The Wanganui Chronicle. TUESDAY, APRIL 23, 1946. WANGANUI’S MILK SUPPLY

Wanganui Chronicle, Volume 90, Issue 93, 23 April 1946, Page 4

The Wanganui Chronicle. TUESDAY, APRIL 23, 1946. WANGANUI’S MILK SUPPLY

“T'HE present treating house in Wanganui is a credit to the existing owner and one of the cleanest plants I have seen in New Zealand,” said Mr. H. H. Innes, Director of the Milk Marketing Division, when addressing a special meeting of the Wanganui Cty Council on the subject of Wanganui’s milk supply. “It (the treating house) is in excellent condition,” he said, “and can do all that the public demand in Wanganui needs. The difficulty is that there is insufficient milk available in Wanganui for all who want raw milk.”

It is to meet this situation of a larger supply of raw milk for the City that the establishment of a non-profit corporation for the handling of the problem is being advocated. The advocacy has some element of the pistol point in it, for Mr. Innes is reported to have reiterated that if the City Council did not exercise its authority and functions under the Milk Act the Department and the Government would “have to consider some appropriate form of public utility for Wanganui.” This note of compulsion should not have been expressed at the meeting, but the members of the City Council did not feel disposed to challenge this form of advocacy. On the contrary, the alleged non-Socialist majority on the City Council, which .claims to be a Citizens’ Party, submissively accepted the Socialist lead and, without deferring the matter for further consideration, supported the Mayor’s motion, which was carried without dissent. Thus the pass was again sold to the Socialists.

The public has not been favourably disposed toward the scheme which Mr. Innes imposed upon Wanganui only a few months ago. The City Council then satisfied itself that the arrangement for the handling of the milk supply was satisfactory. Now it is regarded as unsatisfactory and the city, through a corporation, is required to take over a treating-house that, according to Mr. Innes, “leaves nothing to be desired.” How will the transfer of the ownership of the treating-house produce the quantity of raw milk that the public of Wanganui demands?* What, is the connection between the ownership of the treating-house and the flow of milk from the cows of the district? If milk from the present treatinghouse is satisfactory how will the change of ownership improve matters? If raw milk cannot be supplied in sufficient quantities and pasteurised milk is being supplied in its place, it raises the presumption that the pasteurised milk would not be acceptable to the public and to the Department if it were delivered m a raw condition. Is this so? _ The claim that the corporation to be set up is to be a non-profit scheme is belied by the explanation provided by Mr. Innes. The scheme as outlined is for the consumers to provide the capital by paying more for the milk supply than is necessary if the scheme were run by private enterprise. If the surplus of income over outgo is to be applied to the reduction of the indebtedness to the Bank of New Zealand, then the surplus so applied is as much profit as i it were accumulated reserves of a private corporation. What is to be the capital of this new corporation? Who is to carry the burden of loss should any occur? It would obviously be unfair to ask that the consumers should bear such a loss when they are not being asked whether they approve of the scheme nor are they to provide the directors to purchase the milk. If the loss is to fall in equal parts upon consumers and producers and treatmenthouse in accordance with the ratio of their representation the Government should also be required to accept its share of the loss burden. Further, at what periods are these losses, if any, to b liquidated by calling upon those who shall stand in the place of guarantors? y Finally, what is the liability of the Wanganui City These are vital questions on which the public, as well as the members of the Wanganui City Council, is entitled to be informed.