PENALTY PROPOSAL FOR MEAT EXPORTERS

Press, Issue 30997, 1 March 1966, Page 1

PENALTY PROPOSAL FOR MEAT EXPORTERS

(From Our Own Reporter) WELLINGTON, February 28. If meat exporters do not divert a prescribed percentage of their exports to markets other than the United Kingdom under the Meat Board’s market diversion proposals, they are likely to be asked to pay a penalty, or “charge.”

This was confirmed tonight by the chairman of the board (Sir John Ormond), who said that the amount raised by the charges would go to a new fund to be used to help defray the cost of developing new markets.

Hs will formally outline the scheme at the beginning of a meeting being held in Wellington on Thursday morning tn evolve a new system for financing meat sales in new markets. The Dominion meat and wool council of Federated Farmers will then attend the half-yearly meeting of the electoral college of the Meat Board. Sir John Ormond is expected tn propose that, unless at least 5 per cent of shipments go to new markets, individual exporters contribute to the new fund.

He said tonight that, although the new fund might not wholly cover costs, the board still believed that meat industry reserve accounts funds should be available to help. NEW FORMULA Government insistence that it will not allow the meat industry reserve account to continue to be used to support costs of developing the

North American market for lamb beyond this season has precipitated the search for a new formula to share new market development and diversifications costs among interested parties. Sir John Ormond confirmed that the freezing industry representatives were resisting the board’s scheme and pressing instead for redoubled efforts to break down trade barriers on lamb and other meat exports.

He acknowledged that the meat exporters had offered

to make a financial contribution—reportedly up to £120,000 a year—to the cost of market development. Freezing firms also remain wary over the possibility that the board may use the occasion to extend its influence or control over marketing, now in private hands, except for North America, where a consortium has a marketing monopoly. ADJUSTING SHIPMENTS Industry executives have pointed out that some over-seas-based freezing firms have similar interests in Australia. Where they are not already selling the proposed required quantities of meat to “new” markets, they could do so by adjusting shipments to Britain from Australian and New Zealand sources.

To suggestions that farmers on Thursday accept the scheme only to find that the new “charges” fall on their own co-operative selling mainly or exclusively to Britain, Sir John Ormond said yesterday:

“Our ideas are only a basis for discussion. We will put the scheme to the meeting and those present can then work out the actual details.” The Minister of Overseas Trade (Mr Marshall) and the Minister of Agriculture (Mr Talboys) will attend the meeting.