DAIRY REGULATIONS

Taranaki Daily News, 3 May 1933, Page 7

DAIRY REGULATIONS

REPLY MADE TO CRITICISM CASE FOR NEW RESTRICTIONS. MR P. O. VEALE REVIEWS POSITION. A tolerably ,good case for the new regulation making it compulsory to obtain permission to establish a new dairy factory could be made out, said Mr. P. O. Veale, at the Hawera Chamber of Commerce meeting on Monday. Mr. A. O. Heany, organising secretary of the Associated Chambers, had just deprecated the regulation as an interference in business. . Mr. Veale said that with conditions as they were and the present system of marketing a good case could be made out for the Government’s action. The quality of export cheese had been steadily declining, and regulation after regulation had been passed to improve it. Farmers would stop supplying a factory where the regulations were enforced, and supply another that was free and easy. A regulation preventing farmers from changing during a current season had been made, and this was necessary for the financial stability of the companies. In cheese districts butter companies were trying to get established. If a farmer’s milk was rejected at the cheese factory he could skim it and. supply it as finest cream to a butter factory. This would defeat the object of the regulation preventing a farmer changing to another cheese factory. > The indications in several quarters were ;rhat there was a move to set up butter factories in cheese districts, continued cMr. Veale. This would drive the cheese I factories into the bankruptcy court. It j would involve a cataclysmic change in ' {the industry to set it upside down and restore individual competition. It had also to be remembered that one phase of individual competition had produced the present disastrous situation.