PRICES OF HIDES

Dominion, Volume 34, Issue 189, 8 May 1941, Page 11

PRICES OF HIDES

Committee’s Work Of Equalization

ANNUAL REPORT

The first annual meeting of the Hides Committee, set up under Emergency Regulations, <1940, to equalize the export and the standard domestic price of hides, was held in Wellington yesterday, the chairman, Mr. A. P. O’Shea, presiding. “The number of hides and calf skins Which have come under review in the transactions recorded in the office, is just on 1,000,000, and the cost of administering the scheme is slightly less than one-third of a penny a hide, which means less than one-hundredth of a penny per 1b.,” said Mr. O’Shea. “That we have not asked for too much money from the owners of hides is demonstrated by the balance standing' to our credit at the end of the year, £153 17/10. “The work of this committee is very little known, which indicates that we have done our job unobtrusively and efficiently. I have been gratified by the attitude of members of the committee. There has been a spirit of forebearanee and readiness to reconcile conflicting interests which might well be an object lesson to the rest of the Dominion. In almost all cases our decisions have been unanimous. Public Co-operation. “There have been one- or two instances where people have tried to beat the scheme, but these have been very few, and in most cases there has been shown a real desire to make the committee function. I believe that one of the reasons for this is that the work of the committee is entirely voluntary, and members have fully responded for the sake of the work itself, and not because of any reward attaching to it. “In the future we shall probably have to reconcile widely divergent viewpoints, but if the same spirit prevails as has previously existed. I do not believe there will be any trouble. There has been little interference with ordinary trading conditions, which will be of material Advantage to the Dominion when the war ends, for exporters have had their overseas connexions preserved.” Mr. O’Shea praised the work done by the secretary, Mr. L. McCartney. He concluded: “While in another capacity I have had many differences of opinion with the Hon. Mr. Nash, he has given us every assistance, and, as chairman of the Hides Committee, I appreciate very much indeed his help to us.” Secretary’s Report. Submitting the first annual report and statement of equalization fund covering the period from the inception of the committee on March 8, 1940, to March 31, 1941, the secretary, Mr. McCartney, said: “An interim equalization levy of 10 per cent, on the value of all hides for export was .fixed at the outset of the operations of the committee, pending full consideration of the exact amount of levy necessary for equalization purposes in terms of the regulations. The amount of the levy has been varied from time to time in accordance with variations in the f.o.b. export value of hides to which the levy relates.” The amount of levy payable was calculated on the weights invoiced to overseas buyers and such weights were declared on the Customs Department export entries. .lust after March 31, 1941, it was found necessary to increase the levy to the following figures:—Ox and cow hides, Jd.; bull hides, 3-Bd.; yearlings, Id.; calfskins (other than freezers), 3d. a lb. This increase was the result of heavy claiming of hides by tanners and an increase in the export values. 'Widening of Markets. When the committee began to function, the export of bides from New Zealand was confined to the United Kingdom and to Canada, but when, during the second half of June, 1949, the overseas markets declined suddenly below standard domestic prices, the Minister of Marketing agreed, to allow the export of hides to the United States of America and Australia, and the widening of export markets which resulted was of great value to the New Zealand producers. From the last week of November, 1940, export prices began to rise steadily and about the middle of March a good demand developed from Canada, United States of America and Australia, and today there was a steady market. When export prices fell below standard domestic prices it was found that some freezing companies and exporters were not. Having their hides so freely claimed by tanners as were others, and in consequence were placed at a disadvantage. To meet this situation an extension of the powers in the regulations was necessary to enable the committee to equalize standard domestic prices and export prices not only when export prices were above standard domestic prices, but also when export prices were below standard domestic prices. These new regulations were gazetted on December 24, 1949. In the meantime, an upward movement in the market had again brought export prices somewhat above standard domestic prices, and it was not necessary to pay an export bonus for equalization purposes. Statistics and Finance. The ' following table showed the number of hides claimed by tanners and the number freed for export under the regulations:— leaf- CaltOx. Cow. Bulls, lings, skins. T “ c n iaims 110,723 181,958 2,801 41,035 29,400 Hides freed port . 1*28,060 335,010 34,953 38,371 73,b17 Totals 217,783 517,808 37,754 79,406 103,023 The levy received from H.M. .Customs, less 2 per cent, collection charge, amounted to £16,793; claims paid to tanners, freezing companies and exporters amounted to £15,533, and administration expenses to £llO6, leaving a cash balance of £153. Estimated levy due amounted to £5200, and estimated claims not yet completed or awaiting payment, £3837, leaving an estimated balance to be collected of £1363. The total estimated surplus was therefore £1416.