STATE PURCHASES

Gisborne Herald, Volume LXVII, Issue 20164, 6 February 1940, Page 11

STATE PURCHASES

DOMINION HIDES ENSURING SUPPLIES PRICE RISE CHECK MINISTER’S STATEMENT (Per Press Association.) AUCKLANP, this day. A decision to purchase all hides to ensure tanning requirements and to prevent undue price rises, was announced by the Minister of Finance, the Hon. W. Nash. The basis of the Government purchase through the Marketing Department, said Mr. Nash, will be the ruling prices for all types and grades of hides as at September 1, 1939, plus an addition of 25 per cent. Arrangements are now being finalised for the appraisal of all hides offered for sale to the Government at approved points throughout the Dominion and the Department of Agriculture will provide expert appraisers to carry out the necessary work.

“Simultaneously with the Government purchase, the Marketing Department will make available the requirements of the local tanning industry by resale to individual tanners on the basis of the Government purchase prices. The balance of the hides will then be available for export, either by sale, by tender or auction to exporting firms or, alternatively, by sale overseas through the Marketing Department.

“It is proposed that funds received from the export sale at world parity prices will be pooled with the returns from the sales made to local tanners and the final net proceeds will be redistributed in the form of a pro rata bonus payment to all sellers to the Government at regular intervals.

“The purchase of hides by the Government will commence next week, and I propose to make a full statement early next week giving all the details of the procedure to be adopted and the announcement of the Government schedule of purchase prices covering all classes of hides. During the interim period from to-day until the appraisal commences all local tanners will continue to draw their supplies in the normal way through the usual sources with the addition of 25 per cent to the current prices they have been paying.’’