reporter.) Stratford, Nov. 2. Subsequent to the business of the Taranaki Dairy Employers’ Federation in the Stratford Town Hall to-day, at which representatives of dairy companies from all over Taranaki ' attended Messrs. H. D. Forsyth and J. R. Corrigan, members of the Dairy Control Board, addressed the meeting and explained the policy of the board on several matters. They afterwards answered a large number of questions and were accorded a hearty vote of thanks at the close of the meeting. The president of the federation (Mr. J. S. McKay, Riverdale) presided. Mr. Forsyth prefaced his remarks by observing that from time to time a good deal had been said about the board not giving out enough information about what it was doing. It was accordingly felt that the present meeting was an admirable opportunity to meet producers and discuss the board’s views with them, as it was felt the industry \ deserved a little more information'than had been given in the past. In the first place he wanted to contradict rumours that the board was divided in itself. While lie admitted that opinions had certainly differed during the formulation of the board’s future policy, he wanted to say that the board was now unanimous on all the main points of that policy, and was now in a positition to welcome publicity. A lot was being said in connection with the large quantities of goods stored at Home, he said, but it was plain this was not due to the board’s operations “Why,” he said, “there are factories that have stored the whole of last year’s manufacture. It may seem inconceivable, but such is the position, and the produce at present in store at Homo has not been held up because of the board's operations at all.” The board did not know exactly what amount of produce was in store at Home. They had been told that some 700,000 boxes of New Zealand butter was involved, but the board could get no definite information on the position. However, he w'ould say that had the produce of New Zealand been under the board’s control earlier, this unfortunate position would never have arisen.

WORK OF THE BOARD. Mr. Forsyth went on to quote extracts from the New Zealand Exporter regarding the policy of the board, showing that it exercised control of marketing of exported produce at Home and in North America? To do this it was found necessary to exercise control in New Zealand. The board's activities extended also in the direction of regulating shipping, insurance, freight, 'refrigeration, etc., and they all knew- that Mr. Grainger, of Patea, had recently been appointed as export adviser, or supervisor of loading, seeing to the temperature of the refrigeration chambers, handling, etc. Tl. quotation went on to deal with the policy of sales, finance and marketing, after which Mr. Forsyth said the New Zealand board gave instructions to the London agency as to the requirements of the board. The London manager took his instructions from the London agency, which received a lead as to prices from the committee recently set up of three representatives of the board and three representatives of Tooley Street merchants. In its dealings the board would act on the advice of its London agents, and so far, he could assure the meeting, there was no intention of holding back produce in an endeavour to beat the market. The board did, however, desire to spread its shipments so as to arrive at regular intervals on regular markets, and to this end it was conceivable that a small proportion, say, about 10 per cent., might sometimes to be held back in ordei- that uniform distribution might be effected. By its organisation the board was able to set up an intelligence department, which watched the markets of Great Britain and other countries. It was able to advertise New Zealand produce and work in harmony with the London merchants. It also reserved to itself the power to transfer butter and cheese from what was known as a weak holder to a stronger one. That was to say, if a merchant held more produce than his clientele warranted, the board could transfer a portion to another merchant, who did not have enough. The board’s credits were now all arranged and were working very satisfactorily. All credits were in the name of the local banks, as required free of local exchange, local banks participating in a share of the ordinary London exchange. NO BEATING ABOUT THE BUSH. Mr. W. C. Green, Opunake: I want to ask Mr. Forsyth straight out, without any beating about the bush, if he is in favour of absolute control. Mr. Forsyth: You are not going to get any beating about the bush. I have already voted for absolute control, but I made it plain to the board that J would like a say as to how' far the control would go. Mr. Green referred to Mr. Forsyth’s remarks regarding the board not storing produce at Home, and asked was it not a fact that through the board’s control of shipping local companies had been forced to store their shipping in New Zealand awaiting shipment. Mr. Forsyth: The board lias not compelled anyone in New Zealand to store its produce. A voice: Rot! The chairman then called upon Mr. T. A. Winks to address the meeting, but Mr. Vinks explained that he was a Government nominee on the board, and as such preferred not to make any public statement. Mr. J. R. Corrigan then took the flooi, first stating that lie was only a new member of the board and bad only attended two meetings. He had, however, had access to the board's files and was

