FROZEN MEAT PROBLEM.

New Zealand Herald, Volume LVII, Issue 17482, 28 May 1920, Page 5

FROZEN MEAT PROBLEM.

END OF THE COMMANDEER, to is ' ' yc MARKERS AND SHIPPING. „J of to SPEECH BY V MR. MASSEY. J t ' pi "UP AGAINST A CRISIS." 1" 0\ far telegraph.—press association.] lc . P WELLINGTON. Thursday. w The Prime Minister attended the confer- as ;nce of producers this morning and spoke *° if the meat commandeer and its conclu- ? «on. They were "up against" a crisis, mid Mr. Massey, and he hoped they would b< be able to arrive at a satisfactory solution m if the problem with which they were J* faced. He read a considerable amount , if cabled correspondence which had taken place between himself and the High Com- m missioner and tlie Secretary of State on hi the subject of the meat commandeer. j* In one telegram, Mr. Massey said that q if the congestion at the London docks was. £ not relieved New Zealand producers would T suffer such conditions as to cause a finan- u: cial crisis in New Zealand, and he therefore requested the Imperial Government to arrange for a supply of insulated steam- „ ers. At the same time he urged that every ol effort should bo made to induco the Im- g' penal Government to extend the present " purchase arrangement to June 30, 1921. The Secretary of State replied that the i, Imperial Government had decided it was d unable to extend the meat contract. Then 0' tho Board of Trade reported that the price of tho mutton in Britain had been reduced to 9d per lb, and again the Imperial Government said it was unable to continue the meat contract to June, 1921. In another cablegram to the High Commissioner, Mr. Massey pointed out the injustice that was being done to Now Zealand by the preference being given to ships carrying meat from the Argentine, and he sent to the Secretary of State a cablegram stating that tho postion of affairs was causing considerable- anxiety in New Zealand. j! Mr. Massey read further cablegrams he [■ had sent to the High Commissioner. In J] answer to one message the Secretary of *• State said he had taken up the matter v personally among his colleagues and hoped 1 to be able to give a reply at an early 6 date. On May 28, Mr. Massey cabled to the High Commissioner stating he felt a considerable anxiety regarding the pros- . pects of the frozen meat trade. The New . Zealand stores were full to the utmost < capacity and even under the best shipping ; arrangements for the despatch of Imperial t meat there would bo serious congestion. , That, combined with delay in connection with the new season's output, would de- c predate the value of livo stock and would ( create serious financial difficulty. Only ( the provision of the greatest amount of , refrigerated tonnage would enable tho , position to be met. The Australian Output, , A recent Press Association cablegram ! from Australia stated that Australia had : been able to renew its contract with the ! Imperial Government. Tho High Com- ' missioner cabled to Mr. Massey that he ' could not get an official reply to the last , mentioned cablegram, but ho was informed ' unofficially that the Board of Trade had ■ not authorised an extension, of the Aus- \ tralian contract. Mr. Massey was ad- ' vised officially from Australia that the contract was to continue in force until the expiration of three months after tho ! termination of peace. Yesterday he received a cablegram from the High Commissioner stating that the Imperial - control over Home grown meat would cease on July 4, and they would have a freo market. "It was impossible to say," reported the High Commissioner, "what the effect of the cessation of control over Home grown meal will have as far as we aro concerned." There was, said Mr. Massey, a general impression that Government control in England kept up prices. That was not his experience. There was also an impression that the cessation of control would have tho effect of putting up prices. Very often it had the opposite effect. He noticed directly tho Imperial control ceased that prices went down, the reason being that up to that date the market had only been supplied with just sufficient foi its requirements. The High Commissioner's cablegram added that the ; consumption of mutton had reached the pre-war level. He was of opinion that the future depended largely on what was done in the meantime to keep the Imperial Government up to the requirements of the situation. He. coi.-sidered the present prices ruling for New Zealand lamb should be retained. Should the stocks of mutton be reduced the price should not weaken greatly. In a later telegram tho High Commissioner said he was informed by the Board of Trado that in regard to the congestion at the docks there was sufficient accommodation for arrivals only. One steamer was unablo to discharge at London. In a later telegram the High Commissioner said the Board of Trade expected to be able to provide 12,750,000 cubic feet of insulated shipping between July and November, equal to 4,200,000 carcases. He was unablo to get the names of the steamers. Imperial Government's Last Word. This morning, Mr. Massey added, he received ai> important telegram from 'he Secretary of State, who said His Majesty's Government felt bound to re-examine the situation. The amount of mutton in store was very excessive, and every effort was being made to deal with an abnormal situation. No ships were awaiting discharge through lack of storage Increased consumption was following on the substantial reduction in price. In spite of all that thoro was no reasonable prospect that the- consumption at Home could overtake the supply, and there was every prospect that the over supply of the market would continue well into 1921. " His Majesty's Government is, therefore, reluctant to increase its commitments by any purchase in respect of the 1920 21 season, which would only increase the difficulties in dealing with supplies," continued the message. " Purchase would, I in our opinion, only increase the difficulty ( likely to bo experienced in conducting tho , new season's operations. For these rea-1 sons His Majesty's Government does not . see its wav to depart from the position . of March 13. "We are up against it." said Mr. Mas- . sey after reading the cablegram, " and it ' is just as well to know what the position , is. The commandeer ends on June 30, , and there is not the slightest chance of [ having it renewed. It is just as well to know it so that tho best arrangements [ can be made, and T hope the best arrange- , ments will bo made." j The Shipping Available. ■ It was stated that at the end of ' December the Imperial Government would > have in store hero 3.000.000 carcases. By I that time the new season's killing would 1 j have commenced. Nobody could be cori I tain as to what ships would be available, i but ho believed that spare would be s available for from two to two and a-half s million carcases. I Mr. Massey added that since March, e 1915. the producers received on account 1 of Imperial sutmlies £138.000.000. and e there was £8,000,000 or £10,000,000 to i come. The commandeer was the best ar--0 rangement that could ever have happened e to New Zealand. They had now to attend u to their own business and get back to pree war conditions. f "Tho Government is not coing to let t the producers down," he added. (Hear, • hear.) "I have not had an opportunity e of putting a recommendation before the . Cabinet, but I know the opinion of my a colleagues, and they are all concerned in. - the welfare of the producer. I want you r to take the opportunity of meeting together !• and set up a Finance Committee and tell >t the Government what you want. When e we know your requirements to a reason- /- able extent the guarantee of the Governr rnent will be placed behind the producers until the Imperial meat 4a disposed of.

