Call for levy on all meat

Press, 26 May 1979, Page 20

Call for levy on all meat

A change in the method by, which minimum prices for meat are funded was favoured by the annual conference of the meat and wool section of North Canterbury Federated Farmers. At present, when prices reach trigger levels a proportion of producers’ returns is skimmed off into the sheepmeat or beef stabilisation (buffer) accounts for this purpose. The conference voted in favour of a levy’s being imposed for this purpose on all meat. This is in line with the system with wool. This decision was taken during a long discussion on minimum prices mechanisms

'.and Government supple- ■ mentation of minimum i prices. For support ef wool it was I agreed that the present sys--1 tern under which growers’ returns are levied for both i promotion and stabilisation, • or price smoothing, should be ; retained. In the case of both meat i and wool it was decided to ■ recommend that where money is skimmed off returns i to comply with Government ■ fiscal requirements, it should I be placed in producers’ own : equalisation accounts. The conference also rei affirmed a decision of a proi vincial district meeting in > March that any Government

supplementary minimum price schemes after 1980 should be controlled by the relevant producer boards. The meeting also reaffirmed the federation’s view that the Meat Board’s levy for administration and promotion should be on all meat slaughtered—not only that for export. A remit from the Hawar-den-Waikari branch urging that the province should continue its support for the purchase of the freezing works at Kaiapoi by producer interests received unanimous support. The chairman (Mr M. R. Murchison) said it was regrettable that no more progress had been made with this because of the stalling of the Treasury and the Minister of Finance (Mr Muldoon). “There is a growing body of opinion among farmers that we should consider building a new works to create a much-needed element of competition in this area if a decision is not forthcoming soon,” said Mr Murchison. “I believe that the Government is procrastinating and that it is well past time for such a decision.” Later he said that a decision on Kaiapoi could be reached in the relatively near future.

“There are five companies

in the South Island and 17 in the North Island. We need more competition,” said Mr M. T. Newton (HawardenWaikari) when a remit from the branch was introduced seeking a relaxation in the criteria for the licensing of new processing plants. It also was approved by the conference.