MILK SUPPLY.

Press, Volume LXIII, Issue 19177, 7 December 1927, Page 12

MILK SUPPLY.

AN EXPERT'S REPORT.

ESTIMATED COST, £IIO,OOO. The report of Mr R. E. Herron, General Manager of the Wellington City Council's Milk Department, made on behalf of the City Council on a Municipal milk supply for Christchurch, yesterday was released for publication. It is entitled, "The Problem of a Pure Milk Supply for Christchurch."

Mr Herron submits "that whatever vested interests are at stake that same should not be allowed to stand in the way of carrying out a reform so highly important as the reform now under consideration, especially when the health and welfare of the community are at stake, and accordingly I have to express the hope that a municipal milk department will be successfully established in your City in the very near future." Tho Problem Stated. The matter for the Council's consideration, he goes on, show the very desirable reform in the milk supply system of Christchurch could be brought about whereby:— (a) Consumers may be assured of tho quality and purity of the milk supply without extra cost to them. (b) Producers shall obtain due and proper encouragement in producing and supplying milk of the necessary high standard of quality, and (c) The consumptive domand of milk shall be increased to the benefit both of the health of the consumers and to tho business of the producers. A Monopoly Proposed. The easiest and most practical way to achieve the result desired is for the Council to assume the responsibility for the milk supply of the City by obtaining the requisite monopoly of its supply and distribution under statutory authority. He suggests that the Bill to be submitted to Parliament should provide as follows:

! (a) For the promotion of a pro- | ducerfr' association whose membership at the outset shall be limited to the present producers and who shall be necessary to supply the milk requirements of .the City based upon the collective quantity of milk available at the lowest point of seasonal production, such membership to be enlarged from time to time at the instigation of the Council, as additional supplies of milk become necessary for the City. (b) For the setting up of a "price fixation tribunal" for the determination from time to time of the prices which shall be payable for the milk to be supplied, also for fixing the qualitative and other conditions of supply, such tribunal to consist of an equal number of representatives of the producers' association and of the Council, with provision for the appointment of an independent arbitrator, who shall bo either a Judge of the Supreme Court or a Magistrate, (c) For the promotion of a "compensation board" for the determination of the amount of compensation which shall be payable to the existing vendors for the loss of their business and who shall automatically give up pending milk when the Council shall assume the control of the milk supply, (d) For the licensing by the Council of any existing producer-vendors who are at present producing milk on small holdings of land and vending it in the city themselves, and where the giving up of vending would bring upon them hardship by the limitation of their future work, such Licensees to become the agents of the Council for the distribution of milk in "zones" to be allotted to them in the City, the remuneration for their services to be a price per gallon to be fixed by the Council for the distribution of the milk, having regard to the distance to be travelled in serving the relative zones. (e) For the institution of the Tokens system of payments for all milk supplied, thereby eliminating bad debts in trading and minimising accounting expenses.

(f) For the establishment of a motor milk collection- service by the Council, whereby all milk required for the City shall be collected at farm-gates and brought expeditiously into the Council's treating depot or depots. (g) For all the remaining matters which may be found necessary for the protection of the Council's monopoly and not otherwise provided for herein (nor provided for in the Municipal Corporations Act), including the right to fix the selling prices of milk and cream. Financial Aspect. The amount of capital likely to be required to establish a Municipal Milk Department for Christchurch (exclusive of the money required to meet the compensation found payable to existing vendors) is roughly estimaficl by Mr Herron at £IIO,OOO, made up as follows: £ Land .. ..Say 8,000 Buildings, chilling rooms, etc j' • • .. Say 40,000 Trucks for the collection • of milk .. " 5,000 Treating and bottling plant and equipment " 25,000 Distributing plant and

equipment .. " 25,000 Sundries ... ... „ 2,000 Contingencies .. " 5,000 The aforesaid amount makes due allowance for the most modern and efficient plant units procurable, some of which are very costly. Probable Price of Miiir,

Basing the price payable to producers for milk collected at their farm gates at Is a gallon all the year round, and working expenses at a slightly higher rate than ruled in Wellington for the last trading year, but as ascertained three years ago by the Costing Committee, Mr Herron considers that milk should be sold all the year round retail at 6d a quart, and bulk milk to hotels, etc., at 16d a gallon. Mr Herron concludes his . report as follows:

I respectfully submit that the milk supply problem of Wellington haß been successfully solved by the establishment of a Municipal Milk Department, and I have no hesitation in stating that should your Council decide to adopt a similar system their venture should also prove successful, provided, of course that you are well and sufficiently advised concerning your project and the department is well managed.