MEAT PRICES

Greymouth Evening Star, 26 October 1944, Page 2

MEAT PRICES

DEAL WITH BRITAIN

MR. FRASER’S STATEMENT WELLINGTON, October 25. Before the House of Representatives adjourned this afternoon the Prime Minister (Mr. Fraser) made, a statement on the meat agreement reached between the New Zealand and United Kingdom Governments. Mr. Fraser said that the question of the revision of prices paid to farmers for both dairy products and meat had arisen out of an agreement recently concluded between the two Governments concerning payments for our exports. The arrangements were not yet completed, but the British Government had intimated that, for the time being, prices for New Zealand meat should remain at the same figure as for the fourth bulk purchase, and the increase in price might be paid in a lump sum. Mr. Fraser said that he considered there has been unnecessary misgivings regarding the destination of moneys received from the United Kingdom for increased meat prices. The whole of such increases would be paid into the Meat Industry Stabilisation Account, and be. conserved exclusively for the industry, subject to such debits as were contemplated in the Government’s agreement made with the Farmers’ Federation on June 18, 1943. All additions to the Meat Stabilisation Account would continue as in the past, and no changes other than those already operative would be made against it, except with the agreement of the Meat Board. It was desirable, how-, ever, that both the Meat Pool Account and the Meat Industry Stabilisation Account should remain within the Meat Industry Accounts. In the event of the resources of the Meat Stabilisation Account being insufficient to meet charges against it, this arrangement would have to be reviewed. Mr. Fraser said that in considering this matter the Government had always before it the importance to the country as a whole of the maintenance of the policy of economic stabilisation. Representatives of the Meat Board were fully alive to the value of stabilisation to the meat industry as well as to the whole country. There was, moreover, a particular aspect of stabilisation to which great weight was given.' In the near future the settlement of land by many hundreds of returned men would be commenced. No greater nor more responsible task had ever faced any Government, and profiting by past experience the Government was determined that these exservicemen should not begin their life as farmers under the crippling handicap of inflated prices for stock and land. A second consideration which weighed with the Government was the need to maintain a balanced economy in various classes of primary production. Particularly it was desired that the increase in the price of meat should not lead to a changeover from other primary industries to meat. A third consideration .was that the negotiations with Britain were based on circumstances relating to a request by Britain for greater 0 supplies of meat, butter, and cheese, and on New Zealand’s part to an increase in the cost of imports. Finally, the Government had recognised that there had been some increase in sheep farmers’ costs of production. However, on the evidence available the finances of the sheep industry were in a reasonably sound position, even recognising that in some cases there had been some depreciation in the schedule in capital values. The Government considered that the increases in the meat schedule would be sufficient to encourage greater production and enable the accumulation of sufficient funds to maintain the pastoral industry on a sound basis in the immediate post-war years. With these considerations in view the Government had agreed to the opening schedule for the 1944-45 season giving approximate increases in lambs, wethers, and ewes each of one halfpenny per pound, quarter beet of 67- per hundred, and boner beef 1/per hundred. LOCAL MARKETS Mr. Fraser added that full information regarding the debits it was proposed to place against the Dairy and Meat Stabilisation Account, and also as to the purpose for which lump sums had been granted by Britain, would be made available to the joint committee set up to consider the debits to be allocated to the various stabilisation accounts. If it was granted that all increases from the sale of our meat were ultimately to go to producers, the point to be settled was by how much should they increase meat schedule prices for the season now opening. He »aid that there was a new rate on F.A.Q. cows for’which there had been no schedule previously, and in adjusting the schedule, due regard had been given to the need to increase the incentive to produce higher weights. The question of buying schedules for big meats

was receiving the attention of a committee appointed by the Meat Board and the Stabilisation Commission, and he was confident that a complete agreement would be reached. One of the difficult problems which arose out of the agreement was that of meat prices on the local market. New prices applied to export meat only, but a two-price schedule for local and export meat would be highly complex and probably unworkable. The Government could not, however, contemplate allowing local meat prices to rise to parity with the new export prices, because such an increase would seriously damage stabilisation. In addition, it would be unfair and unreasonable that the Government’s success in securing an increase for producers should result in a heavy additional burden on the community as a whole. Therefore, it had been decided to base all meat prices on the export schedule, and to reimburse from the Meat Industry Account the sum necessary to maintain present prices to the local consumers. It was estimated that this would cost not more than £400,000 annually, and this would be charged to the Meat Stabilisation Account. The Government had made it clear to the Meat Board that acceptance of the new price schedule was conditional on the acceptance of this policy. Mr. Fraser in conclusion said that the settlement reached would benefit the industry and the country, no\ only at the present time, but also in possibly more difficult days to come. An incentive was being given to the immediate Increase in production desired by Britain. Stabilisation, which was of paramount interest to exservicemen settling on the land, had been safeguarded, and the industry would be putting by a reserve which should enable it to face the future with a reasonable degree of confidence. Actual schedules were: Lamb: Down and Canterbury to 421 b., 9d; 43/50 lbs., 8-td; 51/56, 8d; crossbred, same weights, B’d, respectively; seconds, to 42 lb., 8-ld; over 42 lbs. 7|d. Wethers (North and South Island in that order): Prime to 64 lbs. 5 sid; 65/90 lbs., 30/8, 29/4 per carcase; second to lbs., 5-Jd, sd; 65/72 lbs., 28/-, 26/8 per carcase. Ewes, to 64 lbs. 3 5-8 d; 65/90 lbs, 19/4 per carcase. Beef (all weights): Ox, G.A.Q. 40/-; F.A.Q. 35/-; heifer, G.A.Q. 39/-; F.A.Q. 34/-; cow, G.A.Q. 33/6; F.A.Q. 28/6. All boner beef, whether ox, bull, cow, or heifer, 23/-.