STATE CONTROL Urged By Committee

Hawke's Bay Herald-Tribune, Issue 87, 29 April 1937, Page 12

STATE CONTROL Urged By Committee

-PresB Association.)

TRADE JCHAOTIC Report Presented To Minister ASSIST1NG GROWERS

(By Telegraph-

w ±JL/ijXiN Gi'OJN, Tuis vay. State control of internai marketing of fruit and vegetables is the principiu reeomuieiidatioii made by the committee appointed by the Govemment to investigate the marketing of fruit anu vegetables dn the Dominion exclusive oi saies for export. The members or the committee were Messrs Aifreu Ooieman (chaiman), J, A. Oampbeu and J. L. Tbonias, and their report wab released for publication yesterday b} the Mimster of Industries and (Jom merce, Jdon, D. G. Builivaa. The committee recomniends the formal assumpuon of control of tne marketing of all horticulturai commodities by the Primary Produce Marketing Department, the appointment of a Director of Pruit Marketing, and the establishment of direct marketing authorities to direct aua control the marketing of any particuiar commodaty. A strict enforcement of the labour laws is recommended for the vegotable industry, excluding onioiis and potatoes, and it is also suggested that legislation be enacted providing for the identiiication of all Aeiafcics by means of thumb-print records. The grading of apples and pears, a limitation on * auctioneers ' commission charges as well as on retail profits, restriebions on the number of retail fruit barrows in the four main cities, and the provision of central fruit markets in several cities, ineluding Wellington, are among the recommendations. The committee expresses the opinion that the horticulturai industries as a whole are in a chaotic state. One salient feature of the fruit marketing industry in New Zealand obtruded itself repeatedly upon the committee from whatever branch that was for the time being the subjeet of examination. It constituted, apart from the matter of effecting actiial improvements in the quality of fruit; the outstanding problem to be solved by the committee. The facts constituting the problem referred to are these:— Growers are receiving too low prices for their produce, and are finding it increasingly diflicult to carry on. The balance-sheets of wholesale and retail distributors do not suggest that excessiive profits are being mado by these individuals. The public are paying too high a price for the fruit they consume. In attempting to improve the producers' position, the committee is of opinion that first consideration must be given to the questions of soand and honest grading and packing of goods iutended for sale, and orderly and regulated marketing as far as the latter is found to be practieable in dealing with the large number of emall or compara* tively small producers and having regard to the diversity of their activities. The process of improvement must, and of necessity, be more or less gradual and must follow education of the producers concerned and have their general co-operation. In the meantime the aim of the committee is to suggest that machinery for improved packing and marketing, suffiaiently specific and complete, be applied when considered desirable to any group of producers or to any particuiar commodity, and at the same time sufficiently wide to cover the whole of our fruit and vegetable products when that course becomes necessary. Any organisation, firrn or individual becoming responsible for the orderly marketing of a primary commodity must have control of that commodity, or, what is praetically the same thlng, authority to direct the producer or producers in respect of the prepaTation and marketing of that commodity. If this is admitted, and in justice to any marketing authority it cannot well be otherwise, control over the marketing of all horticulturai commodities must bo established. It is felt that elasticity of a control systeni that can be withheld or applied wholly or to any lesser degree desired, and made applicable generally or to any district or to any group of producers, or to any commodity as circiunstances dictate, and be vaxied to suit the peculiarities of the district or praducer concerned, would be preferable to a imiversal system applyIng equally to all producers of a particlar commodity without variation to meet the different conditions obtaining.

The committee is of opinion that sueh a control system conld be devised by the whole of our horticulturai industries being brought formally under the control of the Primary Products Marketing Department and it Tecommends to the Government that such action be taken. District or loeal marketing authorities would be equivalent to the local Control Board ptovided for under the Pruit Control Act, 1924, but with the following essential differences: Pruit under the Pruit Control Act is limited to apples and pears, whereas the marketing authorities now proposed could be made to cover any horticulturai product. While it hoped that the goodwill and support of producers would largely govern the establishment pf any marketing authority, the

committee is of opinion that, shOuld Lack of unanimity among any set of producers lead to delay in the setting-up of such an authority, summary powers to estahlish such an organisation should be given to the Marketing Department. While the committee is not recommending the immediate establishment oi marketing authorities in connection with the whole of our horticulturai activities, excepting in a few instances, machinery will exist whereby such authorities can be established at any time. The committee, in considering the problem, found that any solution, to be satisfactory, must achieve two apparently opposite results. It must increase the price paid to the grower, and simultaneously reduce the price paid by the consumer. In large cities there are far too many wholesalers, and a reduction in numbers and the establishment of up-to-date municipal central fruit markets, equipped with modern appliances, should enable wholesalers to operate on a lower selling commission. As matters stand, however, the committee does not think that any reduction in their charges, except the abolition of the receiving and delivery charge is possible as regards retailers. Their rate of profit on the bulk of New Zealand-grown fruit is excessive, but, nevertheless, ni individuals the majority cannot be said to be making large net profits, and a considerable number can barely make ends meet. The report recommends the following machinery measures: — I. The formal assumption of control of the marketing of all our horticulturai commodities by the PrimaTy Products Marketing Department and the extension or amplification of the Primary Products Marketing legislation where necessary to effect this end. 2.. The appointment by the Primary Products Marketing Department of an officer to be designated the Director of Pruit Marketing. 3. The setting up of a consultative committee comprising ftepresentatives of the New Zealand Fruitgrowers ' Pederation, the New Zealand Fruit Export Controi Board, the New Zealand Fruit and Produce Brokers' Federation and the Wellington Fruit and Vegetable Retailers ' Association. 4. The establishment of district marae ting authorities to direct and control the marketing of any particuiar commodity where and when and to the extent deemed desirable by the Marketing Department.