TWO MILLION

Auckland Star, Volume LXXIV, Issue 225, 22 September 1943, Page 2

TWO MILLION

MEAT POOL ACCOUNT

FINAL TRANSACTIONS

A total credit balance of nearly £2,000,000 is expected in the Meat Pool Account for the last two complete seasons, according to advice received from the New Zealand Meat Producers' Board to-day. In regard to the 1942-43 season the account shows to July 31 an estimated credit of £569,522. The official transactions for 1941-42 showed that the pool account for that season would finish up with a credit estimated at £1,018,079.

The main items which have helped to swell the funds in the pool during the past year, states the board, are increased shipping space, the additional price received for tallow, the 5 per cent additional price paid for slipe wool, and the shipping of frozen carcases of ewes and ewe legs. The principal credit resulted from price increases granted by the United Kingdom Government and by increases in the price of pelts at the time the opening schedule prices were fixed, which were held in order to provide a fund for the main purpose of maintaining the value of ewe mutton at a fair and reasonable level. For the 1941-42 season this item amounted to £1,781,532. The pool account was also credited with the increase in price obtained by the New Zealand Government from the United Kingdom Government arising from the sale of tallow. For the twelve months ended July 31, 1942, this item amounted to £125,520. In addition there was a profit on canning beef killed during the period October 1, 1941, to January 17, 1942, of £9727.

The capital liability of £590,000 is made up of £325,000 for cannery plant and buildings, and £265,000 for emergency cool stores. It will be recalled that the agreement relating to the Meat Pool Account provides that, if at the end of the emergency period there is a surplus remaining in the account, the Government and the Meat Board will consult to determine ways and means by which such amount can be utilised for the benefit of the industry. Should there be a deficit in the account at the end of the emergency period such deficit will remain the responsibility of the New Zealand Government. The termination of the emergency period shall be determined by the Government. Emergency Buildings

The pool account is debited with the assessed costs and liabilities incurred by the Government in respect of the purchase of export meat products, both frozen and canned, and the erection and operation of emergency cool storage and canning plants. Against the latter item it is expected that at the end of the emergency period these buildings will have a residual value which will come in as a credit in the account. The main debits were itemised as: Loss on canning meat, £608,367; storage, interest, insurance and sundry expenses, £93,667; amount written off capital cost of emergency cool stores, canning plant and buildings, being one-third of the estimated cost of £590,000—£196,666, The balance thus arrived at shows a surplus for the 1941-42 season, as above mentioned, of £1,018,079.

The interim accounts for the 194243 season show a surplus on meat shipped up to that date of £900,982, surplus on tallow sales £360,000, surplus on slipe wool £130,000. The debits comprise, loss on canning meat, £596,794; interest, insurance, storage and sundry expenses, £28,000; one-third of capital cost written off, £196,666. This leaves an estimated surplus to July 31, 1943, in respect of the second season of £569,522.