SALE OF SHEEPSKINS

Otago Daily Times, Issue 24733, 9 October 1941, Page 9

SALE OF SHEEPSKINS

j EXPOSITION BY CONTROLLER ADDRESS TO FARMERS' UNION VOTE OF CONFIDENCE PASSED An informative 'exposition of the functions and operation of the Sheepskin Control was given to the monthly meeting of the Otago Provincial Council of the New Zealand Farmers' Union yesterday by the New Zealand controller, Mr R. C. Burgess. The meeting was keenly interested in Mr Burgess's review, and carried unanimously a motion of "absolute confidence" in him in his capacity as controller. Mr Burgess dealt with his subject under four headings: A definition of the control, how it carried out its duties, prices, and the relationship between it and the producers. He defined the organisation as the buying agent for the Department of Marketing of the skins from sheep and lambs sold on the domestic market, other than export rejects, and the manager of the producers' "pool" of the proceeds from the skins handled. | Ud to the stage of appraisement the system of marketing was the same as that in operation before the. war. Dealers, broker-dealers, and brokers all operated as previously, and the buying was by appraisement from the brokers. Prices were fixed each three months under the sale agreement with the United Kingdom, and a copy of each new buying schedule was sent to all branches of the Farmers' Union, brokers', and master butchers' associations.

Packing to f.o.b. was done by contract with the export firms, which did this work before the war, and fellmongering was done by contract. As far as possible, fellmongers were supplied with quantities much the same as those which they handled before the war. The tanners who took pickled pelts before the war were supplied with their normal quantities at prewar prices, plus 25 per cent. The Costing System

"Every line of dried skins, graded and packed for f.0.b., bought from a broker is costed under the charting system," Mr Burgess continued, " and full and balanced stock records are kept. Skins fellmongered are costed each month from the monthly returns of resultant wool and pickled pelts which fellmongers are required to send in. From the statistics now built up by the control, an endeavour is made each three months to return to the producer the full proceeds of the skins, less the cost of the control. This cost is actual, and not on a contract basis, as has been a fairly general impression. The original estimate was that it would cost Id a pound of dried skin weight to f.0.b., but it was found in practice that it worked out at about ,85d a pound. The producers are getting the benefit of that margin." The selling price to the United Kingdom, he went on, was based on the slipe wool content of the skin or the pickled pelt content, less 2id per lb for fellmongering, and the wool value was according to the New Zealand woolbuyers' slipe schedule. The pelt value was on world parity, and was reviewed every three months, and it was that review which caused the quarterly alterations to the buying schedule. Prices for individual skins could be too little for any of several reasons—the United Kingdom price could be wrong, the appraisement could be wrong, or an intermediary, perhaps a dealer, was not paying enough. These matters were being investigated by the committee which was at present going into the full ramifications of the control. Speaking of value, Mr Burgess said that it was based on the quality of the wool, the length of the wool, and the quality of the celt. The difference in value between an abattoir and a super country pelted skin might be up to 2s 9d. Opportunity for Objection "From the outset," he continued, "the farmers' and butchers' representatives have been assured that the Control books are open to them. There is nothing hidden, and no attempt to hide anything. The Control is a producers' ' pool,' and I am the manager. If the price schedule is considered wrong, there should be objection. It is fully published. If it is accepted and a wrong price is fixed on a skin, then again objection should be made. This is normal procedure, and is welcomed. Producers should remember that the Control simply carries out the policy given to it. That is its function, and that is what it is doing. We would welcome inquiry by producers' representatives."

Mr Burgess then took part In a general discussion on various points raised by members. All of these questions, he said, would be covered in the investigation at present being made by the special committee. The motion of confidence in Mr tfurgess as controller was moved by Mr A. C. Leary and seconded by Mr D. Finlayson, of Owaka. "Mr Burgess s integrity is absolutely beyond question," Mr Leary said. The meeting then considered two remits on the subject of sheepskin values from the Cromwell and South laierj branches, and dealt with them by referring the branches to its motion of confidence in Mr Burgess The remits were as follows: Cromwell Branch. —■ " That the anomalous position regarding sheepskin values in that the value of the whole is considerably less than the wool shorn or sliped from the skin warrants urgent consideration until a more satisfactory position obtains." South Taieri Branch.—" That an explanation be obtained concerning the discrepancy between the price of wool and the price of sheepskins." MEMBERSHIP OF COMMITTEE SATISFYING MR POLSON (0.C.) WELLINGTON, Oct. 8. " The Government would welcome the addition of the member for Stratford as a member of the Sheepskins Inquiry Committee, and I will arrange for an official invitation to be extended to him," said the Minister of Marketing Mr J. G. Barclay, in the House of Representatives to-day. replying to an urgent question by Mr C. Morgan Williams (Govt., Kaiapoi). Mr Williams asked whether, in view of the fact that the member for Stratford (Mr W. J. Poison) had expressed the opinion that he considered the report to be prepared by the Sheepskins Inquiry Committee would be less, the Minister would consider -appointing Mr Poison as a member of the committee in order to ensure that the report submitted would be acceptable to him.