PROFIT ON TALLOW

Manawatu Standard, Volume LXV, Issue 225, 22 August 1945, Page 6

PROFIT ON TALLOW

Efforts made by the Palmerston North City Council to secure payment of a further £2 a ton for tallow supplied to the Government (on which the Government made a profit of £8 a ton under its control' system for all supplied) were outlined to the council on Monday by Cr P. S. Larcoinb (chairman of tile abattoir committee). "On April 10 last the then city treasurer (Air J. P. McDavitt) advised the council that a statement had appeared showing the surplus from fallow sales by the Government lor the year ended July 31, 1943," said Cr Lar-

coinb. "'ibis surplus showed a profit of £8 a ton in New Zealand currency. Mr McDavitt reported that he had called on the Director of the Export ■Marketing Department with a request that portion of the £8 a ton profit should bo made available to the council. The director suggested the council could make application to the Minister of Marketing. The quantity of tallow purchased bv the division ironi August 1. 1940, to December 31, 1942, was G 63 tons lCcwt. Mr McDavitt was instructed to make application to the Minister of Marketing for £2 a ton out of the £8 a ton profit, this being considered the 'least the council should ask for. The Minister of Marketing replied that no retrospective payment could be made without reference to the Stabilisation Commission, and now we have the reply of tlio Director of Stabilisation. This reply is not satisfactory, because once more we are passeu along to another authority, the Economic Stabilisation Commission. The director does say, however, that our case has little merit because the council shows a profit in the boiling down department, and anyhow, if a loss had been made in the boiling down department, they would be averse to dealing with a retrospective application.

"Personally I consider the reply unsatisfactory, for, whether the council made a profit or loss in its boiling down department the fact remains that the council's tallow was taken at' a price which showed a profit of £8 a ton to the Government, or about 66 per cent." The Mayor (Mr Mansford) said that the position certainly was unsatisfactory. Recently the council had sought permission to increase the price of coke, but this had been refused. Yet the coke could have been sold to a distributor, and he could knve passed on the increase—possibly even a greater increase. The council now had been passed from one department to another, and had just cause for complaint. The council decided to place the subject in the hands of Mr J. Hodgens, M.P., for his attention with the Minister concerned.