FROZEN MEAT TRADE

Stratford Evening Post, Issue 16, 4 October 1929, Page 5

FROZEN MEAT TRADE

TRUSTS GET PROFITS Bill BEFORE THE HOUSE ■When he introduced Ms Meat Export Control AmendMent Bill in the House yesterday, Mr W. D. Lysnar attacked the Meat. Board alleging that it had failed to control! the marketing of produce in a proper manner and had allowed trusts to get the profits instead of the producers. He considered that the measure attacked the root cause of the general depression and unemployment. The Bill was read a first time. WELLINGTON, Oct. 3. Mr W. ID. Lysnar, in introducing the Meat Export Contro] Amendment Bill, said he hoped it would be treated as a non-party measure, and that it would be dealt with during the present ses sion, as he considered it attacked the root cause of the general depression and widespread unemployment. Ho claimed that the Meat Board had failed to control the marketing of produce in a proper manner, and pointed out that the middleman's profits were far too high. Trusts were getting the money instead of the producers. He considered that the middleman's charges could 'be reduced by five to ten millions, and, if farmers had that anfoifht added to their income, they would not be likely to complain against paying an'additional three hundred thousand in taxation. The ’main proposals in the Bill were to.make the Board representative of farmers'- to do away with the commercial interests representative; and to make a reasonable and effective effort to control the operations of the overseas owned freezing works. On the Bight Track Mr Savage said it seemed that there should be legislation to bring the producers and consumers closer together. There was a Government in Britain

W.W/AW/.V.V.Wi v , • favourable to the principles of cooperative marketing, and it the New Zealand Parliament was not going to take advantage of that, it would seem that members were lacking in their duty to the producers of New Zealand and to the Dominion generally. He trusted that the Government would take up Mr Lysnar’s Bill. Mr J, Poison said he considered that the subject was one of the most important thap had been raised in the House this session. The Meat Board Lad staffed well, by passing a solemn resolution that no oversea works should be allowed to acquire interests in New Zealand and had lived 'up to it for a time. However, the trusts had begun a policy of peaceful penetration and the result was that now only two independent works were operating in the Dominion. The Meat Board was a costly institution and had given good service in many ways, including the reduction of costs to the producer, but it was capable of doing more. Enormous profits were made out' of New Zealand produce when it reached the other side of the world. The effect of the control of big combinations was to squeeze out the small farmers’ organisations in this country. Mr H. R. Jenkins supported the Bill and added that there was too great a difference between the amount received by the producer and the price the consumer paid. The House should treat the matter very seriously. Facts Not Disclosed Mr Jones said that the whole of the facts had not been placed before the house. A total of 47.7 per cent, of New Zealand mutton and lamb went to Smithfield and any butcher could go to the market there and buy a single carcase if he wished to do so. Mr Jones denied that the Meat Ebard had gone-back on its policy. So far as the overseas interests were concerned the Board had passed a resolution that it must give its consent to overseas interests buying nmat in New Zealand Every case was decided on its merits and the questions coming before the Board were viewed from every point possible. The Board’s solo interest was that of the New Zealand producer. Tho percentage price that the New Zealand farmer was getting for his meat was beyond the index price of every other country. There was very little room for improvement in the system. To-day the farmer was nearer the cons amor than he had ever been before. The man who formerly had been speculating and operating in New Zealand had been entirely squeezed out. Mr J. T. Hogan said he hoped the Government would go into the matter and ascertain whether tho New Zealand producers were getting anything like the return to which they were entitled for the sale of their produce in tho old country. Mr Dickie’s Support

Mr H. G. Dickie expressed Ms support for the general principles of the Bill and stated that the system of election to the Meat Board was clumsy and expensive. Mr, H. Holland (Bailer) said he hoped the Government would allow Mr Hysnar to have the second reading of the Bill. Even if the Government would not take up Mr Lysnar’s measure itself ho thought it should introduce some legislation to deal with the points to which attention had been drawn. There had never been a more te the emit to . . i

take up such a matter. There was a proposal m the old country to form a Food Purchasing Board and it the New Zealand Government were to get into touch with the authorities there i« might be possible through such a Board or by some other arrangements to arrive at a more scientific method , of marketing our produce. It was ic- j grettable that trusts had been permitted to gain such a hold in New Zealand. The problem was one that had to be approached from a national viewpoint. There was a field for investigation and immediate action in the marketing of the primary produce of New Zealand. Mr 11 M. Rushworth said he did not claim that the Meat Board bad not done good work, but it was doubtfu whether in its present state it could continue to do good work, lac i was undoubtedly a move in the right direction and he could support its general principles. Minister’s Statement The Hon, G. W. Forbes stated that the one thing that had emerged from the discussion was that the Government at present in power in Britain had made statements in relation to the marketing of foodstuffs that wore of importance to Britain. Marketing was a difficult problem and he was glad that the Imperial Government had decided to take the matter in hand,_ Ho said that if farmers would combine to organise their own freezing works there ■would be no need to worry about

trusts. In the hist few years we bad been busy stocking up breeds to meet the requirements of our own country and now that that had been done he was satisfied that there ' vou very large increase, in the immediate future, in the exports of lamb. Ibe measure proposed by Mr Lysuar was une that could not be taken up Ugktiy. He did not claim that the present market mo- system was perfect but he did not think U was the opinion of the farmers generally that the Meat Board was not doing good work. He was sure that the farmers' representatives would have made very urgent representations to the Government had they felt that they were suffering any injustice. Farmers Have Majority Hamilton stated that the farmers had the majority control on the Board and could exercise it any time they wished. They had five members out of eight, the others consisting of two Government and one trade representative. He was satisfied. Mr \V. J. Jordan urged greater progress in the development of co-opem-tivc marketing. Mr 11. McL. Campbell expressed doubt that the farmers’ interests could best be served by a Meat Board. Mr Lysnar, in reply to Mr Forbes, stated that the farmers were tired of asking for legislation but lie was satisfied he would have little difficulty in obtaining resolutions from thcii organisations to support his attitude. * The Bill, was read a first time and the House adjourned.