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PART TWO—RECOMMENDATIONS ON ADMINISTRATION I. GENERAL ORGANIZATION The organization of an industry is a matter of great importance. When that industry is New Zealand's largest industry, organization is even more important. By organization we do not refer to that known as Federated Farmers of New Zealand. We mean the arrangement and ability of the sheep industry, both the farmers and the farm workers who constitute the industry, to administer the affairs of the industry. 1. PRESENT POSITION OF THE SHEEP INDUSTRY Let us examine the present position. There are three official industry bodies —the Meat Board, the Wool Board, and the Wool Disposal Commission ; and there are four administrative bodies —the Department of Lands and Survey, the Department of Agriculture, the Soil Conservation and Rivers Control Council, and the Department of Scientific and Industrial Research. (i) The Meat Board The Meat Producers' Board was established in 1923, the general purposes being set out in the Meat-export Control Act, under which the Board was set up. The Preamble to that Act reads : WHEREAS the economic welfare of New Zealand has lately been adversely affected by reason of a reduction in the net returns receivable by persons engaged in the businessof the production of meat for export, such reduction being due in part to falling prices and in part to the charges payable in respect of freight and other services : And whereas conferences have lately been held of representatives of the Government and of persons whose business is the production of meat for export, and it has been resolved that the public economic welfare will be promoted by the establishment of a Board of Control, with power to act as the agent of the producers in respect of the preparation, storage, and shipment of meat and in respect of the disposal of such meat beyond New Zealand: And whereas it is desired to give effect to the resolutions aforesaid, and to provide by law accordingly : And whereas it is further deemed necessary and desirable that the expenditure of the Board of Control should be subject to audit as if it were public expenditure, and that the expenditure of the Board should be guaranteed by the Government of New Zealand . . . The constitution of the Board is as follows : (а) Five representatives of the producers, one of whom is Chairman. (б) One representative of the dairy-producers. (c) One representative of the stock and station agents. (d) Two representatives of the Government. For the election of producer representatives New Zealand is divided into twenty-one electoral districts, the largest district having three delegates to the Electoral Committee, while there are two other districts with two delegates each, the remainder having one delegate. The Electoral Committee receives nominations for producer members, such nominations being moved and seconded by registered sheep-owners. The Committee elects the required number of representatives from among those nominated. There is thus no direct system of local representation as there is nothing to prevent all five producers' representatives coming from either the North or the South Island. These producers' representatives hold office for two years, and three retire one year, and two the next.