WELLINGTON NEWS

Hokitika Guardian, 22 June 1926, Page 4

WELLINGTON NEWS

COMPANY CONTROL

(Special to “ Guardian.”)

WELLINGTON, .June 18.

'Pile. New Zealand Dairy Produce Control Board is now advertising that absolute control will come into operation as from September Ist. In the meanwhile both the Government and the Board have been notified by several factories that they will not submit to control, just as the bus proprietors refused to be bound by the lius regulations. The latter have definitely refused to charge the 2d more than the tram fare, and so far nothing bus happened to them, and probably nothing will. 1L is of course a different matter in respect to control of dairy produce, nevertheless unless the proposed legislation modifies' the powers of the Hoard to exercise control. there is certain to be considerable litigation. So far there lias been no indication as to the nature ol the proposed amendment of the Act. beyond the fact that the election of the hoard is to he on the Ward system and on a tonnage basis. It is said that the Labour Party will support the Government on the* control legislation, which is very probable, as the policy of compulsory control accords with the basic principle ol Labour’s political programme, that is the socialisation of the means of production, distribution and exchange. The Dairy Control Board will in effect socialise the distribution of dairy produce it it puts compulsory control into operation. Apart from the amendments to the Act tiroposed by the Government, Mr Vcitcli, i lie member for Wanganui, is to introduce a Bill dealing with absolute control. Mr Vcitcli. as is well known, is opposed to compulsory control, and bis Bill will receive considerable support, and the debate should prove very interesting. In the meanwhile, it is to be noted that according to the report received bv cable by the Dairy Control Board the London blitter market is reported to be quietly firm, after considerable activity, mostly speculative buying. As one of the reasons for exercising eomiHilsory control it was stated Unit it was necessary to eliminate .speculation from the market, and a case was cited ol a linn buying New Zealand butter at loSs and clearing about a quarter of a million sterling. It was also contended Unit speculators operated with the object of breaking the market. Here we see speculation being carried on under the nose ol the London Agency and no effort is being made to put an end to it. It must be obvious to everyone that the Board or any other bodv must be powerless to prevent speculation, which is a feature of every market, even in thcmost highly organised, including the wheat market. The speculator, the 1.0. b. buyer and the c.i.f. buyer have all got their uses, and they would never be allowed to exist where they have no use. THREE MILLION BOUNDS, lu the course of liis remarks the other dav at Hastings Mr E. 0. Brash, President of the New Zealand Growers' Association stated that the freight charges paid to the Shipping Companies by the three New Zealand Expert Boards —meat, dairy produce and fruit—amounted to tbji'oc million pounds sterling. The obvious inference of this .statement i-- discredit to the shipping i oinpanies, to make it appear that they were fattening on tin* community, and it is a wonder he did not refer l» Lord 1 neheape, the great shipping magnate, in terms uncomplimentary. For the three million sterling received by the shipping companies they render very excellent service. Adequate tonnage of a suitable character is provided for the ferriage of our perishable produce, the vessels have almost invariably to visil a number of small ports and even roadsteads to pick up cargo, and generally they deliver the goods in reasonably good condition at Hie port of destination. Furthermore, the cost of operating shipping is still very high, made worse by incessant strikes and other labour difficulties, i Nevertheless, freight can be reduced.

and no doubt would lie reduced if the ships could load ami discharge at a restricted number of ports. If the overseas vessels had to load and discharge at say. two ports in the Xorth r.slaml and a similar number in the South, there would lie sound reason for demanding a reduction in freight rates, but the smaller ports and roadsteads would rebel against such a policy and the politicians know it. Freights are high hut they appear to he. warranted by the circumstances.