THE H.B. TRIBUNE. MONDAY, FEB. 9th, 1920. IMPERIAL MEAT PURCHASE.

Hawke's Bay Tribune, Volume X, Issue 48, 9 February 1920, Page 4

THE H.B. TRIBUNE. MONDAY, FEB. 9th, 1920. IMPERIAL MEAT PURCHASE.

Some official figures published in a London “Daily Express” just to hand afford a means of comparison of the respective prices paid by the Imperial Governments for meat supplies from Argentine, Australia, and New Zealand. These were embodied in a parliamentary reply given by Sir Hamar Greenwood, Under-Secretary of the Foreign Office, just two months ago, and provided much material for press speculation on the amount of “profit” the Government had made out of home consumers. For us out here the chief interest in these data lies in the fact that they afford us some basis for making an estimate, though admittedly far from being a precise one, as to hqw far the' charwe .8 maintainable that, the Imperial Government, in making- its. purchases, favoured §outh American sellers in the matter of prices. According to the statement made by Mr. Greenwood the prices, in pence pe<. pound, agreed upon, in each case described as 'Tree on board,” were as follows

Argentine: — Ox beef, good average s|d. Ox beef, tair average bjd. Uow beef, first quality ssa. Mutton s|d. Australia: — Ox beef, good quality ...... 4jd. Cow beef, good 4#d. Mutton, wethers s|d. Matton, ewes sd. Lamb, good 6|d.

New Zealand: — Ox beef, prime sd. Cow beef, prime 4jd. Mutton, first wethers o|d. Mutton, first ewes 4|d. Lamb, prime 6|d. Lamb, first quality 6jd. The first disturbing factor in effecting a comparison of these absolute figures is of course, to be found in the different quality classifications that are adopted in the grauing of prides, to which must be added the admitted fact that, all-round, the New Zealand and even the Australian meat is of a higher standard of excellence and nutritive value than the -South American. Only an intimate knowledge of relative pre-w-» prices would enable the making of a' satisfactory allowance on these grounds. As against these items in favour of the Australian products we have to place, firstly, the dost of storage, actually delivery being made,* as we know in both the Commonwealth and the Dominion, not literally “on board” but “at store” the cost of storage until shipment, falling on the Imperial Government. As Sir Hamar Greenwood mentions the item of storage in the country of purchase a specially applicable to Australasia, -the inference, though not an absolutely necessary one, is that it did not apply in Soutn America. Then comes an item probabily more important still, the question of the relative cost of and delays in transport from the different countries of • purchase, ■an item which, of course, must go heavily against Australasia. Delays in stu,. ment, too, it has to-be rememberetf, and lengthy voyages mean a ven* substantial increase in insurance premiums while both on land and at sea, and also loss of interest on the payments made on delivery at the store, with greater chance of deterioration. Another item casually mentioned, but without giving any hint as to its weight, is that of export duty upon the supplies secured from the Argentine. It will thus be eoou that a good deal of detail information is needed before any close estimate can be made as to how far, if at all, the Imperial Government has. as our High Commissioner puts it “subsidized the. South American producer as against the Australasian.” , With regard to the question of the advisability of pressing for a renewal of the Dominion agreement with the Imperial Government, whether at current or at increased prices, there appears to. be considerable diversity of opinion amc-sg producers. On • the otb®? 7 hand, from what our Prime Minister has told us, the Imperial Government has shown no enthusiasm about the suggestion to secure, our meat for a further term, and anyone who reads the English dailies with any degree of regularity will readily understand how delighted any Government would be could they, without sacrificing the interests of . the people, get rid of a responsibility that’ brings them so little thanks and exposes them to so much adverse criticism. At present the British Go-' vemment is being harried chiefly by those who are loudly demanding the release of Imperia} meat from the admittedly congested stores at a lower price than has hitherto been charged. This,-of course, would be the easy and popular thing, to do, within limits of reduction ■in price which would not involve actual loss. But it may well be that British statesmen have a longer outlook than is generally Credited to them, and that they are anxious to maintain reserves against possible emergencies not foreseen by the multitude. It may be readily understood, too, that there is a strong desire to minimise further shipments from either North or, South America while the rates of commercial exchange are so strongly against Great Britain in both those continents, hitherto much to tne profit of the American monopolists and financiers, who, so long as they can- extract it, are not likely to volunteer better terms in this* respect. At this end our chief anxieties with reference to our next season’s meat output, as in respvst of our next wool clip,, are the questions, firstly, of getting it across the ocean to the European markets, ■and, secondly, the clearing of those markets of the competition of the heavy accumulations of stocks still held by the Imperial Government in both Britain and Australasia. In both these connections our producers are very much in the hands 01 the British Government, and however well disposed towards then, that Government should be, and probably is, there are obvious difficulties m the way of an arrangement that will operate fairly to both parties and without serious loss . to either. Then, sight must not be lost of the fact that the situation is very gravely complicaed by existing and prospective industrial troubles and obstructions on both sides of the world. It is quite probable that these loom even more largely in the eyes of those responsible ■ for seeing the masses of the. Old Country adequately fed than itt those of the fairly well-to-do Australian and New Zealand pastoralists responsible only to .themselves.

prices in the Old Country comment in the newspapers when the last mail left London shows a great variety of opinion, and that to an appreciable extent among classes, groups, and individuals whose material interests might at first sight appear pretty well identical. For instance, the National *Federation of Mqat Traders’ Associations (representing the English retailers) nad written to the. Food Controller, protesting strongly against the proposed decontrol of meat prices, ai present. They stated that under control all classes of the public had been able to obtain a fair proportion of home-produced meat at a reasonable price, whereas if control were removed the price of homeproduced meat would become prohibitive to all but the wealthy, ana this would cause unrest. The Scottish Federation of Meat Traders Associations, on the other hand, were contending that control was justified only- by -the shortage ot supplies and the increase of prices to the consumer, and that it should be abolished. The British Incorporr ated Society of Meat Importers were also asking for the immediate removal of control. And, finally, we have the jubilee confereuve m Edinburgh of the Scottish Chamber of Agriculture passing a resolution against the “decontrol” of meat, stating that they would regard the withdrawal of control as the breaking of a pledge.

While we thus have such directly opposite views expressed by producers and sellers of -meat,, the Consu&ers’ Council were declaring that any_ early “decontrol’’ . would simply mean handing Hie general public over to the mercy -ot the American Meat Trust. The council decided to place before the Trades Union Congress , Parliamentary Committee, the Parliamentary Committee of the Congress, the Parliamentary Labour Party, and the Labour Party Executive, a statement pointing out that the American Trust, who control 60 per eent of the imported beef supply of the United Kingdom, practically control also the South American as well as the * North American, meat trade, and that their Australasian interests are considerable. Any temporary glut the Council alleged to be dim to exceptional circumstances affecting Australian supplies. “Decontrol” might result in a fall in prices in a short time, but when this temporary condition was over the prices must inevitably soar upwards anil the consumer would be entirely at the mercy of the American Trust. “Our deliberate opinion,’? ’the Council stated,* “is that, if the Government ‘decontrols’, the price of inferior grades ot meat msy~ be reduced fpr a time, but all good meat will immediately* increase in price and find its way into the West-««nd; poorer distincts will get nothing but inferior'meat. At the same time, home-grown mutton will almost certainly rise by about 1/- per lb, owing to- the competition set up. Tins is the view of the retail' traders themselves.” With .all this variety of views expressed in advance, some idea- may be gathered, as to the almost impossible task facing a Government' a'nxious to do its best for the community as a whole, and still to retain the confidence of the electors.