CENTRAL MILK COUNCIL REPORT OF THE DIRECTOR OF MILK MARKETING FOR THE PERIOD ENDED 31st MARCH, 1948

Appendix to the Journals of the House of Representatives, 1948 Session I, H-31a

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1948 NEW ZEALAND

CENTRAL MILK COUNCIL REPORT OF THE DIRECTOR OF MILK MARKETING FOR THE PERIOD ENDED 31st MARCH, 1948

Presented to Both Houses of the General Assembly Pursuant to Section 112 of the Milk Act, 1944

The Director of Milk Marketing to the Hon. the Minister of Health. Madam, — Wellington, 25th August, 1948. I have the honour to present herewith, pursuant to section 112 of the Milk Act, 1944, a report of the operations of the Central Milk Council for the year ended 31st March, 1948. I have, &c., H. H. Innes, Director of Milk Marketing. The Hon. Minister of Health.

REPORT

Personnel of the Central Milk Council During the year there was a change in the Chairmanship of the Central Milk Council, the Hon. Mabel B. Howard, as Minister of Health, taking over the Chairmanship from the Hon. Mr. Nordmeyer, who relinquished the portfolio of Minister of Health. The Hon. Miss Howard attended her first meeting on the 20th June, 1947 ; there were no other changes in the personnel of the Council. The personnel and constitution of the Council has therefore been as follows : Chairman : The Hon. Mabel B. Howard, as Minister of Health. Dr. Muriel Bell, representing the interests of women and children, appointed on the recommendation of the Minister of Health. Mr. M. E. Lyons, Deputy Mayor of Christchurch, and representative of the Municipal Association of New Zealand (Incorporated), appointed on the recommendation of the Minister of Health. Messrs. K. K. Montgomerie and C. J. McFadden, representatives respectively of North and South Island Town Milk Producer Associations, and appointed on the recommendation of the Minister of Agriculture. Mr. H. E. Combs, M.P., appointed on the recommendation of the Minister of Health. Mr. H. H. Innes, as Director of Milk Marketing.

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Declaration of Milk Districts and Establishment of Local Milk Authorities As at 31st March, 1948, the following is a schedule of the declared milk districts and established Milk Authorities :

Public Inquiries Conducted by the Central Milk Council During this period only one public inquiry was undertaken —that of investigating the most economic means of ensuring the adequate treatment of milk in the Timaru Milk District. Pursuant to the provisions of section 103 of the Milk Act, 1944, the Committee of the Council set up to conduct this inquiry consisted of Mr. M. E. Lyons, Chairman, Mr. L. C. Nisbet, F.P.A.N.Z., and Mr. C. J. McFadden. A public hearing was held in Timaru on Thursday, 11th September, 1947, and subsequently the Committee presented the following recommendations to the Council: — 1. The Committee is of the opinion that the throughput for Timaru is not sufficient to justify two treatment plants operating in the district, and recommends that steps be taken by the Marketing Department, preferably by negotiation, to acquire the treatment side of the Midland Dairy Go.'s business. 2. The Marketing Department, having acquired the business and premises of the Supreme Co. is faced with capital expenditure upon buildings and plant to bring the premises up to the standard desirable and to provide for handling the whole of the milk under one roof. Some capital expenditure on each is inevitable even if the two plants continued to operate, and in the case of the Midland Co. they stated in evidence that the Company proposed to build a new treating house. 3. The Committee is not satisfied that it would be wise to concentrate upon the present Supreme site, feeling from the examination made prior to the Committee sitting that there is not sufficient scope to convert it into a good unit having regard to future growth of the district. The loading in and out facilities will never be completely satisfactory on the present site. Taking into consideration that

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District. Authority. Date constituted or Date of First Election. Auckland Metropolitan Auckland Metropolitan Milk Board /15/7/45 \ 14/8/45 /15/7/45 x14/8/45 /15/7/45 \ 14/8/45 / 20/12/45 \ 23/1/46 /15/7/45 x14/8/45 24/8/45 14/9/45 17/8/45 15/7/45 15/7/45 24/8/45 15/7/45 7/9/45 1/3/46 14/9/45 15/2/46 24/8/45 14/6/46 24/8/45 24/8/45 22/3/46 17/8/45 1/7/46 15/7/45 15/7/45 23/12/47 Christchurch Metropolitan Christchurch Metropolitan Milk Board Dunedin Metropolitan Dunedin Metropolitan Milk Board Hutt Valley and Bays Metropolitan Hutt Valley and Bays Metropolitan Milk Board.. Palmerston North Metropolitan .. Palmerston North Metropolitan Milk Board Ashburton Balclutha Blenheim Daimevirke Feilding Hamilton Hastings Invercargill Lyttelton Mataura Mount Maunganui Napier Nelson Oamaru Stratford Tauranga Timaru Te Puke Wanganui Whangarei Waimate Ashburton Borough Council Balclutha Borough Council Blenheim Borough Council Dannevirke Borough Council Feilding Borough Council Hamilton City Council .. .. Hastings Borough Council Invercargill City Council .. .. Lyttelton Borough Council Mataura Borough Council Mount Maunganui Borough Council .. Napier Borough Council .. .. Nelson City Council Oamaru Borough Council Stratford Borough Council Tauranga Borough Council Timaru Borough Council Te Puke Borough Council Wanganui City Council Whangarei Borough Council .. .. Waimate Borough Council

