“MILK WAR” AT AUCKLAND

Taranaki Daily News, 18 July 1933, Page 7

“MILK WAR” AT AUCKLAND

AGREEMENT ON NEW PRICE MINISTER ATTENDS CONFERENCE. RUINOUS COMPETITION TO END. ONE FIRM’S ATTITUDE DOUBTFUL. By Telegraph—Press Association. Auckland, Last Night Declaring that the Government would not stand by and allow small farmers around Auckland to face the ruination which the ruling prices for milk in the city would produce, the Acting-Minister of Industries and Commerce, the Hon. J G. Cobbe, to-day appealed to a conference of interested parties to. sink their differences and ffiake a fair, binding and lasting •agreement. He said that the Government was greatly concerned by the Auckland milk problem, but that 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. It had been suggested that one concern was trying to obtain control of the distribution. No Government liked anything tending to monopolistic control of industry, particularly one dealing with foodstuffs; nor did the Government stand for excessive prices being paid by consumers. • “Although the Government is not anxious to' legislate, it would like this to be clearly understood,” said Mr. Cobbe. “The Government is actively engaged in bringing about settlement on small holdings. Therefore it cannot stand idly by and allow the small farmers who are already on the land to be ruined. It cannot do that, and moreover, it will not do it. The public would not stand for it.” Mr. Cobbe said he understood the milk supply in Auckland was being taken from farmers at to 3d a gallon, whereas Wellington farmers were receiving Is lid. The present prices were absurd. After a long discussion the Minister proposed a private meeting with a committee representing all interested parties. Little heady/ay was made and open 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 prices was the only solution of the problem. Mr fc Cobbe said legislation would be a two-edged sword as such a council might eliminate many producers and vendors now operating. He proposed the conference should agree to fix retail prices at fourpence a quart loose and fourpence halfpenny bottled, and that vendors should pay producers not less than 6jd a gallon nett at the farm. Although, this proposal met with a mixed reception it was eventually agreed to, but one organisation which is credited with being responsible for reducing the retail prices to the present general level of 3d a quart and 4d a quart bottled dissented from the proposal. The Minister expressed his view after consulting representatives of that organisation that they would come into line, but these made no such public statenVAt. It wasS&ranged 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.