DAIRY CONTROL

Wanganui Chronicle, Volume LXXXIII, Issue 19830, 3 May 1927, Page 9

DAIRY CONTROL

THE COMPULSORY CLAUSES CONDEMNED BY RATA SUPPLIERS e (From the “Chronicle’s’’ Hunterville Correspondent). A meeting of the Rata Dairy Com- ■ pany’s suppliers was held in the Argyle ; Hall on Saturday afternoon for the purpose of securing an expression of opinion on the policy of the Dairy Control Board. Mr R. G. Dalziell presided over a fair attendance. He stated that the directors of the company desired to have the opinion of the shareholders. 'ln his opinion, the Board’s price-fixing policy had caused all the trouble by annoying the buyers at Home, who were too strong financially to be forced to buy at a fixed price. Mr W. C. Smith moved: “That the directors do all in their power to have all compulsory clauses removed, so that companies can do what they like with their own produce.” The motion was seconded by Mr Parton. An Amendment. Mr W. Hart (a director of the company) moved an amendment to the effect that the company instruct its delegate to support the present policy of the New Zealand Dairy Control Board. Speaking in support of his amendment, he said that, in his opinion, the fall in the price of butter on the Home market was not entirely due to the Control Board. Denmark had been sending more butter than usual on to the London market, owing to America and Germany imposing big tariffs on butter imported. Another cause of the difficulty in getting higher prices was the limited spending | power of the masses in Great Britain, owing to the prolonged coal strike. Mr Hart was of opinion that the Board had not had a fair start, there being abnormal quantities of butter in store when the board took over. He concluded by stating that, under free marketing, companies could never get the regularity of supply so necessary to return the best average price to the producer. The amendment was seconded by Mr L. Hammond, who said that control without the compulsory clauses would not be effective. He was not in favour of too drastic a use being made of the power given in those clauses, but he thought the Board should be given the power to use them if circumstances warranted it. He thought the Board would do the industry a lot ot good by regulating shipments and preventing speculation in our produce by the combincs»in the Old Country. Under free marketing, the company had been lucky in (disposing of its butter, but other companies had used the same tactics and not been so fortunate. It was doubtful if the company would have the same measure of success if the old system was reverted to. The Motion Carried. A lengthy discussion followed, several suppliers speaking in favour of the motion and several in favour of the amendment.

Mr T. Vile considered that the Board should not receive all the blame for tho drop in prices and he thought it should be given another year’s trial.

The chairman said that he was opposed to the compulsory clauses. Tho policy of price fixation had been a wrong move. The combines in the Old Country were too strong to dictate prices to. He considered the Board held too much money in reserve. He admitted that they required reserves of money ,but not such large sums as the Board kept back. The dairy farmers required the money for their produce as soon as they could get it. Under free marketing the directors of the company had ben able to gauge the amount to pay out far more accurately than under the present system. Mr Dalziell then read extracts from a letter received from Mr McManaway, who is at present in the Old Country. Mr McManaway stated that much of the goodwill which the Dominion had built up had been lost and would be hard to get back. No board, divided as the Control Board, had been could do any good for the industry. After further discussion, the chairman put the amendment, and it was rejected on a show of hands. The motion, on being put, was carried by a substantial majority.