fully conversant with the business done prior to his election. He had read a lot in th- Press about the methods of the board, brought about chiefly by the methode of the London merchants and the producers in the country. He believed the criticism could be narrowed down to one plank in the board’s policy. That was the question of price fixation, which had now been done away with. At the present time it was not the intention of the board to go in for fixing prices for dairy produce at all. As for the reason for this change of attitude, he explained that he himself had given notice to move at the meeting before last, that certain minutes regarding the matter of fixing the price be deleted, but before the motion was given effect to, the five resolutions, of which prominence was recently given in the Press, were agreed upon, thus making his motion unnecessary. It was agreed that the 30 merchants engaged in handling New Zealand produce should get together and appoint three representatives to act in conjunction with three representatives from the board’s London agency to discuss supply and demand and give a lead as to the. price which might reasonably be expected for shipments of butter and cheese. PRODUCE HOLDING CONDEMNED. Mr. Corrigan went on to read extracts from the report of the Imperial Economic Committee on marketing and preparing for market of foodstuffs produced within the Empire and presented to the Imperial Parliament. This report condemned the practice of holding up produce and recommended that control boards could do a lot in the direction of spreading produce on to suitable markets during the two periods of each year when, owing to the arrival of big shipments from overseas coinciding with the flush from the Continent, a slump in dairy produce invariably set in. The report confirmed the actions of the board in many ways and justified its new policy of leaving an indication as to price to a committee with equal representation between the producer and the merchant. Dealing with his own position on the board, Mr. Corrigan said he was at all times going to do his best in the interests of the producer, and he felt he could do no more than that. It was not his intention to interfere with what had already been done, and he had not g-one on the board with the idea of criticising control. At present no one man dominated the position of the board as had perhaps been the case in the past. They now had representatives of the merchants and of the London agency to discuss the question of price, and in this connection he pointed out that the London agency representatives consisted of two representatives of the producers and one Government nominee. If both the producers’ representatives agreed that certain proposals were not in the best interests of the producers, they had power to veto any such proposals. INTERNAL ADMINISTRATION. Touching upon the question of internal administration, Mr. Corrigan said one person had been a bone of contention, but it had to be remembered that when a man was employed to do a certain job he could not very well be disposed of before he had at least started in on his job. This person now had his wings so clipped that he had to keep within a well defined policy. If he overstepped the bounds of this policy • his services could then perhaps be dispensed with. In conclusion, Mr. Corrigan assured the meeting that such Press reports as they had read of meetings of the board having been noisy and acrimonious were pure fabrications. In point of fact the meetings had always been conducted with decorum and no member even raised his voice. A voice: I hope the Press will report that. In reply to Mr. Muggeridge (Alton). Mr. Forsyth reviewed the steps leading up to the formation of the committee in London, and stated that the board had actually made a slight modification in policy in order to bring about the unanimity of the board. Mr. Gibson (Rahotu): Then I take it that the board was not, in point of fact, the harmonious gathering Mr. Corrigan would have us believe. Mr. Snowdon asked if Mr. Corrigan was in favour of maintaining the board's policy of absolute control. In reply Mr, Corrigan pointed out that Rome was not built in a day, and although some people thought the resolutions lately decided upon were not conducive to the best interests of the industry, he personally felt that, while they might require some slight modification, they were based on the l ight principle. They were now working along the same lines as the Australian Board, and on the same policy as the Danes. The board, however, could not do exactly as the Danes were doing, for whereas they were only one week from their markets, New Zealand was six weeks’ sailing distant. DEVIATION IN POLICY. To another questioner, Air. Corrigan pointed out that the deviation in the board's policy lay in that, while previously one man had more or less dictated the selling price, that matter was now left to the equal committee of merchants and board’s representatives, not to fix prices, but to give the London agency a workable lead. Mr. A. W. Budge (Te Popo): Then the decision of this committee is merely a basis for