DAIRY PRODUCE CONTROL

Hokitika Guardian, 12 April 1927, Page 1

DAIRY PRODUCE CONTROL

REPLY TO AIR GROUNDS,

ST.yTEAIE.NT BY PRIME MINISTER. WELLINGTON, April 10. “Aly attention lias been drawn to a statement by Air W. Grounds, chairman of the New Zealand Dairy Produce Rxport Board, in tho last issue of the ‘Dairv Produce Exporter,’ the official organ of the Board,” said the Hon J. G. Coates to-day. “In the course of his remarks Air Grounds says regarding the position as lie found il on his arrival in England in September last: ‘For anything thus far recorded wo should have have no cause for complaint against Alt' Coates or his Government, hut when subsequent experiences proved that Air Paterson, who is the Government representative upon the agency, was engaged in this propaganda against the hoard, and openly proclaimed his opposition to its policy, manager and general constitution, the position assumed a different complexion. These facts were represented to Air Coates in London, hut holding the same views and having accepted Mr Paterson’s guidance without any proper investigation, it was readily foreseen that he could not jettison his guide.’ “The opinion expressed in the last sentence hy Air Grounds is wholly inaccurate So far from ‘accepting Afr Palerson’s guidance without, any proper investigation,’ T arrived in London in October with a mind openly sympathetic with the hoard and imbued with an earnest desire that the board’s operations should tie in every way successful. I was in no way guided hy Air Paterson, nor hy the interests opposed to the hoard’s policy. Tf T hud been captured hy those interests my views might naturally tie challenged. hut what impressed me as to the seriousness of the position was that wherever T went among the consumers. retail salesmen, distributors, multiple shuns, or financial firms, the hostility to price fixation was universal and was bv no means confined to those who might lie regarded as disgruntled speculators. “Thus when I became aware from many reliable sources, apart from Air Paterson altogether, that the policy of price fixation was giving rise to much antagonism and opposition, not only amongst, trade circles hut also among the consuming public, and was also

etuising anxiety in financial circles. T had to consider whether T should take no action in the matter and leave the board to pursue its expressed policy. After careful deliberation I deemed it to lie my duty to transmit the information to New Zealand, especially having regard to the extent to which Hie Dominion’s prosperity is hound up with the dairv industry. T had opportunities. also, of conferring, not only with Air Grounds and the members < '' ihLondon agency (including Air Paterson!. hut with representatives oF those directly interested in the dairy produce trade in Ilie British market. “Tn communicating the views that T had formed to New Zealand, T was actuated solely hy a desire to ensure that tlie representatives of the producers in the Dominion should not. wil liont full consideration, pursue a course which the evidence showed was fraught with danger tn our dairy produce on the Dome market. T had no desire to dictate to the hoard, nor had T any power so to do. Parliament had already vested full responsibility in the hoard, and the Government could not- and would not attempt lo exercise direction over the hoard. Afv views were offered merely in an advisory spirit. “T made il perfectly plain in London that the co-operative policy of the New Zealand producers in the marketing of their produce was definitely settled and would eotitinue. This statement was accepted and the trade representatives, in their turn, expressed their desire to work in the interests of the dairy industry in the Dominion. I indicated, however, in my cablegram that Hie opposition to minimum price-fixing was overwhelming, not merely by traders; but by consumers. T could forseo the imminent dnn-

ger (lint existed of losing flip friendly co-operation which is so essential for ilie successful marketing of our produce. and T emphasised tins in my lelegram. There is no necessity to refer specially to the narration of events sot out in Mr Grounds’ statement during the period of his visit to Tendon. 1 merely remark that I was very pleased to see him many times and have the opportunity of diseasing the position with him. On these occasions. T pointed out that it seemed to me unwise to ignore the widespread hostility to price-fixing and stressed the importance of moving cautiously and tactfully at the inception of the hoard’s policy in order to retain the goodwill and friendship of our customers at Home. Thai my advice was sound at that time T think subsequent events have dcmonstruled Tt is a matter for regret that Mr Grounds has published remarks in which he does me a great injustice by making an incorrect statement. However, T think that my record in ihe past proves pretty conclusively that my sympathies have always hccn with my fellow-producers and that T am not likely now. in my opinion as Prime Minister, to deviate from that attitude in so important a matter. T deprecate bringing personalities into the discussion, and it seems that Mr Grounds’ differences with Mr Paterson have rather clouded his judgment and caused ' him to adopt a course which certainly will not tend to encourage unity amongst our producers.