WELLINGTON NOTES.

Hokitika Guardian, 18 February 1925, Page 4

WELLINGTON NOTES.

ABSOLUTE control of dairying

(Special to “Guardi",n”.)

WELLINGTON, February lfi

The question of the Dairy Produce Control Hoard taking absolute control of the butter exported from New Zealand until finally sold is commanding a good deal of attention in Wellington. The suggestion of the Overseas Delegation that the Hoard should undertake the responsibility ol all sales has keen condemned hy the two leading Wellington newspapers, and there have I seen quite a number of “ letters to the Editor,” dealing witli the subject. One correspondent. “Look Before \on Leap.” points out that the system of the factories selecting their own agents, making their own terms in New Zealand and letting the agents come to the meetings of the directors and compete with one another for the output has been in operation about To years. This correspondent says: “ft will be a big loss to all those fanners who voted for control if a handful of orators persuade the dairy farmers into agreeing with control. A false move would bring trouble upon the present Government, upset the balance of power against the present Government, am! probably bring also about a repaid of the Act. One of the worst and most disastrous things for the small dairv farmer is a very small progressive pay-out. if the average progressive pay-out goes below Is 3d per P, for butter fat. Under the present Toolev Street system when the payout is low the factories get 100 per cent of the market value, ami sometimes over, which is paid off when the markets improve. In this way many small dairy farmers have been kept from bankruptcy. Very often dairy factory directors have sold portions of the output so as to play safe and save the suppliers the worry of the uncertainity of the market.” Apparently, according to this correspondent, there are three systems of marketing N.Z. dairy produce practised in London at present: (1) The attempted regulation of prices by a big N.Z. co-operative dairv company; (2) The system of selling'past Tooley Street, as adopted hy the N.Z. Producers’ Marketing Association ; and (3) The Tooley Street system, which according to the promise niven Itv the promoters of the Bill was

not to lie dsiturbed. 'Look Before Bm Leap ” says very truly, “ It will not be ion g before tbe Control Board will realise that the future of the butter industry depends upon 2d to 30 per cent more butter fat per row and 10 to Id per cent lower prices to keep sales up.” The world has commenced to over supply butter, and N.Z. this season is producing a considerable increase. Australia has increased her output and in December last the exports totalled 10,000 tons as compared with 2000 tons in December 1923. What is contended is that it is futile to endeavour to stabilise prices at a high level bv artificial means in the face of i iUTGiTsiii££ prod notion. CLASS LEGISLATION.

Another correspondent. “ Puzzled,” says: “.These Control Boards are all nothing more than class legislation with party politics at the back of them. The Dairy Control and all the other boards which have been set up cannot function without the consent ot the -Minister of Agriculture. Ihe Dairy Control Board cannot institute the policy of absolute control without the consent of the -Minister, and (.here is little to he gained by fulminating against the Boavi 1. The power to exercise control with the consent of the Minister is part of the Act, and should the present Government veto the proposal ol absolute control there is no guarantee that another Government will not sanction it, and another Government will he in office next year.” The class character of the legislation setting up Control Boards is disturbing many people, more especially as Dm Reformers them-.clvc:; realise that with Mr Massey out of the way the ship is without a rudder and the party without all effective leader and one who would command confidence. Furthermore, the accumulated sins ol the Government are now very great, and the Bread Tax, which is certain to become effective next month, will cause wry great resentment. The chances ol Reform continuing in power are daily becoming hcaiitil ill 1 v less. Imt level headed Reformers would not mind this it it were not for the certainity that the Ctovermueiit will pass into the hands of Labour. With all the disastrous precedents provided by the Massey Government the Labour .Party could pass as null'll class legislation as it pleases with complete justification based upon precedent. FOR ABSOLUTE CONTROL.

.Mr P. J. Small, of Kairanga, Palmerston North, says: “As I see the situation, the policy ol the Board, in view of its announcement, "ill evolve on sound lines, and will inflict no hardship whatsoever upon the legitimate service-rendering commercial houses. The only man who is concerned to prevent the reforms coming that are duo to come, is the speculative buyer aiul seller of N.%. produce. This is the game that this man plays. He buys parcels of N.Z. produce iu the Dominion on an f.o.b. basis and sends it Home. When the seasonal heavy supplies of X.Z. produce sent Home on consignment are due to arrive, he breaks the market price by offering his own produce at lower figures. Ihe consigning agents are therefore forced to follow the market down until we sec results such as occurred recently, when the market fell from -Oos at the end of December to 100 s at the end of January.” According to: .Mr Small, these speculators must he very foolish people, if they sot out to break tie market against themselves. Surely the speculator buys to make a profit, and the larger the profit the better to.’him—yet. according to Hr Small, li s sole object of life is to break the market. This is contrary to the operations

of the speculators in the wool, wheat, nvfnt and ifcallow, metal and other 'markets. If the heavy seasonal consignments are likely to make good prices wo may lie sure the speculator would be only too glad to stand in for his cut. M.r Small’s argument is regarded as a hit watery.