MEAT AGREEMENT

Evening Star, Issue 22084, 18 July 1935, Page 14

MEAT AGREEMENT

SHADOW OF RESTRICTION REMOVED NO LEVY ON BUTTON OR LAMB SAVING OF £1,000,000 [Fxk United Press Association.] WELLINGTON, July 17. Confirmation of the meat agreement has been received by the Acting Prime Minister, Sir Alfred Ransom, from the Minister of Finance, the Rt. Hon. .). G. Coates, who is at present in London. “Following negotiations with the Imperial authorities by the Prime Minister, Mr G. W. Forbes, and the Minister of Finance in London, Mr Coates has concluded a mutton and lamb agreement with the United Kingdom and Australia,” said Sir Alfred. “ First, he has secured an undertaking from the United Kingdom Government that no levy or duty will be placed on our' mutton and lamb. We feared a levy or heavily restricted quotas. The news now cabled says no levy and a definite agreement for regulated expansion. It is good news. The shadow of restriction is lifted from mutton and lamb, and, we can only hope that the beef question when finally settled (and this is expected shortly) will be just as satisfactory.” Sir Alfred went on to state that the fact that there would bo no levy on mutton or lamb would mean a saving of over £BOO,OOO, or £1,000,000 in New Zealand currency, i “ Another favourable aspect of the agreement,” said Sir Alfred, “ is that the short-term arrangements are now eliminated. It is very gratifying to note that a beef agreement has been fixed which enables New Zealand to supply for the J uly-December 1935 halfyear 548,000 cwt of beef and veal. This is the amount which was shipped in tho same period of 1934, and represents an increase over 1932. New Zealand is in the early stages of chilled beef development; hence, although the amount of chilled beef (66,000 cwt) _ allowed for seems relatively small, is is very satisfactory. The details of the meat agreement so far to hand show that tho Ottawa principle has been preserved, and that New Zealand has secured since 1932 an expanding share of the United Kingdom market. It will still be necessary to restrict the export of certain glasses and cuts of beef and veal, mainly because the beef supplies 'have expanded faster than tho market can absorb them to cover the costs. This is, of course, the very reason for regulated marketing by the United Kingdom, but we should realise that our exports of beef are only about oneseventh of our exports of mutton and lamb. It will be seen, therefore that the main agreement tor mutton and lamb is more than satisfactory..

“The year ended June, 1932, the Ottawa year, was our peak year for exports of mutton and lamb to the United Kingdom. In 1934 3,554,000 cwt of mutton and lamb reached the British market from New Zealand, and for 1935 the total amount agreed upon is an increase on 1934 to 3,666,000 cwt, while the agreement for 1936 allows for a 10 per cent, increase ,on the 1934 arrivals. If we fill the maximum quantity arranged (3,950,000 cwt) it will be another record year for New Zealand in the export of mutton and lamb.” The agreement in respect to pork, said Sir Alfred, was still under consideration. ' N MANUFACTURERS APPRECIATE BENEFIT In tho course 1 of an interview this morning regarding the meat agreement arrived at in London, the dominion president of the New Zealand Manufacturers’ Federation (Mr James Hogg) stated that the results of the negotiations in connection with mutton and lamb would be received with great saisfaction by all sections of the community, and they, as manufacturers, appreciated the great benefit which the agreement would bring to tho primary producers of the Dominion. “ The fear of levies or restriction of exports has been very ' definite and real,” said Mr Hogg, “ and tho removal of that fear will undoubtedly lead to » feeling of greater confidence throughout New Zealand.

“It is satisfactory to presume that this arrangement has been made with Great Britain without any call for further concessions from the Dominion which would he prejudicial to us, or in any way offset the advantages secured. “ The results achieved reflect the greatest credit on the efforts of our delegation, and fully justify the sending of Mr Coates along with the Prime Minister to London.” CONCLUDING THE DETAILS MR COATES'S DEPARTURE DELAYED \ Fren Aiaociation—By Telegraph—Copyright LONDON, July 17. (Received July 18, at 10.5 a.m.) The necessity for concluding the draft meat agreement is expected to delay Mr Coates, who has cancelled his berth on the Berengaria, and will leave on July 20, catchjng the Pacific boat by hurrying across America. The draft includes the machinery under Which past practices will continue until the Empire Council decides on the alterations. The British representatives desire to ensure adequate supplies of lower grades for poorer purchasers, while suppliers, notably Africa - and South America, prefer tho excision of cheaper parts of carcasses. Another objective will be more uniform quality and weight, concerning which it is hoped that Australia will improve her regulations.