Meat levy payment by local producers?

Press, 9 December 1976, Page 27

Meat levy payment by local producers?

PA Wellington. The Government is considering a Meat Board proposal that the board’s export levy be paid by producers of meat killed for New Zealand consumption. The board has asked for extra levy money to help overcome a projected S2M deficit this year — a request to which the Minister of Agricuture (Mr Maclntyre) is believed -sympathetic. The board has estimated the move might boost its finances by about 50 per cent. Budgeted income this year is 54.74 M; and although the board has budgeted for a 52.25 M deficit, severe budget control meant that for the first nine months of the board’s vear, the deficit was, in fact only $300,000. At the last meeting of the board’s electoral com-

mittee in August, the chairman of its finance committee (Mr J. L. Daniell) said that if the board did not increase its income in some way, it might have to reduce its activity.

At present, all stock killed for export carries a levy of 0.772 c a kilogram, paici to the board. The proposal before the Cabinet is that all meat killed in New Zealand will have that amount levied on it.

The board justifies levying local meat by contending that all meat prices in New Zealand are, to a greater or lesser extent, influenced by ruling world meat prices, since most of the meat produced here is sold on the world market. Thus, says the board, a farmer who produces purely for the local market derives income benefits from the board’s promotion overseas.

Some Governement officials are thought to be a little nervous about the board’s proposal, in case it leads to increases in meat prices in local butchers’ shops. But experience has shown that changes in levy rates are normally borne by the farmer rather than the consumer, unless the market is working unusually in sellers’ favour.

Even if the levy were passed on, it would amount to only about 1c a kilogram by the time a retailer had costed out his carcase purchases.

The payment of the levy at the local level does open up, however, the role of the Meat Board in the New Zealand market. The board is obliged by its act to function only in respect to meat sold overseas. It has on occasions stepped in with some promotional work — such as the 1975 lamb-cooking

competion — and with more subtle efforts persuading local restaurateurs to feature lamb on their menus. But none of the excellent promotional and educational material used by the board is available here.

Hints on how to carve lamb or cook a Greekstyle lamb mousaka would no doubt be welcomed by New Zealand housewives.

But there are logistic difficulties involved in the board’s getting too tied up with the local market.

The hoped-for marriage of the local and export killing and processing industries has yet to become a reality; and there must be many observers who would suggest that the board will never have enough money to spend overseas.

But these will be minor considerations alongside the major point of giving New Zealand’s most important primary export a further boost in overseas markets.