CHEESE CRATES

Otago Daily Times, Issue 24418, 2 October 1940, Page 6

CHEESE CRATES

SUPPLIES OF TIMBER COSTS AND DELIVERY ARBITRARY OFFICIAL POLICY It has frequently been suggested that the North Island dairy farmer has a keener love for the guaranteed price paid by the Government for his produce than has his colleague in the south. The explanation is not far to seek. Lower overhead costs allow North Island factories to reserve a higher proportion of the gross return to the producer. It may be that for this disparity the South Island is substantially to blame, but that the Government is not above contributing to these higher costs is shown by the experience of two Southland dairy factories which find themselves penalised by the arbitrary instruction of the Timber Con roller that they must buy their cheese crate requirements in a higher market, accept lower quality, and draw their supplies from a centre more than 100 miles away, despite a valid contract with mills only 67 miles distant. The story is one that is all too familiar in these days. The Mataura and Pukerau dairy factory companies had contracted for cheese crate supplies with a Gatlins sawmill at a figure satisfactory to both parlies, and with delivery by the mill by road, permission for which had been obtained from the appropriate transport licensing authority. Notwithstanding that the current season's supplies were being drawn fx’om the Gatlins at a lower price in terms of a binding contract the Timber Controller advised the Pukerau factory that he had been •• instructed by the Minister of Supply to advise Southland cheese factories that this year’s supplies of cheese crates must be purchased from the same suppliers as last year provided that no increase in price was paid" The factory was ordered to renew its contract with the Tuatapere firm with which it dealt last year. The Pukerau Company endeavoured to explain that in an effort “to keep factory costs at. a minimum we are endeavouring to purchase all our requirements as cheaply as possible, and have made arrangements to have our cheese crate timber delivered into our factory by lorry at a saving on the price paid for timber railed and carted last year.” The reply concluded with an emphasis on the need for the lowest possible level of costs in the dairy industry. Promptly came the official reply:— “I have to advise you that you have flouted the instructions issued by the Minister of Supply, and through the timber controller he will be advised of your action. I. would recommend that your company do not take delivery of cheese crates except as instructed.” The, position apparently is that dairy factories must adhere to last season’s sources of timber, despite the fact that better quality can be obtained elsewhere at a lower price and with little more than half the haulage. In the case of the Mataura Dairy Company’s timber supplies the Dairy Produce Board added its weight to the instructions of the timber controller, and gave an undertaking that supplies would be drawn from a given Southland source and delivered by rail, regardless of the fact that a contract had already been entered into with a Gatlins mill which had full authority for the road delivery of, its supplies.

DAILY INTERCESSION

Holy, holy, holy is the Lord God, the Almighty, Who was, and Who is, and Who is to come. . . . Worthy art Thou, bur Lord and our God, to receive the glory and the honour and the power: for. Thou didst create all things, and because of Thy will they were and were created (Revelation iv: 8-11),

Our God, Who hast men and women in positions of leadership, we pray on behalf of those whose responsibilities are great and whose cares are crushing. Give them wisdom from above that they may plan aright: endue them with unfailing courage and ever-glowing hope. May they continually seek unto Thee and so be enlightened by Thy truth and sustained by Thy power: through Jesus Christ our Lord.