DAIRY PRODUCE

Manawatu Herald, Volume XLVIII, Issue 3640, 19 May 1927, Page 4

DAIRY PRODUCE

THE CONTROL QUESTION.

PItIME MINISTER’S ATTITUDE

REPLY TO LABOUR LEADER

DARGAVILLE, May 15

The burning subject of dairy produce control was referred to by the Prime Minister in his speech to-night. “I have ah'eady issued two statements to the country bearing on the subject of dairy control,” said Mr Coates. “These I thought were suihciently explicit in regard to my 'attitude and action concerning the matter during my visit to London in the latter part of last year. Notwithstanding these statements a campaign of misrepresentation regarding myself and the Government is being persistently carried on. _ ~T “The Leader of the Opposition (Mr Holland) in the speeches which he has recently been making repeats, parrotlike, certain information gained second hand, I presume, from certain sources. On this information he places an interpretation which in his opinion will best suit his own political cause. His object in so doing is perfectly plain to every onlooker, and that is to discredit anyself in the eyes of the farming community. , , , , Mr Holland asks the country to believe that the Prime Minister has never been honest in the part lie took or m the votes he recorded in connection with the dairy produce legislation for which he was responsible to Parliament, and it would appear that ho bases his conclusions almost solely upon the appointment of Mr Paterson as a nidfhber of the London Agency of the New Zealand Dairy Produce Board, From Mr Holland’s utterances he seems to be iar better posted in the doings of 'Mr Paterson and his motives than I have ever been aware of I hold no brief for Mr Paterson, but I wish to be fair to him. I do not believe that Mr Paterson would for one moment lend himself to any ulterior motive. He stated his reasons for coming to his conclusions regarding the advisability of not pursuing at the time the policy or price fixation which had been decided by the board. To assert that I was m league with Mr Paterson or lie with mo is untrue and unjust. SERIOUS POSITION. “My own connecti6n with the matter arose only after I became convinced of the serious position that the New Zealand dairy producer might be placed in by any move likely to place his product a# a disadvantage as compared with similar products in the Home market. Here may I state that my conclusions were arrived at after information had come into my possession from many reliable sources. ‘ There are those who say that Mr Paterson’s cable to the board was sent with my approval. Such a statement is incorrect. The cable referred to was not sent with my approval though I knew of it. The telegram sent by myself to the Government of New Zealand expressed by far the bulk of the opinions which, as I have already said, had been conveyed to me from the fact that at the time the board assumed control a very large quantity of butter was.held in store in London by dairy companies. This was butter which had probably missed the season and was being held for higher prices and likely to come on to the market at ’any time. “Secondly, there was the undeniable fact that definite hostility existed amongst the trade, and indeed had even spread to retailers and consumers. I challenge any person with a knowledge of the position to controvert the conclusions at, which I arrived. “Having then formed my views, and in spite of possible misinterpretation on the part of producers,” continued Mr Coates, “I decided lo acquaint the Government in the Dominion of the position as I saw it, especially as 1 had, like most people, a keen appreciation of the extent to which the Dominion’s prosperity is linked up with the dairy industry. I was also desirous that the representatives of the producers in the Dominion should not without fuller consideration follow a course which ample and reliable evidence had shown was full of risk to the position of our dairy produce on the Home market. REMOVING WRONG IMPRESSION. “It has been stated that I was hostile to the board’s manager in London. To remove any such wrong impression I need only quote the following extract from the verbatim report of my conference with tire members of the board and representatives of the trade in London on the November 8 last. This is what I said: “ ‘J. am well acquainted with the New Zealand Dairy Co-operative Association in New Zealand, its personnel and directors. So far as the directors are concerned, and I think the suppliers also, they have absolute confidence in their representative in London ; there is- no doubt about that. They have absolute and complete confidence in their London manager—that is, Mr Wright.’ “I should also like to quote some of my remarks regarding co-operative marketing, concerning which I notice some of my opponents have been industriously misrepresenting me. These are some of the views I expressed at the meeting to which I have already referred: ‘First of all, I want to tell the delegation that so far as control is concerned, and as it affects New Zealand, it has come and has come to stay. The next thing is: How can we best overcome any difficulty or misunderstanding that exists here in connection with the supply of New Zealand butter on to the market? My whole object is to see if we cannot get down to the points of this agreement and ascertain whether it is possible to overcome these difficulties. So long as the farmer desired to combine in order to handle his produce up to a certain point it had to be taken for granted and without argument that he would do so. It must be 'remembered that there is no harder working section of tho community than the dairy farmers. The great bulk of export from New Zealand was from cooperative companies produced by cooperative effort. I want to say that the Government in no sense controlled or interfered with the board. The Government had not como into it. The producer asked for certain legislation; Parliament agreed to that legislation by. a large majority in each case. That was not to say, however, that there were no opponents to the board or to the idea of the board. I am perfectly convinced that the legislation will stand in some form or other, the idea being just as I have already stated—namely, in connection with tho handling of produce up to some point. - BOARD’S DIFFICULTY. “I have never suggested that pricefixation was the cause of lower prices. The difficulty the hoard found itself up against in London was undoubtedly the large quantity of butter found in store there, and the fact that the trade in England knew the position thoroughly well, being tlni6 in a. position to ignore the board’s offerings if they thought fit. In addition to that it was quite certain there was a very genuine opposition to tho policy of price fixation. “I have been much interested in one new feature of the speeches recently delivered by tho Leader of the Opposition,” said the Prime Minister, “and that is his sudden professed anxiety for the welfare of the primary producers. In this connection may. I ask him one question: ‘Why did he not display the same concern some 18 months ago in connection with tho transport of the farmers’ produce to the Home markets?’ On that occa-

