FOOD PRICES INQUIRY.

Timaru Herald, Volume XCVIII, 11 May 1925, Page 7

FOOD PRICES INQUIRY.

Report of British Commission.

TWO BETB OF PROPOSALS ISSUED.

By Cable—Praia Association —Copyrlghl. Australian and N.Z. Cable Association LONDON, May 8. The Food Commission recommends that cold storage proprietors should be roqun-ed to furnish. statistics w connection with stocks of meat held.

'The hood Council should closely watch developments in the importation of meat from America, since it may be necessary for the Government to intervene by acquiring a controumg interest in British companies operating in Argentina, or in some other way n the supply of chilled and frozen rneut Should be dominated by adverse trading combinations. The Commission does not recommend State trading in wheat or meat. Mr Ryianas, in a minority report, objects to the establishment of a Food Council, as a definite advance in the direction of State Socialism, imposing a heavy burden on the taxpayer, and entailing a serious risk of increasing the cost of tlie people’s food. The Food Commission issued one majority and two minority reports. The minority reports are signed by Messrs T. H. Ryland and W, R. Smith, respectively. Majority Reports. The majority report principally recommends tne estauiisiunent ox a Food council to maintain a continuing .supervision over staple food prices. in connection witn port cnarges on wheat, it x’ecommenus that port authorities glioma carefully consider tne rates with a view to making reductions ‘in the near future. it favours the compulsory registration of retail butchers,. and endorses the recommendation of. the Linlithgow Committee, that cold storage propne- - tors should bo required to furnish statistics in connection with stocks of : meat in cold stores, to be published at the Food Council's discretion.. It recommends that the Council should closely watch future developments in regard to the import of meat from the Argentina, since it is of the opinion that it may be necessary for the Government to intervene by acquiring controlling interests in British companies .operating in tho Argentina, or other;, means, if the supply of chilled and frozen meat to Britain should be dominated by adverse trading combinations. It expresses the opinion that • the: Government may wish to disedss with the Dominion Governments the possibility of encouraging the interest of the producer and consumer in the flow of. food from the Dominions to markets in Britain.

it finally recommends the Government to exercise its influence to ensure that the economic section of the League of Nations shall continuously study international' food problems, and prepare periodical reports for submission to the League Council. The report declares that the operations of the New Zealand Meat. Producers Board have not been an important factor in determining the. high average level of mutton and lamb prices during the past three years. It seems generally admitted that the Board succeeded in reducing the activities of thp speculators, but the report cannot endorse the view that the operations of the Board run counter to the general interests of British consumers.

In regard to the retail meat trade in many parts of Britain* buying rings are commoner than the'witnesses suggested, and the report says the amalgamation of shops in the hands of the Union Cold Storage Compauv tended to dominish competition, yid also that the competition of 00-opera-tive societies was not so effective as it might be in keeping down prices. According'to the evidence, imported meat is, frequently sold as Home killed meat.' 'Misdescription also is common in the caso of different grades of irhported medt. Homo production declined, especially mutton and lamb, while imported .beef supplies increased. It points out that the regulation of shipments is necessary to avoid waste, but it is open to possible abuse. It points out that no evidence was presented to support the suggestion that the international wheat trade.'is controlled by a small number of firm,, exploiting the needs of the consumers. Minority Proposals. ; Mr Smith's minority report recommends tne Government u> assume open responsibility • for the supplies and prices of food, the contrahsu,iiou of imported wheat and flour in tne hands of a statutory Import Roam, acting on behalf of the community, and a similar centralisation ot meat, carrying out the recommendations of the Bridgeman and'Macßosty Committees with regard to the public acquisition of freezing works in South America, by Britain. 'The milling industry should be formed into a statutory corporation wherein the present millowners should hold debentures, tho Government holding the majority of ordinary shares. Local authorities should be empowered to open municipal bread and meat shops, and require the licensing of the retailers in their areas.

WHAT INVESTIGATIONS DISCLOBED.

NO PROOF OF EXCESSIVE

PROFITS,

By Ca’jle- Press Association—Copyright Australian and N.Z. Cablo Association. (Received May 10, 5.5 p.m.) LONDON, May 8.

The Food Commission report states that during 1924, some retail butchers made excessive prolits, but tli6 evidence points to the conclusion that the reduction of Id per lb. on all beef and mutton sold in tho butchers’ shops would at the present time extinguish tho profits in all but a few exceptional eases. AVe do not complain at the butchers making Ad lb. net profit on meat sold under its proper description, but tiro Pood Council’s attention should be specially directed to the practice ot substitution of false descriptions in the sale of meat, to isolated cases of gross profiteering, and possible abuses that may arise in a system of regulating imported supplies. The returns obtained from a number of important wheat firms show a small but adequate margin of profit for good years, and a Joss ,in bad years. AYhilo it is true the number of firms handling wheat gradually diminished since 1900, all the evidence received points to tho existence of keen unrestricted competition between firms.