negotiation. Mr. Corrigan: Exactly. Mr. Gibson referred to the time wher the board was being formed, saying thexponents of the idea had told producers that the Danes 'fixed their price. Now Ms. Corrigan would have them believe the Danes only established a basis of negotiation at the meetings in Copenhagen. Mr. Forsyth said the Danes did set a price, but had no compulsion. They were more loyal than had been the case in New Zealand. Mr. Gibson: In other words, you are now slightly better informed than you were before. He asked if the change of policy on the part, of the board went as far as to admitting the Press to their deliberations. Mr. Forsyth said a reporter from the paper The Dairy Exporter was actually present at the last meeting of the board, and it was ho;,cd soon to welcome representatives of other papers at the meetings. Replying to a further question by Mr

Gibson, Sir. Forsyth said the financial position was that'it would cost the New Zealand producer about £20,000 extra by accepting 30-day drafts instead of sight drafts, but it was felt that th» merchants at Home had given so many concessions that New Zealand could afford to meet their wishes in this direction. For instance, the rebate of J per cent, in commission meant the saving of about £BO,OOO to New Zealand dairy farmers. Mr. Honcyfield asked the contents of the confidential cable from the Prime Minister, but Mr. Forsyth, while he admitted having the cable at hand, explained that it was sent to the Minister of Agriculture, who had handed it on to the board. Without the Minister’s consent he was not at liberty to disclose the contents. Mr. Honeyfield: Well, that cable seems to be of great interest. Will you get your board to try and obtain consent to its publication? Mr. Corrigan said the cable had been fully considered by the board and acted upon. “I want the Press to note that statement, because it has been reported that the board did not fully consider the contents,” he said. MR. WRIGHT’S POSITION. Mr. Gibson: Is it correct that Mr. Wright handed in his resignation? Mr. Forsyth: I hardly like the Press to report this, but Mr.' Wright’s resignation was practically in our hands. Mr. Gibson: Well, I can only assume that a compromise was reached. Mr. Forsyth: Mr. Wright compromised. Mr. Gibson: Is it a real conversion that the board has abandoned all idea of storing up produce? Air. Forsyth: All idea of storing? Air, Gibson: Air. Corrigan said so. Air. Forsyth: We have not abandoned all idea of storing, because, as I have already explained, it may at times be necessary to hold back a small portion of our produce in order to arrange the distribution of our markets. Air. Farquhar (Awatuna) asked if there was any chance of getting a greater advance for butter and cheese. In reply Mr. Corrigan said the board had already asked the London agency to endeavour to arrange a more liberal advance for cheese. The price at Home, he said, now warranted a better payout. Air. Gibson said at a meeting of South Taranaki producers the board had been asked if it was not possible to pay out individual factories their own receipts for cheese. The board had replied that this was not possible, but at the same time had debited individual factories with shrinkage. If it was possible to take away in one direction, Mr. Gibson thought it should be possible to pay out in another. Mr. Corrigan thought there was probably nothing to prevent the board from adopting the course suggested, but pointed out that it would mean altering the policy already approved of paying out according to grade. Air. A. Lees (Okaiawa) asked for an indication of the board’s attitude towards the announcement of the prices realised by individual shipments, but Air. Forsyth said the matter had not yet been discussed by the board, and he would not like, at this stage, to give a personal opinion. A speaker: Seeing the board lias modified its policy on several occasions, do you not think they now realise they have bitten off more than they can chew ? Another speaker asked if the opposition received in New Zealand to the board had weakened its power in London. “No, we are quite solid at the other end,” said Mr. Forsyth. Air. Aluggeridge then taoved a hearty vote of thanks to the members of the board, which was carried with acclamation. CHAMBER OF COMMERCE. ANALYSIS OF SOIL. AUTOMATIC TELEPHONE. The monthly meeting of the executive of the Stratford Chamber of Commerce was held to-night. Present: Messrs. J. B. Richards (chairman), S. Macalister, W. L. Kennedy, P. Thomson, H. Fleming, Truby King, W. Macdonald, A. Orton (stationmaster), and A. W. Downer (postmaster). The chamber's request for an examination of and a report on local soil conditions has been acceded to by the Minister of Agriculture, and Mr. L. D. Foster, M.Sc., an officer of the Chemical Division, will visit the district this month for that purpose. Its was decided that the president and Mr. Kennedy, who, as Mr. Richards pointed out, has an intimate knowledge of the back country, should meet Mr. Foster on his arrival. The postmaster advised that the apparatus for the automatic telephones was being railed to Stratford this week. PERSONAL. Mr. J. Shot ter, of Midhirst, left by the mail train yesterday morning for Wanganui to attend a meeting_of the Casein Company.