THE MEAT POOL

Press, Volume LXXVIII, Issue 23801, 21 November 1942, Page 6

THE MEAT POOL

POSITION OF ACCOUNT The New Zealand Meat Producers’ Board has Issued a statement on the special meat account created in connexion with the Government purchasing of meat commonly known as the “Meat Pool,” which was set up at the beginning of the 1941-42 season. The full provisions relating to this account were laid down In the agreement between the Government and the board which was published in the board’s last annual report. It will be recalled, the statement says, that it was arranged that the producer should receive substantially the same opening schedule price as he did in the previous season, but would forgo any increased price which might have been available as the result of the increases granted by the United Kingdom Government, or by increases at the time in the value of pelts, in ordlr to provide a fund for the main purpose of maintaining the value of ewe mutton at a fair and reasonable level. The Government on the other hand, agreed to purchase the normal exportable kill, which, at the time, Involved a considerable contingent liability because of possible surplus production, having regard to the arrangements made with the United Kingdom Government and the then shipping prospects. As the seasop progressed, the shipping position improved very much on the earlier expectations. Mainly due to this factor, the surplus in the Pool Account at the end of 1941-42 season was estimated at £597,000. The principal credits were created by the increases referred to above—namely, the increased price granted by the United Kingdom Government, and the increase at the time in the value of pelts, also a considerable sum resulting from the resale of tallow to the United Kingdom Government. The debits comprised £667,000 loss on canning ewes and boner beef, and interest, storage and insurance on frozen and canned meat, estimated at £50,000. In addition, the capital liability incurred by the Government in respect of emergency cool stores and cannery plants and buildings, was chargeable against this account. This amounted to £575,000, which is to be written off In three annual instalments'of £191,666. The eventual residual value of these assets will be a credit to the pool account. The board’s agreement with the Government provides that if, at the end of the emergency period, there is a surplus remaining in the special meat account, the Government and the 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 New Zealand Government. The board is of the opinion that any surplus should be at the disposal' of the Meat Board and should be used for restoring and expanding overseas markets for meat and by-pn>ducts. Advertising on a large scale will probably be necessary. In pre-war days, up to £40,000 per annum was spent on advertising, and this may have to be expanded in Great Britain and extended to other countries in order to develop markets for the country’s Increased output of meat. NEW PLYMOUTH OIL BORE (P.A.) GISBORNE, November 20. A bulletin issued by the New Zealand Petroleum Company. Ltd., stated that since the casing was run and cemented at the Devon bore a fortnight ago, the depth of the well had been increased by 460 feet to 8090 feet. The drill was now in mudstone, with streaks of grey sandstone.