DAIRY CONTROL

Waikato Times, Volume 114, Issue 19125, 9 December 1933, Page 5

DAIRY CONTROL

AN AMENDING BILL. MORE EFFECTIVE CONTROL TRANSFER OF SUPPLIES. PROVISION FOR RESTRICTIONS. (Times’ Parliamentary Correspondent) WELLINGTON, Friday. Three important provisions designed more effectively to control the dairying Industry of New Zealand are contained ,ln the Dairy Industry Amendment Bill, which was Introduced by GovernorGeneral’s Message In the House of Representatives this afternoon, and road a second time .pro forma and referred to the Agricultural and Stock Committee. Under the Bill the Government Is empowered to Issue regulations autnorislng the registration of dairy-factory managers and the appointment of a registration board, restrict the transfer of supply from one factory to another during the currency of a season, and permit dairy companies to charge a commission on all assignments and orders.

Under the Bill the Government can make regulations governing the registration of persons competent to be employed as dairy-factory with power to set up a registration hoard for the purpose, and to give any person aggrieved by any decision ol the board in relation to registration the right of appeal to a magistrate and two assessors, one appointed by the appellant and one by the Minister of Agriculture or his nominee. Regulations requiring the registration of dairy-factory managers have been urged by the Dairy Produce Control Board and by the Dairy Factory Managers’ Association for the purpose of ensuring that only competent persons are employed as managers with a view to a general improvement in the quality of the dairy produce manufactured. Doubt, however, has been expressed as to whether sufficient power already exists to make regulations in this matter. Clauses have therefore been Inserted in the Bill removing any doubts as to the validity of the proposed regulations. A further clause protects persons already employed as dairy-factory managers by authorising their registration without further evidence of their qualifications.

Regulating Milk Supply. Provision is contained in the Bill for regulating the supply of milk or cream to dairy factories by restricting the transfer of supply from one dairy factory to another during the same season. In May last a regulation was made under the Act restricting the transfer of supply of milk or cream during the same manufacturing season, except with the consent of the owner of the factory to whom milk or cream was being supplied. The regulation was the subject of consideration by the Court of Appeal in October by originat- . ing summons, when the Court unanimously declared the regulation to be ultra vires and void. As It is considered that the unrestricted right of a supplier to transfer his supply militates against the effloient operation of the grading provisions of the regulations as to milk or cream, which are designed for the 60le purpose of improving the general quality. of the dairy produce manufactured, there is a clause in the Bill conferring .all necessary power to reimpose in the interests of the dairy industry the substance of the invalid (regulations, at the same time giving |a supplier.the right of appeal to a j magistrate from the operation of any [such regulation on the grounds of hardship. Restriction# In May. The restriction imposed in May last and subsequently, declared ultra vires did not apply during the month of June and July each year when the supplier had the right to make a selection of the company to which he Intended to supply his milk or cream for the ensuing season, nor did the restrictions apply in the following cases: (a) Where the milk or cream previously supplied was derived from a substantially different herd; (b) where during the previous supply the dairy-farm from which the milk or cream was derived was in the possession of a different person from the person subsequently supplying milk or cream from that dairy; (c) where the company ceased to purchase milk or cream from the farm dairy by reason of ceasing to carry on the business of purchasing milk or oream or refused to continue to purchase milk or cream from that dairy; (d) where milk or cream was being supplied to two separate dairy companies in stated quantities or proportions but only so far as those companies were concerned; (e) where a person charged with an offence proved that he was not aware that at any time previously milk or cream had been supplied to any other company. Authority is given to issue regulations to enable dairy companies to charge a commission not exceeding 2£ per cent on all assignments or orders by a supplier on his milk or cream cheques. For some time past legislative- authority has been sought by the industry for making a charge for the execution of orders given by suppliers on their milk or cream oheques. It has been represented that the handling of such orders entails considerable work for dairy companies, especially where some suppliers issue orders five or six deep against moneys due to such suppliers by the company.

Priority of Orders. In such cases the orders have to ho treated in priority of date and if on a percentage basis, each order involves another calculation. Several additional statements have to he prepared and forwarded to the interested parties again. Furthermore, individual suppliers. hy making full use of their privileges under orders create more work for dairy companies in executing orders than five others. The purpose of the Bill therefore is to give power to make regulations authorising dairy companies to charge a commission of not more than 2* per rent on all such orders or other assignments. In explaining the Bill the Minister of Agriculture, the Hon. C. E. Macinil-

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lan, said that dairy-factory managers had been asking for years to be allowed to register themselves as an organisation. The right to charge a commission had also been requested from time to time by the National Dairy Association. ■Mr. E. J. Howard (Labour —Christchurch South): And resisted by others.

Certain Amount of Resistance. The Minister: I do not know how the honourable member can get anything in this or the next world without a certain amount of resistance from 6omc quarter or other. Mr. P. M-ascr (Labour —Wellington Central): Are you making regulations for the next world? The Minister: The suggestion has been made that regulations should not be issued unless there Is unanimity. Everyone knows that is impossible. The dairy companies and executives have all "asked for something to allow them to charge a commission on orders. Mr. Howard: All companies? The Minister: Well the majority. I think 1 am safe in saying the executives of all companies. Mr. C. L. Carr (Labour —Timaru) said it seemed that the Government was now attempting to legislate for something to which strong objections were taken and upheld on appeal. It was true they had been upheld on technical grounds. Mr. F. Lye (Government —Waikato) asked if it,'were the intention of the Minister to refer the- Bill to the Agricultural, Stock and Pastoral Committee. Tiie Minister: Yes.

Mr. Lye: I am glad of that assurance. It. is an important Bill, and there is a good deal of feeling about it in the country.

The Bill was then read a seeond time pro forma and referred to the Agricultural and Slock Committee.