Govt will guarantee payments for lamb

Press, 25 February 1987, Page 3

Govt will guarantee payments for lamb

By BRENDON BURNS in Wellington The Government will guarantee payments for lamb shipments to Iran this year and possibly next year. The Minister of Agriculture, Mr Moyle, told Parliament yesterday that the guarantee for the 1987-88 season would enable meat-exporting companies to pay farmers for their lambs at the time of slaughter. The alternative was to have later payments which could affect prices paid. “I was advised by the Meat Marketing Corporation in January that if no guarantee was forthcoming and if delays in receiving payment from Iran were experienced similar to last year, the companies may be obliged to reduce schedule payments to producers by as much as $4.50 a lamb,” Mr Moyle said. In providing the guarantee, the Government accepted the risk of nonpayment by Iran, he said. But in spite of delays, payment had always been made and there was no reason to believe this would change.

Mr Moyle said he believed an oral contract had been entered into for shipments totalling 90,000 tonnes. This is considerably less than the previous year’s shipment of 135,000 tonnes, but there was a bonus. “I think it will be a direct cash deal rather than the oil-for-lamb deals we have had to entertain for the last few years,” said Mr Moyle. Prices had not been good in deals with Iran since the war with Iraq began. “So, in fact the less that we actually send to that country, the better in terms of the losses involved,” said Mr Moyle. “But I would say the situation this year will be considerably improved.” Mr Moyle said that the Government still wished to withdraw its payment guarantee as soon as possible.

But because of the circumstances surrounding trade with Iran, the guarantee would apply this year. Also the Government might consider some further guarantee next year but to a lesser extent, he said.