FROZEN MEAT

New Zealand Times, Volume XLVII, Issue 10846, 11 March 1921, Page 3

FROZEN MEAT

HIGH FREIGHT OATES

I-RIME MINISTER’S STRONG PROTEST. “EXTREMELY DISAPPOINTING." Further communication lias between the i'lime Minister and the Imperial authorities with leference to the rates oi ii eight on frozen meat. Un February 24tli, IU2I, Air Massey cabled to the Aligh Commissioner as ioljows :—“With reitrencfc to your telegram ot February 23rd regarding meat freights notwithstanding explanation I am strongly of opinion that rates of ireigiit quoted in your telegram of January sth should be "regarded as definite commitment, and that freight on all shipments since should be at those rates, which were announced a few- days after opening of freezing morks for season’s killing. Full reliance is placed by producers and operators on official statements of this nature, and impossible situation would arise if this notification was not honoured by Ministry of Food. Present outlook here is - extremely bad, especially as regards marketing of beef and mutton, and it reduction of freight is not made market for these products must collapse, with result that not only will producers suffer heavily but shipping companies must necessarily bo seriously affected. In my opinion it is essential to the well-being of the Dominion that chipping rates for pi educe be reduced not only to • figure stated in your telegram of January sth but to still greater extent. Heavier class sheep, especially, is uheady practically worthless for export in consequence of High rates of freight ana charges. Reduced cost bunker coal alone should enable shipping- companies to reduce their rrtes. Treat matter as one of extreme urgency."

"RELIEF ABSOLUTELY NECESSARY" And at his request the GovernorGeneral sent a similar cable to the Seere tary of State for the Colonics, adding—

"An additional disability which is having far-reaching effects lies in the totally inadequate quantity oi refrigerated shipping which is allocated to the New Zealand trade for the present and immeualeiy succeeding months. Consequent i pon this shortage of shipping much of the frozen meat already produced has missed the best market and moreover British buyers largely as result of uncertainty as to time of delivery are entirely refraining from making any forward purchases, thus seriously embarrassing producers and freezing companies tl rough inability to realise on stocks already in store, and through having to finance these stocks without any certainty of when they can be realised. This again is operating detrimentally to Dominion finance as a whole which is now in a position requiring most careful handling. It is earnestly requested that you will take such steps as will afford the relief which is daily becoming more absolutely necessary in order tc, avoid a most serious i'nancial position in the Dominion." "INDUSTRY MUST COLLAPSE." No replies being received, Mr Massey cabled the High Commissioner on March s‘.h and again ou March Sth, pressing for a reply, stating:—"l hope you will he able to arrange for reduction rates of freight on meat exported to United Kingdom. * Present charges, including slaughtering, freezing, insurance, exchange, etc., amount to over 4d per lb on mutton, as against ljd pre-war. If present rates continue industry for mutton, and beef must collapse." COMPROMISE PROPOSED. The following cable, dated. March 7th, has now been received from the High Commissioner:— "Meat freights.—With reference to your telegram of February 25th, have made representations and also personal interview with Ministry of Food, who suggest reply as follows : —Begins Ministry’- of Food states that shipowners unwilling to accept less than contract rate of life per 40 cubic feet, contending that reduced cost of coal here is more than balanced ‘by high price of coal in New Zealand; lack outward cargo and loading delays in New Zealand. If freights given niy telegram January sth were conceded private produce would be carried at a serious loss to Imperial Government and. lower rates than .Imperial Government. meat. Ministry points qut no guarantee igas given that rates would not be raised, and contend that it would hr© unfair to saddle Imperial Government with loss in consequence having Slven expression to an anticipation which as not been fulfilled owing to circumstances which could not have been fore* seen, i.e., that poundage rates quoted would not bring in equivalent of hire money. All parties having acted in good faith Ministry of Food proposes compromise, namely, that rates originally announced by steamship companies on •ti&sia of mutton lad per lb, plus 10 per cent, shall operate on all shipments made and to be made up to end of control over space by Imperial Government. Refer to your telegram of August 4th. Ministry of Food points out this course will give shippers as compensation surrendering claim to rates mentioned an my telegram of January stli for a portion of the period not only advantage of lower rates than those quoted for March-April, but of leaving rates of freight on the lower basis on resumption of commercial relations with shipowners. On hearing that you will accept this proposal Ministry will telegraph instructing steamship I companies Up withdraw March-ApriJ rates in favour of rates on basis of mutton 13d, plus 10 per cent. In. the alternative Ministry of Food feel compelled to retain March-April rates except |in eaees were c.i.f. sales have been effected on basis of lower rates. I have pressed for concession of January ;15th rates in cases where commitments have been made in addition to reduction above proposed, but without success.

OFFER ENTIRELY INADEQUATE. No reply has yet been, received from the Secretary of State for the Colonies, and yesterday, at the request of the Prim© Minister, His Excellency forwarded him a cable stating:—"This offer (transmitted by the High. Commissioner) is entirely inadequate for meeting the serious position existing. The New Zealand Government had, through the High Commissioner, requested that an already announced and withdrawn rate based on a primage of five per cent, less than that which is now offered as a compromise should be established and had further stated clearly that a still lower rate was really necessary nndor the circumstances. The position existing in the Dominion was fully set out in my cable of February 27th, and it has since become accentuated to such an extent that the New* Zealand Government feels compelled to state its opinion that the line of action adopted by the Ministry of Food in this matter of freight rates is seriously damaging producers. The High Commissioner advises that the Food Ministry states that an additional five per cent, is added to freight rates to cover oost of administration and dead freight, thus making it appear that in effect New Zealand producers uto sad* died with His Majesty's Administrative charges and with .extra running costs of shipping consequent upon shipowners being unable fill nonrefrigerated space. The New Zealand Government feels confident that His Majesty's Ministers cannot be fully cognisant of the extreme hardship being inflicted upon the Dominion, and respectfully requests that the facts of £he position, be fully gone into and that the urgently necessary relief be afforded to producers in the form of an adequate reduction in the freight rates controlled by His Majesty’s Government." At the same time the Prime Minister cabled to the High Commissioner as follows : "With reference to your telegram of

March 7th. —Offer mad© by Ministry of Food is extremely disappointing and in view of seriou< pnsitfou which has developed a cubic it? being dispatched by 'His Excellency the Governor-General to the Secretary of State for the Colonies a * copy of which l shall be glad if you will obtain from the Colonial Office."