Labour sceptical of meat levy assurance

Press, 21 October 1980, Page 7

Labour sceptical of meat levy assurance

PA Wellington The Government has given an assurance that an extension to domestic meat of the levy used to fund the Meat Board will not result in higher retail costs. However, the Opposition has greeted the assurance sceptically. The Meat Export Control Amendment Bill extends the levy now payable on export meat to domestic meat. It would apply from the start of next year.

The Minister of Agriculture (Mr Maclntyre) said the present 0.772 c , a . kilogram levy had proved insufficient to meet the

Meat Board’s administrative costs. The board had run at a deficit of $4.5 million last year — a figure estimated to rise, to $8 million in the 1980-81 year.— and had been forced to draw from the meat industry reserve account, he said. This was undesirable: normal board losses should be met by the levy, and the account be used for market intervention. Mr Maclntyre said farmers and the board believed that the board’s promotion activities should be financed by all meat producers. They all benefited even if only indirectly through board research and education. The levy might increase to about 1c a kilogram but the board was keen to arrive at an average price per animal. The rates of levy would be fixed by the Meat Board, but if the rates increased more than 20 per cent a year, the consent of the Minister would be required. Mr Maclntyre said that the cost of the levy would be paid by the farmer, not the consumer. Stock agents and butchers would take the levy into account when buying stock.

Labour’s spokesman on agriculture, Sir Basil Arthur (Timaru), said it had been suggested that the price of meat on the local market would increase considerably.

The right given to the Meat Board to fix the rate of levy also virtually gave it “a blank cheque” to raise the rate- 20 per cent a year, he said. The bill was introduced and referred to Parliament’s Lands and Agriculture Select Committee.