THE MEAT LEVY

Ashburton Guardian, Volume 55, Issue 128, 12 March 1935, Page 7

THE MEAT LEVY

MR CONNOLLY’S OPINION. EFFECT ON THE DOMINION. (Special to the “Guardian.”) WELLINGTON, March 11. To gain an opinion from an experienced producer who has wide knowledge of the lamb and mutton industry and of farm finance, a correspondent asked Mr J. Connolly (Mid-Canterbury) his views as to the practical effect of a levy upon the New Zealand meat producer*. Mr Connolly had already worked it out in detail. “Take the effect in relation to what can be called ‘one ewe country’ at £8 per acre,” replied Mr Connolly. “The production from that acre is to be levied, according to the proposal, to the extent of Is 6d, and if this is worked out on the basis of the capital yalue of the land, it means a reduction of 30s per acre. But if you take the valuation at current prices, the effect of the levy would be even more disastrous in reducing the net return from the acre. “Put it in another form,” continued the member. “New Zealand, if it agrees f° a halfpenny levy on its meat exports, is in effect called upon to give away the whole value of a year s pioduction every ten years. It would be a smaller loss if we made the gift at the end of ten years, for we would have the use of the money involved for most of that time. This should make apparent what a drastic effect such an imposition would haye on our export industries, and what a bad blow it would! be to the whole country. One thing should inevitably follow, . and that is a considerable reduction by Britain in pur indebtedness and in our interest payments to that countiy. It was pointed out by Mr Connolly that to-day’s situation is all the more serious because it has developed aftei the Imperial Government had heard New Zealand’s case fully presented. Yet, after all this, the proposals of the White Paper had come along. It would have been less alarming had it appear-; ed before there had been an opportunity for discussion. “But,” said Mi Connolly, “it is presented after months of negotiations with New Zealand, represented by those whom the Government considered fully qualified to place our case. The failure to convince the Home authorities involves no reflection on our representatives, but it is significant that their strong case made little or no impression. “I am going to make the suggestion,” he added, “that New Zealand should enlist the help of his Excellency the Governor-General in the continuation of the negotiations. .We regret his Excellency’s departure from the Dominion, for the agricultural and pastoral community in particular will feel his loss. Lord Bledisloe knows the wants and! ; requirements of New Zealand, he realises the sparse nature of settlement in this country and the great need for further development, while at the same time, as one of the foremost of British agriculturists, his knowledge is broad-based. The Government should invite his Excellency, when he returns to England free from official responsibility, to join the Pnm Minister in the coming negotiations, holding official status on the New Zealand delegation.”