Meat -Position Still More Serious

Manawatu Times, Volume 59, Issue 181, 31 July 1934, Page 7

Meat -Position Still More Serious

An “ Ultimatum ” From British Government

Big Cut in Exports For The Next Six Mouths \ (Special to Times.) WELLINGTON, Last Night. The meat export crisis deepened to-day with the receipt from the British Government of what is described as an ultimatum for the enforcement of a substantial reduction in exports from New Zealand for the next six months. Although it is understood that the quota allowed New Zealand is above that provided for in the Ottawa Agreement, it will mean a curtailment on the volume of last season’s exports.

Apparently the position has altered materially since the publication of the British White Paper, which indicated that the Elliot schome for the imposition of a levy and the application of restrictions would not be adopted by the British Parliament until the nest session. It appears also that bacon and pork are now to be included in the quota proposals. It has already been pointed out that the United Kingdom could compulsorily impose restrictions on imported meat after the expiration of the Ottawa Agreement, but that the concurrence of the exporting countries was required before a levy could operate. In the last l'ew days many cable messages have passed between the New Zealund Government and the British Government in connection with the efforts of the later to establish a scheme on a voluntary basis. The Dominion’s position virtually rs that acceptance of the proposals is not a matter of choice, but of providing a schedule which would give her the best results in the circumstances.' With the co-operation of the Meat Board, which is meeting in Wellington to-morrow, figures have been taken out for all classes of meat, pork, and bacon, and these will be submitted to the Imperial authorities. Gravity Dully Realised. The gravity of the position in its new light is realised by the Ministry, which will be faced with fresh problems arising out of the restriction scheme. Not the least will be the disposal of the surplus supplies, which it is expected will involve a substantial measure of international readjustment within the industry, and probably a greater amount of control than is being exercised at present. In well-informed quarters the view is held that what is likely to happen will probably eliminate any prospects which previously existed for the restoration before the end of the year of the Public Service wage and salary reductions. One Minister volunteered the view to-day that the task facing the Government, as a result of the meat situation and the reactions to the latest developments, would be even more difficult

than was encountered when wages and salaries were cut. ISTo official announcement of the outcome of the negotiations is being made in the meantime, but when questioned to-day the Prime Minister (lit. Hon. G. W. Forbes) said that he had already made clear the sqrious view ho took of export restrictions. ‘‘ln my opinion,” said Mr. Forbes, “there is nothing more serious than a curtailment of production, and a restriction of supplies to the overseas markets. J It is disastrous to a young country which possesses such possibilities of development as docs New Zealand.” By way of brief example, Mr| Forbes mentioned the phenomenal development which had taken placo in tho production of pork, which presumably would be as greatly affected as mutton, lamb, and beef under the quota proposals. Level of 1931-32 THE NEW SCALE OF EXPORTS. (British Official Wireless.) RUGBY, July 2S. General agreement on tho principle that Dominion exports of meat to tho United Kingdom should be reduced to approximately the levels prevailing in tho standard year, 1931-32, on which the Ottawa meat agreements were based, has been reached at a conference in London between representatives of the British Government and the Dominion High Commissioners. Negotiations will now be carried on with a view to applying the principle during the six months which began on July 1, the day following the expiration of tho Ottawa meat agreements. A communique issued stated: “It was recognised that daring the period in which the Exchequer subsidy is being paid to the homo producer of beef, the United Kingdom Government would desire to arrange for a programme of imports of meat into the United Kingdom so that the value of the subsidy might, not be depreciated by excessive imports. It was arranged that the Governments concerned should exchange views and information as to the steps necessary to effect this purpose.”