The Gisborne Herald. WITH WHICH IS INCORPORATED "THE TIMES.” GISBORNE, WEDNESDAY, FEB. 26, 1941. EXPORT OF MEAT

Gisborne Herald, Volume LXVIII, Issue 20490, 26 February 1941, Page 6

The Gisborne Herald. WITH WHICH IS INCORPORATED "THE TIMES.” GISBORNE, WEDNESDAY, FEB. 26, 1941. EXPORT OF MEAT

According to the Australian assistant Minister of Commerce, who is at present visiting New Zealand, the meat export restrictions imposed by the' Commonwealth Government are far more severe than anything yet applied in the Dominion. On the face of it, the New Zealand producers might appear to have good reason to congratulate themselves, but this ques-' tion is one in regard to which it is imperative that a long view should be taken. Some of the farmers in this country have already learned to their cost the folly of grasping at what appeared to be immediate benefits without looking ahead to understand the probable consequence!; of the scheme which they were induced to adopt. It is to be hoped that history will not repeat itself in connection with the plan now adopted for the war-time disposal of meat. The crux of the present situation is that the necessity of diverting shipping to other zones has made inevitable a reduction in the quantities of meat which can be exported to Great Britain. The problem then arises as to how best this reduction can be effected. Australia'has faced boldly up to the position and imposed severe restrictions on killings but New Zealand has adopted a temporary expedient in the hope that, sooner or later, the problem will solve itself.

On the outbreak of war, the British Government contracted to purchase on very favourable terms all of New Zealand’s surplus meat. The original contract, however, is now open to revision and negotiations have been proceeding for some time on the question of payment for meat that might be purchased on behalf of Britain but not shipped. In the meantime, the Government has made arrangements for killing in New Zealand to proceed much as usual, the New Zealand Government accepting responsibility for payment in the event of the meat remaining unshipped after a certain unstated period. This means, in effect, that the interests directly concerned are to be protected against any loss arising out of the shortage of shipping. Here there is,a variation of Mr. Nash’s famous scheme of “insulation,” but the fact which must always be borne in mind is that the people of the Dominion are accepting a liability which might become very real and extremely onerous. The production and preparation of meat for export is to be encouraged although it is known that the export market, temporarily at least, is to be severely curtailed. This procedure might result in jnillions of pounds, worth of meat accumulating without any real prospect of being sold and the question to be considered is whether the Dominion is justified in taking such a gamble.

Australia has faced the problem in a different, and much more sound, manner. Already it has been decided that 16 types of cheaper grade meat will not be accepted for shipment overseas. In addition farmers are being encouraged not to increase the production of types of meat for which there is no export market. This means that Australia is concentrating on the production of those lines which are most profitable and for which sufficient shipping space is available. New Zealand, by way of contrast, is continuing to fill its cool stores with every type of meat except heavyweight mutton. The advantages of the Australian system are obvious. There, the authorities are not hesitating to face up to the situation boldly and to effect the adjustments which are demanded by it. This procedure may involve greater immediate hardship, on the producers, but at least it will result in the maximum value being obtained for such meat as is killed and shijiped and there will be no risk of vast quantities of unsaleable meat being accumulated with the possibility that sooner or later it will have to be destroyed. This is the danger that is inherent in the policy of expediency that is being adopted in New Zealand and it is to be hoped that the Government may be persuaded to reconsider the whole question.

It was never more necessary than it is to-day that the economy of the Dominion should be restored to a sound basis, Seldom before have the finances of the country been in a more critical state and never in the past has industry generally been so economically unsound. The problem of marketing after the war may be even more difficult than it is at the present time and for this reason it is imperative that nothing should be done which might serve to aggravate the situation. So far as meat marketing is concerned, the Government is gambling on the situation righting itself, hut what if it docs not? What is going to happen to the vast quantities of meat the production of which has been deliberately encouraged and for the payment of which the Government has assumed the liability? It is true that the farmer will be saved some immediate

embarrassment, but it is possible that the procedure now adopted may ruin his industry for many years to come. The alternative is to face the situation as it exists, to make whatever adjustments are demanded, and to ensure that when conditions do return to something like normal the farming industry will be able to take full advantage of them instead of being probably crippled by a short-sighted policy which may well undermine its very foundations.