3 per cent Reduction On Dominions’ Supplies

Manawatu Times, Volume 64, Issue 41, 18 February 1939, Page 5

3 per cent Reduction On Dominions’ Supplies

FOREIGN IMPORTS DOWN 10 PER CENT United Press Association.— By Electric Telegraph.—Copyright. LONDON, Feb. 16. Tn the House of Commons Mr Oliver Stanley, President of the Beard of Trade, announced that “In order to safeguard the stability of the markets,” imports of frosen mutton and lamb from Australia and New Zealand will be 3 per cent, below last year’s imports. From foreign countries they will be 10 per cent, less than the present quotas. Mr Stanley added that the decision resulted from the failure of the Empire Meat Council to agree to the current year’s restrictions of the imports necessitated by the very low prices realised last year for home-produced meat. Increased home production, he said, had not been accompanied by a fall in imports. A further increase in home-produced mutton and lamb was expected during the current year, yet cold-storage stocks were abnormally high.

Mr Stanley said that the Government had advised Australia and New Zealand as to the extent of the restriction, which might necessitate alterations in the shipping space already booked. The Meat Council was continuing to function and would -watch the effect of the restriction on the market # Mr. Tom Williams asked if Mr. Stanley was satisfied that the restriction of imports would bring an increase in the prices of British mutton and‘lamb. He pointed out that the restriction of beef from Australia and the Argentine had not helped the prices of home-produced beef. Mr. Stanley replied that the Government believed that the restriction of. mutton and lamb would benefit the home producer. Restriction, he said, was necessary to prevent an obvious glut. There had been a decline in the prices of home-produced beef, but it would have been more serious if no attempt had been made to regulate imports. Questioned regarding the necessity for large reserves of frozen meat in •wartime, Mr. Stanley said that the Government thought the best reserve was a flourishing sheep and stock inciustry in Britain.

Exports of mutton and lamb from Australia and New Zealand to the United Kingdom have hitherto been regulated by agreement between the Governments of the three countries. In 1635 British imports of mutton and lamb from New Zealand were limited to 3,667,000 cwt. and from Australia to 1,851.000 c wt. For 1936 the quotas were at 1,750.000 cwt. for Australia and 3.900,000 cwt. for New Zealand. Provision was made for slight modifications in these figures, and later, in view of an improved price position, it was agreed that New Zealand should be entitled to ship an additional 110,OOOcwt., and Australia another 50,000. For the calendar year 1937 New Zealand's export of lamb and mutton fell short of the oermitted quota, there being only 862,000 cwt. of lamb and 2,741,000 cwt. of mutton, a total of 3,903,000 cwt. The quantities of beef imported into the United Kingdom have been agreed upon from year to year through the Empire Beef Council. In 1937-38 the agreed quantities were: New Zealand 565,500 cwt. frozen and 375,000 chilled; Australia 1,730.000 frozen and 565,000 chilled. Argentina's allocation for 1939 was not to be less than 6,590,000 cwt. of chilled beef and 124.600 cwt. of frozen beef. Argentine beef is subject to an import duty. New Zealand is the largest individual exporter of mutton and lamb to Great Britain, supplying 28 per cent, of the market with Australia supplying 14 per cent. Details of percentages of Britain's mutton and lamb supplies are:— per cent. From New Zealand 28 From Home-grown 47 From Australian 14 From South America .... 10 From Others 1 Beef exports by New Zealand by Great Britain are relatively small, the market being supplies as follows: per cent. From Naw Zealand .... 4 From Home-grown 57 From South America .... 30 From Australia 8 From Others 1 PRODUCE FREIGHT RATES NEGOTIATIONS FOR RENEWAL OF CONTRACT Per Press Association. AUCKLAND, Feb. 17. After four years’ absence from the Dominion, Mr R. M. Campbell, economic adviser to the New Zealand Government in London, arrived by the Monterey to-day. He has come to New Zealand in connection with the periodical revision of freight rates for the Dominion's primary produce exports. Negotiations for renewal of the freight contract would be held in Wellington shortly, he said, between the Government and produce organisations on the one hand, and shipping lines on the other. The contract covered all refrigerated produce, whether the rates would be changed depended on the results of the coming discussions.