EXPORT POOL

New Zealand Herald, Volume LXXVI, Issue 23470, 6 October 1939, Page 9

EXPORT POOL

MEAT AND WOOL GOVERNMENT'S INTENTIONS UNCERTAINTY IN INDUSTRY No clear idea exists among meat* freezing companies, meat exporters and other exporters of . primary 'produets. of the full intentions of the Government in its purchase and marketing; scheme under powers conferred by tho Marketing Amendment Bill. The impression is current, moreover, that while the Government lias determined its policy it lias not resolved details and the extent by which it will ho applied. The commandeer or purcliaso of both meat and wool has been decided upon, but at which prices it has yet to determine. Whether the Government will take similar action over tho by-products of stock, such as pelts, hides and tallow, will presumably depend on purchases by the British Government. Theso commodities aro now being privately exported under conditional licences, which are expected to ensure that, all profits over the return that would have been made on prices and exchanges ruling prior to September 3, tho date of Britain's entry into the war, will fall into tho Government's export pool. The Government is particularly determined, apparently, to permit private trailers no benefit through the depreciation in sterling against the American dollar. Exporters' Difficulty In the meantime, exporters and other purchasing interests of primary products are unable to arrive at values for stock until the full buying intentions of the Government, and the prices it is prepared to pay, are announced. Stock buying operations throughout the country are therefore largely in suspense. Advices received from Wellington of information gained at a conference called by the Government with exporting interests have not greatly clarified the situation. It was addressed by the Minister of Marketing, the Hon. W. Nash, and the Minister of Agriculture, the Hon. W. Lee Martin, but their main purpose, it is stated, was to listen to suggestions from those present in the carrying out of the Government's policy. Most information gained by trade representatives appeared to bo gleaned from Mr. Naslrs replies to questions. This conference set up a committee, which will combine with a committee set up by the Meat Producers' Board to confer with the Minister of Marketing on'tlie Government's proposals. Use of Trade Channels According to information from the conference received in Auckland, the Government proposes to sell both meat and wool on an f.o.b. basis to the British Government. The New Zealand Government will pay f.o.b. prices to exporting interests, so that the usual trade channels will be utilised. It is pointed out that meat export companies send their representatives to farms and there draft stock, taking tliat required according to weights and other factors. They have thus an expert organisation and this could not be disrupted, by direct Government purchasing, without serious consequences. In any case the Government may not require all the products derived from stock. Mr. Nash is reported to have told the conference that he did not know the British Government's intentions regarding the purchase of tallow pelts, hides ami other by-products. If it required all or any portion of these, the Government would assume control in the same manner as for meat and wool. Government's Determination Answering questions, Mr. Nash is credited with the statement that even if the proportion required by the British Government of these products was small, control would still he exercised under the marketing legislation. The Government was not prepared to purchase part of the output of a product' based on the British price, and to permit exporters to obtain privately a higher price elsewhere. That would upset everything. He disagreed with suggestions that the difficulty could be overcome by proportionate purchasing for British requirements only under the control scheme from exporters. it was pointed out to Mr. Nash, it is also stated, that New Zealand has a considerable tinned meat trade in the Pacific. He was asked whether this would be preserved. Mr. Nash is reported to have replied to the effect that an endeavour would be made to preserve such trade, provided the meat was not required by the British Government. It was hoped as far as possible to maintain trade connections established with by-products.