PULLING THE STRINGS

North Otago Times, Volume CVII, Issue 17748, 11 March 1927, Page 5

PULLING THE STRINGS

-Press Assticiation-

'(Australian and N.Z. Press Assoeiation.) »

- STEADYj ATTACK* ON DAIRY ) v GONTROLV " ■ • - " - '

1 ~ i CABLES MANIPUL'ATED BY I "MARKET AUTHORITY," AND "LEADING IMPORTER."

"(Gable—

— Copyrig'lit.)'

Received Thursday, 9.5 a.m. LONDON, March 9. The New Zealand Dairy Board's control policy has resulted in the biggest fiasco ever known in trad.ing circles, said a prominent market authority. It will have calastrophic consequences on New Zealandfs basic industry. What Mr Coates foretold in a cabled warning in November has now happened. If the New Zealand producers had acted on Mr Coates' advice instead of attacking him politically for pointing out the unwisdom, of the Board's policy they would have been now In a happier position. Tbe sooner producers face the crisis tbe sooner they wil amend their policy. It is estimated that the producers are likely to lose £2,000,000 this season and it will take two or three years to recover the position held here prior to control. New Zealand methods have antagonisedl the whole trade. The same authority added that the Australian Board drew up a scheme of co-operation with traders with whom they worked harmoniously, whereas New Zealand drew up her own academic scheme and imposed it upon the tradie regardless of its impracticability. The contrast of the two schemes is shown by the fact that Australian stocks were cleared as they arrived but New Zealand sold only 10,000 tons out of 60V.OO0 destined for the British market. At present 10,000 i tons are stored here, including portion of the December arrivals. The ' alarming thing is that with four of the best selling months gone New Zealand still has 85 per cent. of her stocks on hand and this will meet the keenest competition with the northern hemisphere's spring output, when prices will be very low. According to the same authority traders realised! that producers had the right to determine how the produce should be sold, but decided to j test the scheme, hoping that tbe defects would be remedied. Tbe Board promised tbat goodis would be cleared as arrived, but its promise had not been kept. Contrariwise, the Australian policy steadied the market and gained the jsympathy of importers. Also, the Australian Board' carefully estimate prices according to stock statistics market conditions and prospeets. The actions are based on reciproQal information between the Boardl aiid traders. The New Zealgnd Board adopts a dictatorial attitude, which the British trader will not stand, A leading importer asserts that Mr Coates in Lonodn was assured that the Board would meet the market's wishes, instead of which the 'policy had) been ^speculative. The impasse is due firstly to the Board's holding policy keeping the limits above the saies point; secondly the strong antagonism of wholesaters I and ref ailers to price 'fixation by the Board, which dictated to traders instead of co-operating with them. They gambled for a rise and were thus virtually guilty of the same speculation for which they formerly criticiscd traders. "Wholesalers andi retailers refrained from buying except when forced becanse fixed prices were unprofitahle. Similarly wholesalers refused to handte New Zealand butter because they paid the same price for large quantities as for a few boxes. Traders symIjathised with the Board's original intention to secure continuity of snpplies, but the policy was overdone and failed. Some producers are likely to he faced with substantial claims on account of over advances against supplies.