A LONDON COLD STORE?

Evening Post, Volume CXII, Issue 68, 17 September 1926, Page 8

A LONDON COLD STORE?

BUSINESS ISSUE

MEAT BOARD DELIBERATING

AN AID TO REGULATION, BUT

COSTLY.

In amplification of the earlier report of the speech at Masterton on Wednesday by Mr. D. Jones, chairman of the New Zealand Meat Producers' Board, it is made clear that -the board has not decided on establishing a cold store in London, but is considering such a proposal, and'has been doing so for some time. Reference to the report of the Wairarapa "Age" shows that the board is weighing the matter—which will, of course, involve heavy expenditure—in a purely business way; also, that an offer some time ago by the Port of London Authority to lease a store to the board was accompanied by the condi tion that the storage rates should not be cut. [The difficulty of such a stipulation may perhaps be measured in the light of a jeCent statement by Mr. J. S. Jessep (speaking personally), to the ef feet that though cold storage in Lon don is even more over-capitalised than in New Zealand, it yet maintains its inflation by means of excessive monopolydictated charges.] Mr. Jones, the "Age" reports, "dealt at some length with the question of storage overseas, and particu larly with the proposal that the board should acquire its own store in London. Mr. Jones stated that the London manager (Mr. Forsyth) was then on his way out to New Zealand bringing with him plans, particulars of cost, and the offer of a site for a cool storage establishment in London. Regulation of export, Mr. Jones went on to observe, had solved half the problem. It had to be considered that if a big cold storage establishment were put up in London and it was a white elephant, the board would be condemned. During the next six weeks, the board would have before it the whole of the facts relating to the project, and its members would make up their njinds in the light of that information. There was no use approaching these things from a sentimental point of view and saying: "I think we ought to have cold stores." It was purely a business problem. If it were going to pay, they would go into it. When he was in London some time ago, Mr. Jones stated, the Port of London Authority offered to lease the board a store, but it was a condition of the offer that rates should not be cut. That, of course, had to be turned down. Another point was that it would be of no use obtaining a store without obtaining an undertaking from the various freezing companies that the store would be used.. Reverting to the regulation of shipments, Mr. Jones said that in the early part of last season the board had things in hand to such an extent that New Zealand meat was going into consumption almost as rapidly as it arrived in Britain. That was an ideal state of affairs. On the other hand, a cold store in that case was going to give no return. This caused the board to hesitate and consider whether it was not better to concentrate on the regulation of shipment instead of going in for an expensive cold store. It had been urged that the board should open its own retail shop or shops in England. Most of the criticism in this connection was to the effect that New Zealand meat Iras being sold in England at too high a price, and that if the board had a retail shop it could sell meat to consumers at a more reasonable price. What would be the effect? Any lowering of retail prices would bring down wholesale prices. In his opinion the last thing they should do was to open a retail shop at Home to reduce prices. Then, again, there was the difficulty that a retail shop had to keep meat of all kinds. It could not sell New Zealand meat only and compete with' others. Another suggestion that had been put forward was that the grading system should be amended so as to modify the conditions relating to the export of light and heavy lambs. The board thought it would be very unwise to alter the whole system of grading on the experience of one season. Last season they sent Home far too many heavy lambs and there was in consequence a great difference between the prices of light and heavy lambs. This season, on account of the draught on the East Coast and other factors, the number of light lambs exported was very large and heavy, lambs met a ready sale. Alterations in the system to meet the troubles of a single season very often were not warranted. There was no doubt, Mr. Jones stated, that the English market was absorbing more and more light meat. There was always a market for a fair percentage of heavy lambs, but when this percentage was exceeded the market for New Zealand meat would suffer. Mr. Jones said that before long they would get regular returns of the meat in storage in England, but powerful vested interests were opposing this in novation, and getting anything through the British Parliament was a very slow process.