DAIRY INDUSTRY

Timaru Herald, Volume CXXXVIII, Issue 19957, 15 November 1934, Page 11

DAIRY INDUSTRY

PROBLEMS OF THE MOMENT REVIEW BL MR COATES By Telegraph—Press Association WELLINGTON, November 14. The Minister for Finance (the Rt. Hon. J. G. Coates) in a statement issued, reviews the problems of the moment affecting the dairy industry. The Minister says:— “The present export season for dairy produce is the last season that is covered by the Ottawa agreement. We are guaranteed continued preference; but it is open to the United Kingdom in August, 1935, to introduce a system of quantitative regulation of supplies. Dominion dairy produce may be included even earlier than that date, and, not through our own choosing, it may well be that quantitative regulation of supplies will be a topic under discussion, and alternative methods of dealing with the dairy produce marketing problem in the United Kingdom may also be discussed. “These subjects are mentioned not to alarm producers or the leaders in the industry, but simply to call to mind the real facts of the matter. For myself, I am very well aware of the pitfalls Inherent in any system of quantitative regulation. It is certainly unthinkable that any arrangement could be contemplated which did not cover all sources of supply, or which omitted competing and substitute products.” Executive Commission. Discussing the appointment of the Executive Commission of Agriculture, Mr Coates gives an explicit statement of its powers and purposes, and proceeds: “The new authority is intended to be a co-ordinating body, working in close co-operation and harmony with the existing producers’ boards. As I stated in the debate in Parliament, it is hot intended to dragoon or disturb these boards in their work; but merely to co-oiylinate their efforts in a comprehensive manner. Those who have read the act will have noticed that in itself it does not give extensive powers to the new Commission of Agriculture. It provides, under its enabling sections, that the Government may confer powers on the commission, and that the Government may by order-in-council proceed to give effect to recommendations made by the Dairy Industry Commission. An important proviso requires that any order-in-council made under the act must at the first opportunity be laid before Parliament, and must be expressly ratified by act of Parliament. This is an answer to the fiction that an “irresponsible dictatorship” has been set up. The Government has already given an undertaking that in all matters affecting the primary industries, and connected with the proposed action under the enabling powers of the Agriculture (Emergency Powers) Act, we will consult the industry concerned. This undertaking will be honoured to the full. It certainly is our desire that the Dairy Board should itself, on behalf of the industry, have the authority and responsibility of carrying through that which is required in the producers’ interests." Problems Defined. The Minister concludes by defining under two heads the problems which face the Dominion and to a special extent the producers of the Dominion. These are as follows: (a) Within New Zealand we have the challenging fact that in spite of the farmers’ success in producing more, and altogether in doing their job more competently than ever before, their financial returns are smaller and the outlook is uncertain; and (b) In the United Kingdom we are witnessing developments, the end of which no man can yet foresee, in the direction of regulating the markets for agricultural products. To no country is this of more vital concern than it is to New Zealand. “Tire view which I strongly commend to the attention of all who have a responsibility in helping to arrive at a decision as to our attitude is that we should do our very utmost to cooperate and to avoid conflict with our traditional policy. It coincides with our present requirements, and it promises to serve us well in the future.”