Britain Serves Meat Quota Notice

Manawatu Times, Volume 59, Issue 182, 1 August 1934, Page 8

Britain Serves Meat Quota Notice

Fall of 20,000 Tons Basis of Restriction

Government’s Concern

(Special to Times.) WELLINGTON, Last Night. A total reduction of 20,000 tons on all classes of last year’s exports of meat to the United Kingdom will be the consequence of tlic requirements of the quota proposal presented by the British Government to the New Zealand Ministry.

Although details of the restriction proposition are not being disclosed in the meantime, it has been ascertained that the basis of the projected regulative treatment of New Zealand meat exports to Britain lies in the figures of the "Ottawa year”—the exports of the 1931-32 season—plus 5 per cent, of that total. It is again current lobby conviction that the margin represented by the percentage was won through the perseverance of the Minister of Finance (Hon. J. G. Coates). The terms of the British proposal were considered at a meeting of Cabinet last night, and to-day the Meat. Board is meeting to consider the situation and formulate recommendations tor submission to the Ministry. A conference between Ministers and representatives of the Meat Board will probably be held to-night. Apart from the effect of the industry and its returns of quantitative restrictions, the fresh political problem which is raised by the question of controlling the output of the farmer is greatly concerning the Government, which at the moment apparently is at a loss to determine how the initial stages of the plan can bp laid without creating dislocation, and unnecessary upsetment. A Commandeer?

In the opinion of ono who is loscly identified with the meat industry in ail its phases, lhere are fifty practical difficulties ahead of the Government once an attempt is made to apply the quota. The establishment of a commandeer of nil meat supplies in the Dominion appears to him to be inevitable if the scheme is to be made workable. "The good and the bad will be freely mixed under a pooling arrangement, but that cannot bo helped,” ho said. "The ciuota in any shape is synonymous with disaster and discouragement, but it may yet be possible for the Government to induce the Home authorities to agree to a spreading or levelling of the restrictions on all classes of meat, so that while, for instance, beef shipments are curtailed, the reductions applied of mutton, lamb, and pork will not be excessive. If that is arranged, some at least of our apprehensions will be dispelled.” If Cabinet adopts the commandeer principle it will not be necessary, in the view of those who study these questions, to establish a special organisation to carry the policy into effect. An extension of the powers of the Meat Board, it is contended, would adequately meet the position. Nevertheless, whatever the outcome of the present position may be, Ministers are not looking forward to tho reactions of an attempted dictation of what a farmer shall or shall not produce. In the meantime, at all events, the Government is not assuming full responsibility for the meat industry as it did in the case of the dairy industry; it is leaving the Meat Board in control. The Surplus Supplies. What will become of the surplus meat supplies in New Zealand once a plan of quantitative restriction on exports to the United Kingdom is brought into operation? This is tho question which, among others, is occupying the attentions of Ministers, the Meat Board, and the leaders of the industry.

One suggestion put forward to-day is that part of tlic problem can be met by distributing free meat to all the unemployed and othei’3 who arc in impoverished circumstances. The “Ottawa Year'’ figure for meat was 250,000 tons, and the 5 per cent, proposed to be allowed for shipments under the Elliot quota scheme will bring the total that may be exported for the six months from July 1 to 202,500 tons. As last year ’s total approximated 252,000 tons, the surplus for which at present there is no market in sight will be 20,000 tons, or nearly -15,000,0001 b. of meat.

As indicated yesterday, it came as a shock to tho Government to find that ali classes of meat would be included in the restrictive arrangement, because New Zealand’s principal line, mutton and lamb, has not exceeded the maximum which, it was understood, would bo followed as a result of the Ottawa Agreement. Tho Dominion’s exports of mutton and lamb in the "Ottawa year”—l93l-32—was 193,-US tons, whereas last year’s total was 11,349 tons less.

Ileal anxiety is felt regarding the position of pork and beef. The "'Ottawa year” beef exports totalled 150,530 quarters, although in the following year they increased by 235,533 quarters. Strong exception to this excess was taken by the English Stock Commission, which declared that New Zealand had exceeded its estimates by 00 per cent., while the Argentine also exported more than the agreed maximum. Fork exports from New Zealand have also heavily increased since the "Ottawa year,” the rise being about 157,000 carcasses annually. Thus beef and pork appear to be marked down for heavy interference. If the basis of restriction is to be the "Ottawa year” figures plus 5 per cent. —and there is no reason to doubt this—pork exports this year apparently to be restricted to a little more than half of those of 1932-33, and that beef will be reduced by about 115,000 quarters. Six Months Only.

Another important aspect is that the arrangement now being discussed is for a period of six mouths only, presumably because at the end of that time the next 'stock census and estimates of stock for home slaughtering will be taken by the British Ministry of Agriculture. These details aro required in connection with tho determination of tho import quotas. It is not considered here that the December census, on which the next series of quotas will be fixed, will reveal the need for much variation from tho June assessment, although if home production increases a corresponding restriction of meat imports may be expected. When asked last night if the Meat Board would be charged with the responsibility of controlling the. output of the fanneis, the Prime Minister (Et. Hon. G. IV. Forbes) confined his comment to tiic statement: "Obviously someone takes charge of exports, and wo arc discussing the matter with the Meat Board to-morrow. Wo cannot yet sec how it is to be done, but wo know it requires to be done.” Declining to release the final cablegram on which the consultations are proceeding, Mr. Forbes said the question, after all, was one of general agreement on the results of the conference between the representatives of the various Dominions and tho British Government. That had to be confirmed by the respective Governments, and before a decision was reached conference with the Meat Board was neecssarv.

Mr. Forbes* in response to further questions, admitted legislative action to enforce restrictions on meat exports would be neecssarv.

Australia’s Oversea Trade FAVOURABLE BALANCE. CANBERRA, July 51. The Commonwealth Statistician’s figures of oversea trade for tho year c-nded June 50, 195-1, show that Australia’s favourable trade balance was £38,525,000. Exports of merchandise were valued at £!)0,09S,000, and imports £50,707,000. Exports of bullion and specie were valued at £5,012,000 and imports £J.278,000. Exports showed a marked decliuc in June mainly because of tho decreased exports of butter and wool.