Applause.)* I do not think the Imperial, iovernment will insist on getting the last J arcase of meat out of the stores before >'c can send our own meat to London. believe they will allow part of our meat 0 be sent to London before their meat 3 totally discharged. I want to assure ou that we find ourselves in a difficulty. Ve are all producers, all interested in the .. >utput of our produce, and if this meeting f experienced men can suggest anything 0 ease the position and preserve the interest of producers the Government will ie quite willing to act up to it." (Aptlause.) The Prime Minister, in outlining the j losition as far as the Imperial Government iwned meat in stores in New Zealand was ' oncerned, after giving details of the ship- t ling arranged for and expected, said there j vould be meat in store in New Zealand i ,a at December 31 next equivalent 1 o 3,000,000 601b freight carcases, , Jus the. killings coining into the 920 -21 season. Up to that date ' ie believed the position would be i letter than what he had thought. Tho i neat in store would be reduced by De- j •ember 31 to 2,250,000 carcases. He bought that if some months ago the prolucers had asked the Imperial Government J o extend its control for the purchase of I neat beyond June 30 next that might lave been done. However, it was clear , t was not going to be done now. "But," ie added, "I am sure the Imperial jovernment is not going to let the New Zealand producers down. (Applause.) rhey have always Hen willing to meet is, and they will co' tinue to do that." In reply to a quest.on, Mr. Massey said ,here would be no objection, so far as he :ould see, offered to New Zealand meat *oing to the United States. "What Ido object to," he added, "is any meat trust retting a foothold in this country. The Now Zealand Government will place 3very difficulty in the way of that. There ;an be no objection to New Zealand meat being sold to America, but where I do Iraw the' line is against any mcat> trust jwning works in this country."