A BETTER SALE

Evening Post, Volume CXXXI, Issue 102, 2 May 1941, Page 6

A BETTER SALE

The meat agreement with Britain has proved to be much better than was originally expected. Instead of 180,000 tons, which would have left1 two-fifths of our exportable surplus on our hands, Brifain has contracted to buy 248,000 tons. In announcing the contract, the Minister of Marketing did not explain the circumstances which had led to its being more favourable. If Britain has been able to take a more hopeful view of shipl ping prospects that will indeed be a cause for gratification. We want the British people to have the meat. But it would be going too far to read this into the agreement. What we do know is that the British Government has generously lightened our financial responsibility. There will now be a much smaller quantity to be stored and held at New Zealand's risk. It may be, however, that much of the meat bought will have to be stored. Therefore it would be wise to continue, as speedily as possible, the extension of cold storage. There will still be an unsold surplus which, as the Minister states, will present a major problem for the Dominion. Canning will assist the disposal of this surplus, both immediately (as canned meat is more easily shipped) and in the future, but we must be prepared for other remedies that will involve economic adjustments. Accumulations of meat now will not be saleable immediately and at full price after the war. There will probably require to be sacrifices so that the products may be Avithin the buying power of impoverished countries. We should, therefore, write down the national value of the. stored meat now. That means writing down our national spending power. If we do not take this precaution, but reckon instead on full payment for the. meat we shall find ourselves compelled to cut our spending power at an awkward time. A national loss (for it cannot be placed on the farmers' shoulders alone) appears unavoidable-, though now it is likely to be much smaller than was feared. Relief at the reduction should not cause us to disregard the necessity for facing the loss that remains.