DAIRY INDUSTRY

Gisborne Times, Volume LXI, Issue 9849, 30 October 1924, Page 5

DAIRY INDUSTRY

MR. LYSNAR AN OPPONENT,

ALLEGED DANGEROUS POAVERS

WELLINGTON, Oct. 29,

The House to-night went into committee on the Dairy Industry Amendment Rill as, reported from the Agricultural and' Pastoral Industries and Stock Committee, The Alinister for Agriculture explained that tho Bill, as introduced, validated the allotment of additional shares to shareholders in co-operative dairy companies, unless objection' had been made within three months of receiving notice of allotment and tliei supply of milk and cream had thereupon ceased. Tho committee has increased the time in which objection could be made and the supply discontinued to six months. That portion of the Bill which validates articles of association, obliging shareholders to supply to the; company in which they are interested has been altered to make it clear that it applies only to existing articles of association, hut it also makes it clear that default in case of such articles shall contiiunrto make a shareholder liable to a penalty. The committee, however, limited the validation to six months after the passing of the Bill land has laid it down definitely that such obligations may not lawfully ho included in future articles. The exemption of cooperative dairy companies from the law regarding restraint of trade is struck out.

Air. Lysnar objected to the measure because it contained what he. called dangerous powers and Air. Veitcli opposed it because it was subversive cf British' justice. Mr. iUeAliltan generally favored the Bill as amended by the committee. All*. Corrigan contended that the Bill gave protection to co-operative dairy companies rjeccssary to cnhble tliem to carry on. It imposed no hardship on anyone. Air. Lye said he had been asked by the dairy farmers to urge the deletion of sub-clause 2 of, clause 2, which validated certain articles of association of co-operative dairy companies concerning the supply of milk by shareholders.

Mr. A Listers complained that the Waikato dairy farmers, having got what they wanted in the Bill, had proceeded to pass resolutions against sub-clause 2 of clause 2 which the Taranaki factories urgently required. MY. Langstone said that, after careful investigation made by the: committee, the House would bo well advised to pass this necessary piece of legislation. The Hon. AV. Nosworthy said lie hoped to be able to introduce legislation which would put the position of co-operative dairy farmers on a sounder foundation. But he coukl not do it iiiis session. There.was not time. This Bill was as -much as lie could accomplish at present. In clause 2 Air AlcAlillan moved an amendment the effect of which would he that if a supplier permanently ceased, to supply for six mouths that would he sufficient notice of his objection to receive shares, The Minister said lie would resist the amendment.

The. amendment was negatived by 30 to 2G.

After further discussion the i>nl was reported from committee with amendments, read a third time and passed.—P.A.