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some substantial capital expenditure will have to be made by some one, the Committee is of the opinion that an exhaustive examination be made by the Marketing Department as to whether it would not be advisable, and in the long-run more economical, to shape policy towards a removal from the present site by establishing a new unit, and in the meantime to carry on with a minimum of additional expenditure pending the easing of building restrictions. Your Committee is of the opinion that the •existing Supreme building would be readily saleable. The recommendations of the Committee were unanimously adopted by the Central Milk Council on the 16th September, 1947. Purchase op Privately Owned Milk-treatment Plants in Order to Ensure the Public Treatment of Milk

During the twelve months period, Ist April, 1947, to 31st March, 1948, the following •additional privately owned milk-treatment plants have been purchased by the Crown :

Supply Associations Approved by the Central Milk Council During the year the Council approved of the following supply associations in terms of section 92 of the Milk Act, 1944

Negotiations Respecting the Extension op Milk-treatment Facilities for the Auckland Metropolitan Milk District A considerable amount of the Council's time was taken in the various negotiations which were conducted throughout the year. Following upon a conference in Wellington between representatives of the Government, the Central Milk Council, the Auckland Metropolitan Milk Board, the Auckland Milk Treatment Corporation, and the New .Zealand Co-operative Dairy Co., Ltd., the following resolution was passed :—- " That the Prime Minister be informed that this Council agrees that a special committee of eight persons equally representative of the Central Milk Council, the Auckland Metropolitan Milk Board, the Auckland Milk Treatment Corporation and the New Zealand Co-operative Dairy Co. should be set up as soon as possible to examine and make recommendations for the carrying-on of the treatment houses operating in the Auckland Metropolitan Milk District and the necessary alterations and improvements thereto ; regard to be had to the equitable conduct of the businesses of the two organizations now involved in the provision of milk-treatment facilities in this area."

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Plant. Date of Acquisition. Total Value. £ s. d. Auckland Milk Co., Ltd. .. 1/4/47 83,000 0 0 "C. L. Baikie, Timaru 23/5/47 1,396 0 0 Taieri and Peninsula Milk Supply Co., Ltd. 1/6/47 54,369 0 8 "Otago Co-operative Milk Supply Co., Ltd. 1/6/47 10,386 9 1 Dunedin Wholesale Milk Supply Co., Ltd. 1/6/47 19,531 2 10 Milk Hygiene (Balelutha), Ltd. 15/3/48 4,993 11 0

Name of Producer Association. Milk District. Maharahara Co-operative Dairy Co., Ltd. Dannevirke. South Canterbury Co-operative Milk Timaru. Supply Co., Ltd. Christehurch Committee of Supply Christehurch Metropolitan. Blenheim Co-operative Milk Supply Co., Blenheim. Ltd. Whangarei Co-operative Milk Marketing Whangarei. Co., Ltd.

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Subsequently, this special committee reported to the Central Milk Council on10th October, 1947, and this further resolution of the Council is recorded : " That this Council approves of the special committee's recommendation that the three Auckland milk-treatment plants—viz., the Auckland Milk Treatment Corporation's plant at Rockfield Road, the extension of the New Zealand Cooperative Dairy Co.'s Epsom treatment house, and also the North Shore plant—which are all regarded as urgent projects, should be proceeded with, and that an approach be made to the Building Controller immediately for permission toproceed with the plants." After consultation with the Building Controller, and at his urgent request, it was further agreed to withhold the application for the erection of a new treatment plant on the North Shore and to proceed with the two new major projects on the south side, in the meantime arrangements to be made for an adequate supply of bottle milk to the North Shore from the new plant at Rockfield Road. Provision of Trained Personnel for Milk-treatment Plants During the past year members of the Council have paid particular attention to theneed for some scheme which would bring forward a greater number of trained personnel for employment in milk-treatment plants, particularly in regard to the testing of milk quality. After discussions with representatives of the Government, the following scheme was approved by Cabinet 1. That approval be given for the provision of bursaries at Massey Agricultural College asunder : Degree Course— Four bursaries in 1948. Three bursaries in 1949. Two bursaries thereafter. Diploma Course — Five bursaries per year. Milk Technicians'' Course— Eleven bursaries for 1948. Five bursaries thereafter. 2. That the terms and conditions for bursaries be as set out on pages 5 and 6 of the report of theCommittee of the Central Milk Council attached to memorandum of 7th January, 1948, from the Director, Milk Marketing Division. 3. That an expenditure of £3,127 10s. be approved for the year 1948. 4. That after twelve months the position be reviewed with the idea of the industry bearing future costs in connection with the scheme. Fixation of Goodwill Prices for Milk-rounds In keeping with section 105 of the Milk Act, 1944, the Council gave consideration to and approved the fixation of goodwill prices for milk-rounds in Dunedin and Hamilton at the following rates per gallon : Dunedin : £7 10s. for retail and £4 for wholesale class of sale. Hamilton : £l2 for retail class of sale. Miscellaneous The Council gave consideration to and approved—(a) A report on " The Effect of Sunlight on Milk." (b) Appointment of Inspectors under section 72 of Milk Act, 1944, at Christchurch,. Auckland, Whangarei, and Napier. Approximate Cost of Paper.—Preparation, not given; printing (768 copies), £lO.

By Authority: E. V. Paul, Government Printer, Wellington. —1948. Price 3d.]

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