RELIEF TO DAIRYMEN

Taranaki Daily News, 6 October 1934, Page 6

RELIEF TO DAIRYMEN

STATE ACTION FORECAST CHANGES IN CONTROL LIKELY. CONSTITUTION OF THE BOARD. MORTGAGE CORPORATION PLAN. By Telegraph—Press Association. Wellington, Oct. 5. Legislation expected to be introduced shortly as a result of the preliminary report submitted to Cabinet by the Dairy Industry Commission is believed to involve a drastic overhaul of the industry. It’ is anticipated that the constitution of the Dairy Produce Board will be changed and that greater powers of control will be vested in the new board. Control of the industry is at present divided between two authorities—the. Dairy Division of the Department of Agriculture and the Dairy Board. Generally the Dairy Division exercises the internal control, which includes the grading of produce for export, and the Dairy Board exercises jurisdiction over the industry’s external affairs. This includes control over the shipment of produce and its overseas marketing. It is understood that the board is to be made the supreme administrative authority, and that if the division is not placed directly under the board its present grading powers will r at least be transferred to that organisation. The present constitution of the board is nine producers’ representatives, two Government representatives and one merchants* representative. It is believed that the view has been taken that a board of twelve members is too unwieldy and not conducive to effective administration.

It is likely that the new board will contain a greater measure of Government representation and that provision will be made for the co-opting of scientists. Representatives of the producers are now elected by the suppliers on a tonnage vote, but it is believed that the producers’ representatives on the new board will be elected by the directors of dairy companies. Proposals designed to bring about an Improvement in the quality of New Zealand dairy produce are likely to figure prominently in any legislation introduced with a view to the rehabilitation of the industry. The latest quotations show that butter is realising as low as 67s on the London market, but on top of this exporters have the exchange premium of 25 per cent. To what extent the Government is prepared to assist the dairy fanner selling his produce in the overseas market remains to be seen, but there is believed to be a possibility of something being done to assist the local market on the lines of the Paterson scheme, which recently operated in Australia. The National Mortgage Corporation proposal outlined in the Budget is almost certain to be part of the Government’s scheme for placing the industry on a sounder basis.

It is unlikely that the industry will be given the benefit of a'direct subsidy, but the Cabinet is said to have given close consideration to a finance plan involving the issue of bonds at a rate of interest not exceeding 3 per cent., to be reviewed every three years by the Reserve Bank. ■>'