THE HIDE MARKET

Otago Daily Times, Issue 17871, 28 February 1920, Page 9

THE HIDE MARKET

DEPUTATION TO PRIME MINISTER.

(Po United Pbess Association.) AUCKLAND, February 27. A deputation of representatives of the leather industry, both employers and employees, interviewed (he Prime Minister to state their apprehensions regarding the effect of tho new hides regulations and the lifting of tho embargo. Mr O. A. Watts, secretary of the Boot Operatives' Union, said that the purposo of the deputation wan to ask the Prime Minister to reconsider tho decision made to alter tho regulations governing the sale of hides. It was felt that tho change would result in increased prices for leather and leather goods, an increase in tho import of such goods, and a consequent increase in unemployment among those engaged in leather industries. It was the opinion of those whom he represented that tho former regulations wero of general good to tho community and productive of harm to nobody. They wore asking, first, that tho old regulations _ should be re-established; second, that hides now held in store should be commandeered by the Government at tho prices paid to tho farmers for them, plus interest; and, third, that a fair profits board should be established to determine, among other things, the rates at which leather goods should bo sold to tho public.

Mr G. W. Coles, on behalf of the manufacturers, said they were faced with a serious position on account of tho increased price of leather. The day after the embargo on the sale of hides was lifted they wero given notice of increased prices for leather.

Mr Massey: I can only say these people are making a very serious mistake. The Government is not going to stand that sort of thing. Mr Coles said his assertion was a fact, nevertheless. The result would be increased prices to tho public. Tho claims made by Mr Coles wero supported by Messrs 11. Clark and A. Tronwith, for the tannery employees. Mr Rosser eaid they viewed with alarm the prospective increase in the price of footwear. Children could go barefoot, and in many cases were doing bo, but they had yet to sea workers going to their work wearing sandals or barefooted. Mr Massey: You do not suggest that, surily? Mr Rosser replied that it might not bo an exaggeration if boots went up in price by from 9s to 10s a pair. Mr Kosser also said that if tho export of hides resulted in a shortage it was going to cause much unemployment in tho tanning industry. He said, further, that hides were undoubtedly being hoarded. Mr Massey, in reply, said that for some time there had been a great deal of agitation among producers on the grounds that they wore not getting tho fair world's price for tihoir goods. It was the duty of the Government to encourage production. Tho country at the present time was in a very good position, both financially and commercially, but it must bo made even better, and the way to do this was by increased production. This would not bo encouraged if tho producers considered, as they had been doing, that they were not obtaining fair prices for tihoir products. It was also the duty of tho Government to encourage industries. They seemed to have overlooked the fact that no hides could go out of tho country until they had been offered to tanners. The timo might corne When the whole of the output might bo required by tanners. There might bo a way out of tho difficulty placed before him by the speakers. The matter was in tho hands of the Agricultural Department, and was being directed by Dr Reakes, who was a man particularly well fitted to handle it. The system just put into operation was working in Australia. Conditions there were not quite the same as here. Ho knew they had been faced with tho same difficulty, however, and tho system was working very well. In mitigation of it, ho beiieved that under it tanners would be able to get all hides they wanted. In fact, he had had assurance from them that they were satisfied with the arrangement. Tho old regulation worked badly. Australian buyers came hero for hides, which were taken over, turned into leather, and then made into boots, which wero exported to New Zealand. After paying freight, handling costs, and duty, they were under-selling the New Zealand mado article on tho local market. Answering olv jections, Mr Massey said: "I can prove it, and if I do not prove it I will do away with these regulations."—(" Hear, hoar.") Ho undertook to look closely into fTie matter of the price of boots. Ho said, howerer, thai these matters took timo, but when ho returned to Wellington he would give thorn his full consideration.

la regard to allegations of hoarding, Mr Massey said that the Agricultural Department kept a Tecord of every beast that was slaughtered. Dr Reakes had assured him that full returns of hides liad been obtained, and ho was satisfied that there was very little hoarding. The statement had been made that there were £1,000,000 worth of hides being 1 hoarded. H« had noted the name of the man who had made it, and had asked him for full information, so that the department might investigate. Very many exaggerated statements wcro being made on the subject. He did not think that there was much danger of tannery employees being thrown out of work. The Government did not want to dp any injustice to any industry, but, on the* other hand, the interests of producers must bo watched. Mr Watts asked whether the benefit of the increased prices in hides would go to the small farmer, and not be confined only to tho squatter and free-zing companies, with their wealthy shareholders. Mr Mnssey said he believed so. It must be remembered th.it, at any rate Sift far as this end of the dominion was eoncerned, the squatter was non-existent. This was the place of small holdings, and. so far as the past year had been concerned, the movement had all been in the direction of subdivision. The whole of the requests placed boforo him would bo remembered, and the position and working of the new regulations would be watched very carefully with a view to the rectification of any injustices that might arise.