EGG EXPORT.

Press, Volume LXVI, Issue 19980, 15 July 1930, Page 12

EGG EXPORT.

SUBSIDY FROM GOVERNMENT. POULTRYMEN'S REQUEST. Poultrymen representing the industry in Canterbury waited upon the Prime Minister, the Hon. G. W. Forbes, yesterday, asking that the Government reconsider its decision of not granting relief to the industry this year by way of subsidy or guarantee. The deputation numbered 30, representing all branches of the industry in Canterbury. Competition in World s Markets. In introducing the deputation, Mr E. W. iiawke, M.P., said it was representing the industry in Canterbury, which had learned that Cabinet had decided not to give a guarantee or a subsidy for tho export of eggs. They felt keenly Cial such a decision was a mistake—- ;< stop backward rather than forward. It was found necessary to export surplus eupplios, but although that had been douc the prices secured wero not so good as wero expected. The poultrymen's organisation wag not a very strong one, and therefore, the support wad not uniformly strong, but there wr«; hundreds of poultrymen who wanted to export. It was felt that although the methods of grading were in ti.'.ir infancy, with a little organisation the industry could compete in the world's markets. A subsidy from the Government this year would avoid disaster for a large number of poultrymen, and it seemed essential that that assistance be given to allow the surplus of eggs to be exported. Organisation of Grading. Mr H. Williams, a vice-president of the New Zealand Poultry Association, said that last year the Government had made a grant of £IO,OOO to assist the industry, and of that only a little over £SOOO had been used. This year a request for £SOOO had been turned down, and it wai clear that it would be impossible to get along without it. A suggestion had been made to the Government that if a system of local grading were adopted, it was quite possible that export might not bo necessary, but it was quite impossible to put that suggestion into effect this year, and therefore, the subsidy was essential. Reports showed that poultrymen used 2,000,000 bushels of wheat in a year, but to-day many of them were on the verge of having to "walk-out." If no assistance were forthcoming from the Government this year many poultrymen would be placed on the labour market in a short while. It might be thought that the subsidy was not economically sound, but it was certainly justifiable, as in the event of no subsidy being given hundreds of men in the industry would be forced out of it. Uniform Price Sought. Stating that his companv. represented between 800 and 900 producers, Mr E. J. Ross, chairman of the Canterbury Co-operative Poultry Producers, Ltd., asked the Prime Minister if the decision to withhold assistance this year -noali not be reconsidered. A surplus of eggs at certain seasons of the year meant that poultrymen had to be assisted in exporting. The idea was hot to secure high prices locally—high values were not good for the industry or the producer—but to endeavour to seeare a uniform price. A system of grading would obviate a number of the present difficulties, but such system could not be brought into operation this year. If no support was given by the Government it would not be possible to export a sufficient quantity of eggs to maintain values at a figure above cost of production. Assistance was sought this year, but it was hoped that a similar request would not be necessary again.

A Lean Tear. Mr J. Liggins said it was generally recognised that the country was passing through a period of financial stringency, but the poultrymen during the past year had had a particularly lean time. He did not want to cry poverty or run the industry down, as he was fully convinced that it would yet. come into its own and be a great asset to the Dominion. It was considered that there "were about 3,000,000 birds in the industry in New Zealand, and for them easily £1,500,000 was used in one year for feed, taking- an average cost of 10s a bird per year. The biggest proportion of the amount went directly or indirectly to the wheat-farmers. He supported Mr Boss's statement that a high price for eggs was not what was wanted, bnt support from the Government would assist in stabilising the market during the spring and summer at a payable figure. Poultrymen's Losses. "Consequent upon the Government's decision not to grant a subsidy this year, numbers of poultrymen on small and large holdings will be driven out of the industry," said Mr W. H. West, president' of the New Zealand Utility Poultry Club. "Last summer, even with exporting, egg values were as low as Is a dozen, and if there is no Government assistance this year for exporting, I should say the price of eggs will fall to ?d. a dozen for the corresponding period. Production oQsts average from lOd to lid a dozen, and X doubt whether there is any other produce marketed with so small a margin of profit between the producer and the consumer. Our house cannot be put in order until wo get a grading system organised, but that cannot be this year, and thus the Government's decision is twelve months too Boon. Also in view of the protection given to the wheat industry, some assistance should be given to poultrymen." )Mf G-. H. Bradford, organising secretary of the New Zealand Poultry. Association, maintained that the poultrymen were not seeking anything in the way of a dole, but merely relief similar to that extended to other industries. He pointed out that the poultry industry was worth £2,892,873 in a year, sad the wheat industry is £2,500,000. Yet the latter was protected, and the former unprotectedMr Forbes: Tour figures refer to poultry kept by other than simply poultry farmers. f ' Mr Bradford: May I.ask you how many there are who rely alone on the growing" of wheat? We have many more men relying simply on poultry than there, are simply growing wheat. Mr Forbes: This matter concerns poul try, and not wheat. Wheat is protected by duty, and is not a subsidised industry. There i? protection given to your industry, such as duty on egg pulp and similar products. Mr Bradford: We want £SOOO this year, and surely it is better to give that amount to an industry than give a dole for unemployment. Our industry uses one-quarter of the output of wheat, and your decision will result In many poultrynlen going out of business. That will reflect back on the other, industries concerned, and m»y even.result In a shortage of eggs. . The Hon. Xj. M. Isitt said the poul toymen were in manifest distress, and

