Hide Control; Mash Accused of Breaking Promise

Northern Advocate, 10 February 1940, Page 4

Hide Control; Mash Accused of Breaking Promise

[Special to “Northern Advocate ”] WELLINGTON, This Day. In a letter sent to the Minister for Marketing (Mr Nash), strong objection for several reasons to the plan for State purchase and marketing of hides was expressed by the Dominion president of the Farmers’ Union (Mr W. W. Mulholland). Mr Mulholland claimed that the scheme places an unfair burden on farmers and contravenes a definite promise made by Mr Nash. Mr Mulholland challenged the principle that farmers should be required to subsidise other industries by supplying them with their requirements at lower than a parity market value. Reduce Farmer’s Return. This scheme was actually intended to induce the farmer’s return, and was a violation of a definite promise that the Government would not control commodities which were not purchased by the United Kingdom Government. It was a further violation of a definite 'statement to a deputation from the Dominion Executive of the Farmers’ Union on'November 2, that the war would not be used as an excuse for the extension of Government control of the marketing of primary products. “I hope that the proposal will be very carefully reconsidered before you place me in the position cf having to regard the promises of a Cabinet Minister as being unsubstantial,” Mr Mulholland wrote. N,o Need for Control. “It is easily possible, without any extensive marketing scheme, to secure

the full requirements of local tanners, and representatives of the Farmers’ Union have offered to place tanners in a better position than in normal times —to give them first refusal of all hides with the opportunity of picking those that they desire to take. “If you are determined that the farmers must supply local requirements at below their true value, it is easily possible without any extensive control, by simply imposing a levy on hides, by which tanners could be reimbursed the amount which their hides cost them above the price at which it was determined that they should be supplied. “This would make entirely unnecessary the expensive and complicated organisation which has been suggested. Existing Distribution Channels.

“I would remind you again of your definite promise that existing channels of distribution would be maintained, in order that they might be in a position to function when control is abandoned at the conclusion of the war, and would point out that the operation of the suggested scheme would inevitably destroy most ot those channels and would violate still another of your undertakings. “I can assure you that in the attitude I am presenting I have the very strong support of my organisation.”

A memorandum issued by the Farmers’ Union set out the full history of the hides negotiations and stated: —■ A free market for hides would mean an advance of 11/6 on a 7501 b bullock. The extra cost of leather on a free market basis would be about 1/- a pair of shoes, or the cost of a dozen cigarettes or two pints of beer.

The Minister for Finance (Mr Nash) passed through Whangarei by car today after a tour of the North. Yesterday he made his first visit to Dargaville as a Minister. He received several deputations there.