DAIRY PRODUCE.

Timaru Herald, Volume CXXIII, 25 March 1926, Page 9

DAIRY PRODUCE.

STATEMENT BY CONTROL BOARD. By Telegraph—Press Association. ' WELLINGTON, March 23. Interviewed to-day, Mr W. Grounds, chairman of the Dairy Control Boaid, said that several incorrect reports of statements regarding the method °f finance to be pursued under the Board s scheme of control having been widely published and used as a basis of cr i tlc i ,s ™ of the Dairy Board’s policy, he desned to give the following outline of ttie general procedure to be adopted. (1) The whole of the present channels of distribution are to be used. . (2) Allocations of produce are being made to different importing houses, based awn the average quantity handed by each during the past three years (3) —The finance of this produce will be arranged by letters of credit, which will be established in the name of the Board in New Zealand by each importer to an amount to coyer the allocations made in exactly the same method as now pursued. , (4) —These advances will be immediately available for advances to factories at their local branch of the bank, just as at present, exchanges being handled by each bank as at present. (5) Advances will be made available against store warrants just as at piesent. . , ~ (6) —Advances will he made on tlie present percentage hash of estimated Va (7)tlThe more stablised position which will be attained by the Board’s policy of regulations of despatch should make it easier to accurately estimate the final realisations. ~ (83 Sale results will be cabled from London frequently, and regularly, so that further progress or final payments may bo made to companies ae soon as possible after sales have been made. It will therefore be seen that'no new scheme of finance is contemplated, but that'the business will he conducted. on similar lines to our present consignment business. As the system proposed exactly follows the lines so long associated with the business, hanking authorities with whom the matter has been discussed approve of the procedure outlined. The Board’s policy, in brief, simply means taking the existing machineiy, as it stands, and applying all the features that have’ been proved by experience, with one new feature—that some supervision of supplies to the market and sales upon the market will he exercised oil behalf of the produced, with the Board having the right to transfer produce from one distributor to another if it is found tlmt any one, distribution has not an effective outlet.