their plea -was economically sound. The losing of the subsidy would be a big check to a struggling industry. Producers were right up against it, and many had already given up. The Qovemment should tide them over the anxious period. Prime Minister's Statement. "1 need hardly say that my sympathy is with the poultrymen," said Mr Forbos, "and I showed that when as Minister for Agriculture I got the Prime Minister to give a subsidy to the industry; but I stated then definitely that such-was'for one year only. ' While it may- be possible to do such things one year, it depends entirely on the finances. Tho granting of a permanent subsidy was impossible. To-day the Government is up against a very difficult situation, and anything such as this subsidy has to come from the taxpayers. I would have to go to thorn, aiid ask for £SOOO, so aB to keep the price of eggs up. What kind of a reception would that suggestion get? The exporting of eggs has been tried twice, and on each occasion there has been a heavy loss, and I do not know that it could be termed economically sound to subsidise a market which is a losing proposition. My position as Minister for Finance makes it necessary to carefully consider every pound that goes out. If I could I would like to say that you could have £IO,OOO, and it is obvious that if the Government was able to spread money among industries it would keep a lot of men in work. We cannot do that now, and we must go to the taxpayers for money, and the bigger the tax burden the more difficult it is for the country to recover. A great many grants and subsidies havo had to be stopped. Tho strongest argument your industry has is the protection given the wheat-grow-ers, which causes the price of fowlwheat to be too high. I will go thoroughly into the whole question immediately I return to Wellington.

N.Z, GOLD RESERVES AUSTRALIAN COMMENT. The "Wild Cat Monthly," of July sth, states that in some respects, and most notably in regard to its ideas about finance, New Zealand is moro conservative than Britain. In its oarly days the Colony had some salutary lessons on the dangers of departing from strict business principles in banking and in the administration of the public purse. It took those lessons to heart. Like Australia it had a gold boom, got drunk on it, and had an unfavourable trade balance for a decade. That jag ended in 1886, and in only four years since, and those pretty widely spread, has the balance been to debit. Probably the surpluses haven't been quite sufficient, most of the time, to pay the interest on external loans, but the record is very much more impressive than Australia's.'

• One of the New Zealand financial habits engendered by hard experience is a sort of super-scrupulousness about bank-note issues. There has been no occasion in the last 50 years when the banks of issue have not held more coin and bullion than was required to redeem their notes- I —in 1894 they could have planked four sovereigns on every note presented, and their promises to pay gold were revoked by war-time legislation, which made the banks' holdings of public securities in' Maoriland a legal backing; nevertheless they continue to hoard metal reserves at least equivalent to their note issues. A recent arrival in the Dominion, Mr B. C. Ash win, the latest British Trade Commissioner, has been puzzled by this. He estimates that it costs the country £330,000 a year to hold its gold, and that the gold would be more useful to the Dominion's traders if it were shipped to London and placed in the vaults of the - Old Lady of Threadneedle street.

In support of that argument he suggests that exchanges on London would be cheaper, but he admits that if the gold went away without legislative safeguards the advantage might go to Australia, since four Australian banks operate in the Dominion.. That, it would seem, is precisely why the influence of the Bank of New Zealand (which has the State as senior partner) and of the National of New Zealand ;has, been for so many years in favour of a policy of. concentrating reserves in New Zealand rather than in London. ,Mr. Ashwin proposes to frustrate knavish tricks by a legislative ukase compelling the banks to base exchange rates on, the cost of gold shipment, and as a further aid to the solution of exchange problems he wonld like the banks to be allowed to hold either in New Zealand or Britain the Government securities which back their non-convertible notes. The banks had not, at time of writing, offered any comment on the matter. Possibly they think they know their own business best.

SUPPLY OF ELECTRICITY. LARGE CONTRACTS LET. U&rau onrxcux. wxulxss.) (Beceived July 14th, 5.5 p.m.) BUGBT, July 13. The Central Electricity Board has placed further important contracts to the value of nearly £550,000 in connexion with the electricity schemes which are now being carried into effect. The contracts are for the supply of high tension cables for carrying the current from a series of great generating stations in the various areas into which the country is divided. TRADE DELEGATION. MISSION TO SOUTH AFRICA. (B&rasß omcuii wibxioess.) (Beceived' July 13th, 5.5 p.m.) BUGBY, July 12. It is understood that the Government has decided to send a trade delegation to South Africa under the chairmanship of Lord Kirltley, ex-president of the Chamber of Shipping of the United Kingdom. A statement on the subject will be made in reply to a private notice ques-. tion in the House of Commons on Monday. PROFITABLE ADVERTISING. To rpend too little on advertising is to waste all the money you spend. Advertising must be consistent: it must be followed up, and a solitary effort cannot produce lasting results.—Mr F. J. Marquis, Chairman, Liverpool Advertising Committee.