BETTER ASSISTANCE

Sun (Auckland), Volume III, Issue 671, 24 May 1929, Page 6

BETTER ASSISTANCE

PORK INDUSTRY NEEDS MINIMUM PRICE SUBSIDY A better form of Government assistance for the pork industry in New Zealand is to be sought by the Farmers’ Union Conference, in the way of a minimum price subsidy on carcases, instead of the present freight subsidy. Li REMIT from the Bay of Islands stated that the present method of paying the pork subsidy was entirely unsatisfactory to dairy farmers, and l hat Government assistance should be in the form of a minimum price guarantee. Mr. S. H. Judd said that there was no doubt that a considerable amount of the subsidy went into the pockets of the exporters. There was a difference of one penny in the price paid in New Zealand and in London, a halfpenny subsidy on freight being gained by the exporters. The pig industry was improving, while there were reductions in pigs iu Great Britain. Canada and the United States. Frozen pork was worth 10Jd on the London market a few weeks ago, which had not been the case for many years. The cause of The rise in price was the reduction in the production of pork and bacon. Now was the time for New Zealand to maintain and increase its export of pigs. The halfpenny subsidy on freight was paid irrespective of the prices received. It was necessary to fix a minimum price subsidy, as was done in the fruit industry. The farmer would then be guaranteed the cost of production. No subsidy should be paid unless prices dropped to a certain level. At present, with good prices ruling, the subsidy was being wasted. New Zealand had the quality in its export, and there was no need to introduce any new breeds of pigs. Assistance in the direction indicated would be of considerable benefit to the industry in New Zealand. Mr. Jones, Bay of Islands, seconded. Mr. W. J. Poison said that the Government had refused to do anything because the producers' associations could not agree. The producers’ organisations eventually met in Wellington and agreed to the proposal. A conference was eventually called, at the suggestion of the Right Hon. J. G. Coates. Objections were raised at the conference, but the producers’ carried their point. The Hon. O. J. Hawken called the exporters together at another conference, and the result was the payment was made on the shipping. and not the way the producers wanted. Mr. Poison suggested that the organisations should take steps to approach the Hon. G. W. Forbes on the question. In order to seek an alteration.

Mr. Boyd considered pig marketing to be an important industry requiring careful haudiing. At Smith field markkets he had found that the importers had a high opinion of the quality of New Zealand pork. Mr. Boyd had no doubt that pig exporting could be made highly profitable. Mr. Barrowclough said that it was desirable to have a form of protection on the pig industry. It was not, however, the form of protection to which the conference had been opposed iu other remits. The pig industry had a future undoubtedly. Mr. Feisst said that the present remit asked only for assistance if the price sank below a payable level. This was perfectly in order under the union's policy. There could be no opposition to subsidies under such a scheme. It was asked that the subsidy should be ou a scientific level. It would, of course, be done away with when the price reached or rose above the payable level. Captain Rushworth made clear the position, and the application of subsidies. Subsidies were required only when production was not payable, and there was nothing in the rules against subsidies. The remit was carried unanimously.