VALUE OF LEVY

Hawke's Bay Tribune, Volume XXII, Issue 36, 26 January 1932, Page 6

VALUE OF LEVY

FOR EXPORT OF FRUIT. INDUSTRY OF GREAT HELP TO THE DOMINION. “Apparently the levy of ljd a case on fruit exported under the Government guarantee system meets with the approval of the fruit-growing industry; it was decided on after consultations between the Export Control Board and the Fruitgrowers’ Federation,” said Mr. G. A. Green, of Auckland, to a Christchurch “Sun” reporter. Mr Green explained that for some years the Government had guaranteed 11/- a case on exported fruit. On one year only, that in which the general strike occurred in Great Britain, was the Government called upon to pay out under its guarantee, and that, of course, was due to the dislocation of business in England. The great value of the guarantee was that without it, underwriters, shipping companies, etc., would require freight and such like prepaid, because fruit was a perishable cargo involving big risks to shippers. But under the guarantee, fruit was treated as ordinary cargo, prepayment of freights not being required. The levy now imposed would be pooled against possible losses. It was hoped to accumulate a substantial fund, so that ultimately the industry might be able to stand on its own, and be independent of guarantees. The guarantee, of course, has been responsible for building up the export business after the war. Nearly 1,300,000 cases of fruit were exported last year. Even at an average of 15/- a case, it would be seen that the industry was worth about £1,000,000 a year to the Dominion, so that it was very important to establish it on a firm foundation. Being a bulk eargo it was of great value to the community and general trade, because of the employment it gave in handling and the handling charges involved. On a price of 15/- a case, the grower would only receive about 5/-, the balance going to other sections of the community. At 11/- a case, the grower would get very little more than 3/6. Diesussing this season’s prospects, Mr Green said that had it not been for the frosts in Central Otago, it would have been a record export season. As it was, there was a strong probability that export would be on an increased basis from last year.