when we conferred together I was keenly desirous as he was that the board's sion, if I remember rightly, Mr Holland was not so anxious as to the effect of the disastrous shipping strike on the dairy producer of this country. 1. can say deliberately to-day that one of the main causes of so much of our butter accumulation in store in London last year was a direct result of the shipping strike, which led to a complete disorganisation of vital transport arrangements. In addition there was the great coal strike at Home which had a very direct bearing on the demand for 'our dairy produce. Again, if my memory serves me correctly, Mr Holland said nothing and did nothing that contributed to a reasonable attitude being pursued in that connection, nor do I remember any public repudiation by him of the notorious Air Cook, whom we know now was closely in touch with Moscow throughout that lamentable industrial crisis. NEED FOR CLEAR THOUGHT. “In my opinion there never at any time has - been greater need for clear thought and careful action in the light of circumstances surrounding the dairy industry. I suggest that our citizens, whether in country or town, should pause very carefully before seriously listening to the proposals?bf the Labour Party which Mr Holland enunciates in the direction of Government controPof the handling and distribution of foodstuffs. Such proposals are closely related to the already notorious planks of the Socialist platform—namely, the socialisation of the means of production, distribution, and exchange—a policy in my judgment fraught with danger, particularly to an agricultural and pastoral country like New Zealand.” Mr Coates concluded by saying that he desired to repeat wliat he had already told the country—namely: “That the opposition to the policy of minimum price fixation was overwhelming, not merely by traders but by consumers. There was also in addition imminent danger of losing that friendly co-opera-tion which was so essential for the successful marketing of our produce. I feel sure that even Mr Grounds, who was staying at the same hotel in London as myself, will admit that on all occasions dairy producers, and that my counsel was'always at his disposal whenever he o Derations in London should be successful, and in the best interests of our sought it. As one who has followed farming all his life, in which dairy farming has played no small part, I think my fellow-producers will do me the justice of believing that both as Prime Minister and as one of themselves I am actuated only by a conscientious desire to enhance t’he welfare of the farmer and all other sections of the people. “1 take this opporunity of adding, concluded Mr Coates, “that in the event of the New Zealand Dairy Produce Export Control Act again coming before Parliament, I am of the opinion that the word ‘control’ should be altere 1. This term creates an impression that tends to prejudice our • products in certain markets. I suggest as an alternative that a more suitable term would be the New Zealand Dairy Producers’ Co-operative Marketing Board, or some other more appropriate designation.”