MEAT POOL ACCOUNT

Dominion, Volume 37, Issue 3, 29 September 1943, Page 8

MEAT POOL ACCOUNT

Estimate Shows Big Credit Likely . OFFICIAL SURVEY The New Zealand Meat Producers’ Board reports that it lias recently obtained from the Marketing Department an estimate of the position of the meat pool account to July. 31 this year. Particulars of the various credits and debits in the account were presented at the annual meeting of the electoral committee of the board held last month, and the delegates present were supplied with explanations relating to the various items. The meat pool account was established at.the commencement of the 1941-42 season and the provisions relating thereto were the subject of a special clause in 'the purchase agreement 'between tha Minister of Marketing and the Meat Board in respect to the purchase of export meat by the Government for that season. , The official transactions relating to the first season (1941-42) show that the pool account for that season will finish up ;witli a credit balance estimated a. ’£1,018,079. In regard to the second sea’•son (1942-43), the accounts to July 01, 1943, show an estimated credit balance, at this date of £569,522. When everything is finalized for the two complete seasons it is estimated that the total credit balance will be not far short of £2,000,000. sit is emphasized, however, that the fixtures'arc estimates only, and are subject r to adjustment on the completion of the 'accounts. , , , , . The main items which have helped to •swell the funds in the pool during the (past year are: —(1) The increased slnp.ping space; (2) the additional price received for tallow; (3) the 5 per cent, additional price paid for slipe wool; and : (4) the shipping of frozen carcases or ewes and ewe legs. Credits and Debits.

The construction of the pool account 'has been fully explained in the 'board s ) annual reports and on other occasions. *The principal credit resulted from price 'increases granted by the United Kingdom Government arid by increases in the price of pelts at the time the . opening schedulue prices were fixed, which were held in order to provide, a fund tor tae main purpose of maintaining the value of ewe mutton at a fair and reasonable level. For the 194.1-42 season this item amounted to £1,781,532. The pool account was also credited with the crease in price obtained by the NewZealand Government from .the United Kingdom' Government arising from the sale of tallow. For the 12 months ended July 31, 1942, this item amounted to £125,520. In-addition there was a profit on canning beef killed during the period October 1, 1941, to January 17. 1942, of £9727. . The pool account is. debited with the assessed costs and liabilities incurred by the Government in respect of the purchase of export meat products, botn frozen and canned; and the erection and operation of emergency cool storage and canning plants. Against the latter item it is expected that at the end of the • emergency period, these buildings wi.l have a residual value which will come in as a credit in the account. The main debits were itemized as, lobs on canning meat, £605,367; storage, interest, insurance and sundry expenses, £93,61 < ; amount written off capital cost of emerg- ; ency cool stores, canning plant and builu- > ings, being one-third of the estimated cost of £590,000. £196,G66. The balance thus i arrived at shows a surplus for the IJ4I- - season, .as above-mentioned, ot £1.018,079. , ' -The interim accounts for the 1942-4 o seasen (to July 31, 1943) show a surplus on meat shipped up to that ..date ot '£900,982; surplus on tallow sales, I £360,000;' surplus on slipe wool, £130,000. The debits comprise, loss on canning [meat, £596,794; interest, insurance, storfage and sundry expenses; £28,000; onefthird of capital cost written off. £196,660. ITEis leaves an estimated surplus to July i 31, 1943, in respect of the second season, ’ of £569 522. - The capital liability of £590,000 is- ■ made up of £325,000 for cannery plant I’and buildings, and £265,000 for emerg?ency cool stores. • The agreement relating to the meat (pool account provides that, if at. the end [of the emergency period there is a sur|plns remaining in the account, the Govlernment and the Meat Board will consult i-to determine ways and means by which isuch amount can be utilized for the benefit of the industry. Should there be a deficit in the account at the end of the emergency period such deficit, will remain 'the responsibility of -the New Zealand Government. The termination of the emergency period shall be determined by the Government. The administration of tiie account is in the hands of a committee, comprising the following officials, or their deputies: General Meat Board; Primary Industries Controller; and Director of Export Division. Market'ing Department.