PROPOSED DAIRY POOL.

Waikato Times, Volume 97, Issue 15271, 22 June 1923, Page 6

PROPOSED DAIRY POOL.

PROVISIONS OF THE BILL. \ Owing to the apparent ignorance in some quarters of the working of. the proposed Dairy' Produce Export Control Bill, the Dairy Farmers’ Union is issuing the following explanatory notes on the Bill: —

The Dairy Produce Export Control Bill, although compared with its importance one of the smallest and simplest legislative measures, appears to be one of the most misunderstood Bills that Parliament ever introduced in the House. Yet we have in the Statute Book and in active operation for over i 2 months a measure which is drafted on almost identical l ines —viz., the “Meat Export Control Act.” This Act, similar to the Dairy Produce Export Control Bill, provides for an export license, a limited control and an absolute control, and yet the meat trade has not experienced any of the revolutionary' changes or suffered from the imaginary and fantastic calamities as some of the opponents of the Dairy Produce Bill would have us believe will happen should the latter ever reach the Statute Book. In spite of this knowledge the bogies of finance and a dairy pool are repeatedly held up to the dairy farmers although the fact is apparent to everyone that neither. of these questions have so far troubled the meat producers. • The Dairy Farmers’ Union at hundreds of branch meetings and conferences fully explained the intended working of the Bill, and although some of its clauses were severely criticised and modifications submitted to the Minister in charge of the Bill, the fundamental principles of the Bill were never questioned when once understood. At the same time, papers and explanatory notes on the Bill were sent to all members of the union, and it can be fairly claimed that wherever the Dalry r Farmers’ Union is in existence the Bill is thoroughly understood. . The most common error made, of course, is the belief that as soon as the Bill comes in force the whole of the Dominion’s dairy produce will be pooled and come under the absolute control of .the Dairy Produce Control Board. The reason for this belief can, no doubt, partly be found in the dairypool scheme proposed by the National Dairy Association in 1921, and by statements made in the House last session by members who arrived at the same mistaken conclusions. It does not seem to occur to these persons that in order to carry out such a gigantic undertaking the Board would' be called Upon to deal with something like £16,000,000 worth- of produce, including all the complicated Intricacies of finance, shipping, marketing, etc., without giving the Board any financial means or backing, whatsoever, except the value of the produce itself. This fact In itself should be sufficient to show the absurdity of such a conclusion without even taking as a parallel the working o.f the Meat Export Control Bill. Such a radical and far-reaching step is not in. the least essential to the efficacious working of the Bill. The three methods of control provided are: (1) Export license; (2) partial control; (3) absolute control. As soon as the Dairy Produce Control Bill becomes law and a board has been set up, every exporter of dairyproduce will have to apply for a “license to export.” Such application will no doubt be granted in all cases, and therefore no dislocation of our present ways and means, of disposal and marketing need be feared. Such license, however, is subject to immediate and unconditional revokation. This power of revocation makes it possible for the board to enforce partial or absolute control. “Partial control’’ takes place where, f.i., a license to export is granted “conditionally” and shipments are made by direction, or under supervision of the Board.' A board invested with such powers could, f.i., prevent that one-flflh of the whole of our season’s produce, would leave New Zealand ports in a little more than a week, as it happened less than three months ago. Or, if it allowed the export to take place, it could have made such conditions that wo.uld have , avoided the whole of this produce being dumped on the London market, and so no doubt prevented the total collapse which followed. “Absolute control," similar to partial control, will only be exercised In Isolated cases. It Is the natural sequence to partial control, and will only be made use- of. where partial control did not prove effective. It must be remembered that the ■ only penalties provided for in the Bill for noncompliance with the Control Board’s regulations are these three methods of control, which are essential to the’working of the Bill. Should the Board, f.i., find it necessary-to revoke an agent’s license to export, the dairy factory, on whose account the agent is operating might find itself in financial and other difficulties if the Board had not the necessary power to assume absolute control of such factories’ produce and take-charge of the shipping and selling thereof. The Bill certainly makes no provision for the necessary financial machinery to take over the whole of New Zealand’s dairy produce, because such is neither intended nor necessary. The Dairy Produce Control Board, if true to the interests of the. dairy industry, will represent the highest form of co-operation and will be able to exercise a beneficial influence in hundreds of ways, without abusing its powers and in any way. detrimentallyinterfering with the present working of the dairy industry. In conclusion, it may be pointed out that .the members of the Dairy Farmers’ Union are almost unanimously In favour of the Bill, provided—(l) That the maximum levy authorised by the Bill is reduced by 50 per cent, in order to guard against extravagance; (2) that the Bill makes provision for an annual conference between the Control Board and the dairy farmers, where the former will give an account of its stewardship; (3) proper safeguards for the exemption clauses. With these .modifications the union feels that the Dairy Produce Export Control Bill will be of immense benefit not only to the individual dairy farmer, but to the dairy industry of New Zealand as a whole.