“ BUTTER SLUMP IS DUE TO GAMBLERS,” SAYS MR HOLLAND.

Star (Christchurch), Issue 18144, 2 May 1927, Page 13

“ BUTTER SLUMP IS DUE TO GAMBLERS,” SAYS MR HOLLAND .

BOARD OF CONTROL NOT HELD RESPONSIBLE. Ter Press Association. WELLINGTON, May I. Mr H. E. Holland, the Leader of the Opposition, is delivering a series of addresses in various North Island towns in the course of which he has expressed his views on the dairy control question. As they have not so far been reported the following summary is given:— When the vote was taken in June, 1923, 71 per cent of suppliers recorded themselves in favour of the compulsory clauses, and the Labour Party supported the Bill. He claimed that the position which had arisen recently was not. due to the operations of the board | but to the work of speculators and the manner in which supplies had been held in storage prior to the arrival of the new season's supplies in November. The fact that the butter had been stored was used by speculators to discount Its value and bring v "down its price. In some instances people were advised not to use stale New Zealand butter but to use fresh Danish instead As soon as fresh New Zealand butter was aA’ailable at a stated price the speculators proclaimed the splendid quality of the stored butter and tried to use it to get the new season's butter down to 140 s. The policy of certain speculative interests was to force prices down and then buy in large quantities to enable them to repeat the operation later. MR PATERSON’S ATTITUDE. lie reviewed the appointment of Mr Stronach Paterson as the Government’s representative on the London agency and contended that Mr Coates was behind Mr Paterson and the attitude of the latter was that of the Government, lie strongly condemned the appointment of three Toolev Street representatives to act with the London committee in forcing prices and said he had seen it stated that “these Tooley Street men, while supposed to be acting in the interests cf the board and the consumers, had been buying heavily in Argentina butter in 7 anticipation of a rise* on the market, which they themselves were endeavouring to create.” Mr Paterson had now resigned, but in the meantime the damage had been done. From the first he (Mr Paterson) had taken up an antagonistic attitude towards control and had done everything to assist the opposition to it. He reflected the desires of Toolev Street and the moves behind the back, and without the knowledge, of the board were apparently designed to undermine control. The policy cf the Government had let the board down badly. The Prime Minister interviewed the acrents cf Toolev Street without consulting Mi* Grounds, chairman of the board, who was then in London. Mr Grounds had offered to be present at Ike meeting, but was not invited. LABOUR PARTY'S PROPOSALS. Afterwards Mr Coates stated that he had asked the deputation if they wished Mr Grounds to be present and they said they did not want to see him. Mr Coates acquiesced and did not invite Mr Grounds. The whole deputation had been arranged behind the back of the London agency and the chairman of the board. Mr Coates’s action seemed designed to keep Mr Patterson in a position where he was doing incalculable harm to the marketing of New Zealand produce. The Labour Party suggested that arrangements should be made with cooperating and distributing organisations in Britain to undertake the marketing of our produce. Some of these endeavoured to eliminate many of the intermediate charges that now stood between the producer and the consumer and in many cases it was fitting that the products of co-operative factories in New Zealand should be handled bv the co-operative distributing institutions of Britain. New Zealand should also open up negotiations with the British Government for the establishment of a food purchasing council through which the produce of New* Zealand could be sold to the British ponsumer. BRITISH LABOUR'S SYMPATHY. Proposals ou these lines had been considered by a recent conference of the British Labour Party when, on the motion of Mr dynes, resolutions were carried in favour of the British Government instituting the bulk purchase of food supplies and raw materials in the dominions and elsewhere, cither by I Government monopoly or by organisations acting under its control and sup- , ervision so as to secure stab’e prices. J and also in favour of control and the cheapening of the transport of food supplies to Britain. Arrangements of this kind would constitute the best form of British prefe rencc. Rccipro- I cal undertakings could be made, the British taking our primary products and we going to Britain for secondary produc.ts such as machinery, motor vehicles, etc. To-day we were sending large sums of money to America and Canada for machinery and motor vehicles and other commodities and those countries were taking very little from us. Consequently, the balance of trade was heavily adverse to us. In the case of our transactions with Britain the balance of trade was more often in our favour than against us. In any case, our marketing must be organised along lines that would eliminate the elements that gambled with the people’s food supplies. The board must I be upheld against Toolev Street and manipulators and speculators and abo against the methods cf the Coates Government.