GOVERNMENT IN BUSINESS

Hokitika Guardian, 8 September 1928, Page 1

GOVERNMENT IN BUSINESS

BY PROXY. THE FRUIT INDUSTRY. (Nineteen Twenty-Eight Committee). Though the incubus of “ Absolute Control ” has been removed from the dairy industry, the fruit and honey industries still are labouring under its malign influences and so losing opportunities for substantial expansion. These industries, of course, are not of the sanio coneorn to the Dominion as the dairy industry is, and consequently do not; attract the same attention from the general public; but they still arc of very considerable national importance and their development along sound economic lines should he encouraged in every way possible. That this has not been the case with the fruit industry, at any rate, during the recent past is demonstrated by the fact that the growers have acquired the habit of appealing to the Government each year for a guarantee against loss upon the shipments they send abroad •under the care and direction of the Control Board. The Government has been generous in this, respect—unduly generous some of its critics think—but the fruit industry seems to he- no more firmly established by its expenditure, than it was before this further impost was thrust upon the taxpayers. COMPETITION STIFLED.

At the beginning of the present year, before the season’s el-ops were available for market, a mercantile firm that, for hinny years had been closely associated with the fruit industry, communicated with the Department of Agriculture, suggesting that it should bo allowed to send fruit overseas on account of itself and some of its customers to.whom it had given assistance and to whom it was ready to give more. This firm had rendered invaluable service to the promoters ot the first overseas shipment of apples in 1910, and before and after that event had closely identified itself with the oi'chnrdists and their business. Notwithstanding the fact that the institution.of “ Absolute Control ” has deprived this firm of its export trade and of such securities as it may have held, it continues to finance many df the growers and to furnish them with supplies and information. Probably there are many cases however, in which it could not take this risk since the Finance Act of last year provides, in effect, that the claims of the Control- Board take priority to all other claims of whatever nature. LAW MADE MONOPOLY.

The legislation responsible for this state of affairs is embodied in the Fruit Control Act, 1924, and the Finance Act (No. 2) 1927, from which essential clauses may he quoted. “ For the purpose of securing any advances that may be made to the Board or to the owners of any fruit at the request of the Board,” a clause in the Fruit Control Act provides, “ tho Board shall, by virtue of this Act and without further authority have full power on behalf of the owners owners of any fruit to give security over such fruit and to executive all mortgages and other instruments of assurance in the same manner in all respects as if tho Board Were the legal owners of the fruit. “ Where any money is payable by the New Zealand Fruit Control Board, pursuant to the Fruit Control Act 1924 to ail owner of fruit in respect ol fruit disposed ol or to ho disposed dl by'the Board on account of that owner,” a clause in the Finance Act, to make assurance doubly sure, runs, “ the Board may pay the amount to the New Zealand Fruitgrowers’ Federation Limited, as agent for the owner, and tiie receipt of the Federation shall he sufficient discharge for the amount so paid by the Board.”

SQUELCHING COMPETITION. The effect of this legislation is to place the producers entirely in the hands of the Board and of its business partner, the New Zealand ]'ruitgioners’ Federation Limited, without any means of redress even if those bodies, or either of them, are guilty of flagrant neglect or gross lnnl-adininistra-tion. A high legal authority has given it as his opinion that the Hoard has statutory power to mortgage the limit of the owners, with or without, their consont, and, in combination with the New Zealand Fruitgrowers’ Federation, Limited, to deduct moneys due for goods supplied to owners in priority to moneys owing under registered lien. This means tlinft many of the growers are entirely at the mercy of the Board and its commercial ally and that while they are dependent upon tlie.se bodies for their finance and their supplies, they have not the advantage of the free competition which, proverbially, is the soul of progressive business. Surely what has proved to he good tor the dairy industry would prove equally gooci for the fruit industry and so give it an impetus that speedily would relieve it from dependence upon spoonfeeding by the State. Wellington, September sth., 1928.