MEAT TRADE.

Press, Volume LII, Issue 15648, 21 July 1916, Page 5

MEAT TRADE.

ALLEGED IMPERIAL PROFITS

(SPECIAL TO "THE PRESS.")

WELLINGTON, July 20

In the House this afternoon, Mr j G. Witty drew tho attention of the Prime Minister to a letter published in the Christchurch "Press" by Mr G. D. Greenwood, in which it was alleged I that the Imperial Government was making a profit of 12s 6d per head of lamb sent Home from New Zealand, and was selling lamb to the consumer at Home at a cheaper rate than it could be sold in New Zealand. If this were so, said Mr Witty, would tho Prime Minister sea» that the people of this country got the first chance of securing cheap meat, seeing that the Old Country was not using this meat for its troops? In reply, Mr Massey said that he had not sufficient data at band to reply to the question asked about the profit on lamb. The statement was also made that none of the mutton being sent Home was being used for the purposes cf the Imperial troops, but this' was not quite correct, for he believed that some part of the mutton was used, but none of the lamb. Ho was having the matter looked up. As a matter of fact, correspondence had been passing between him and tho High Commissioner on this very subject within tho last few weeks, and he hoped he would be able to make a statement to the House in a day or so. The statement was made that the cost of shipping was 2d per lb, but as a matter of fact, lie believed it cost not less than 2|d per lb. There were • many charges, said Mr Massey, upon the meat which the public did nst thir.k of, and which were unheard of befo:< e •the commencement of the war. For instance, owing to the scarcity of shipping, the Imperial Board of Trade had to pay very heavy charges for storage in New Zealand. It was thought at the time the arrangement was i-ntered into that the Board wonld see that sufficient shipping would come to this country to take away, the meat, but this had not been the case. Approximately 2,000,000 carcases were m store in this country. These had to be paid for after one lrioath's storage, and then at the other end the Board of Trade, for reasons of its own, kept 3,000,000 carcases in storo a® a sort of reserve, and this, of course, had to be paid for. Then there whs the cost of handling at the other end, commissions, and demurrage, and so on. These things had to bo paid for. Mr Massoy concluded by promiHi.'ig p ttareI ment when he received full details on the subject.

TO THE EDITOR OF "THE PRESS." Sir, —Mr Greenwood's statements and figures in his letter under tins heading, appearing in "The Press" of 19th instant, are far from accurate In the first place his information that only New Zealand beef is used for feeding troops iB quite unreliable, for anyone who. is in touch with the Home trade wili know sliat krge quantities of mutton, and in some cases the heavier grades of lambs, have been used for the same purpose. Mr •Greenwood's figures regarding costs, etc., which, bv the way, he admits are only supposition on His part, are by no means correct. The question of the selling price of Imperial commandeered meat at Home has been raised on several occasion." there, and articles on this subject in recent London papers gave figures relating to the costs incurred by . the Board *of Trade. These figures give the landed cost in London of New Zealand lamb to the Imperial Government at 7 15-16 d per lb. This price includes price paid f.o.b. New Zealand (ojd per lb), plus New Zealand storage, sea freight, and landing charges. Therefore the Imperial Government has by no means conducted all its irozen meat trade on a paying basis, as Now Zealand lambs have been mid on the London market down to 6£d per lb. Taking the present price—9|d per lb for New Zealand lamb on London market to-day, as per last cable advice —the Imperial Government would now appear to be making a profit of i 9-16 d per lb. This season an averago New Zealand lamb would weigh 321b, which would mean a profit of 4s 2d per lamb, which is only a third of the profit advanced •by Mr Greenwood, viz., 12s 6d. The fact remains, whether the Imperial Government lire xriaViiig a rirofit on the whole or not, \that' under the present commandeering, the farmers of New Zealand are obc3in*n<| r. far higher price for their frozen meat than in pre-war times; .iiid iE til ore is any further profit which js rot soing uito their pockets, surely, it >boulJ not in these times be begrudsi'vj to the Imperial Exchequer.—Yours, etc., FROZEN MEAT.