THE MEAT LEVY

Manawatu Standard, Volume LV, Issue 87, 11 March 1935, Page 6

THE MEAT LEVY

EFFECT ON LAND VALUES. SIGNIFICANCE OF SITUATION. (Bv Telegraph.—Special to Standard.) WELLINGTON, March 11. The Government proposes to give the House of Representatives the opportunity this week of discussing the Imperial Government’s proposals for a levy on British meat imports, and the reply of New Zealand which has been caoled. It should prove to be one of the most interesting debates of the session, for members are already discussing the position with the greatest animation, the mortgage problem having, for the moment, fallen into the background. To secure an opinion from.,an experienced producer who has wide, ioioAvledge of the lamb and mutton jndustry, and of farm finance, th& dard’s” correspondent asked Mr JConnolly, M. 8., his views as to the practical effect of a levy upon the New Zealand meat producers. Mr Connolly had already worked it out in detail. “Take the effect in relation to whet can be called ‘one-ewe country at £8 per acre,” replied Mr Connolly, lhe production from that acre is to be levied, according to the proposal, to the extent of Is 6d, and if this is worked out on the basis of the capital value of the land, it means a reduction of 30s per acre. But if you take the valuation at current prices, the effect of the levy would be even more disastrous in reducing the net return from the acne.” “Put it in another form,” continued the member. “New Zealand, if it agrees to a halfpenny levy on its meat exports, is in effect called upon to give away the whole of a year’s production every ten years. It would be a smaller loss if we made the gift at the end 'of ten years, for we would have the use or the money involved for most of that time. This should make apparent what a drastic effect such an imposition would have on our export industries, and wliat a bad blow it would be to the whole country. One thing should inevitably follow, and that is _ a considerable reduction by Britain in our indebtedness, and in our interest payments to that country.” FAILURE OF NEGOTIATIONS. It was pointed out by Mr Connolly that to-day’s situation is all the more serious because it has developed after the Imperial Government had lieard New Zealand’s case fully presented. Yet, after all this, the proposals of the White Pa.per had come along, it would have been less alarming had it appeared before there had been an opportunity for discussion. “But, said Mr Connolly, “it is presented alter months of negotiations with New Zealand represented by those whom, the Government considered fully qualified to place our case. The failure to convince the Home authorities involves no reflection on our representatives, but it is significant that their strong case made little or no impression.” “I am going to make the suggestion,” added the member, “that New Zealand should enlist the help of His Excellency ihe Governor in the continuation of the negotiations. W r e regret His Excellency’s departure from the Dominion, for the agricultural and pastoral community in particular will feel his loss. Lord Biedisloe knows the wants and requirements of New Zealand, he realises the sparse nature of settlement in this country and the great need for further development, while at the same time, as one of the foremost of British agriculturalists, liis knowledge is broad-based. The Government should invite His Excellency/when he returns to England free from official responsibility to join the Prime Minister in the forthcoming negotiations, holding official status on the New Zealand delegation.”