LEVY ON MEAT.

Star (Christchurch), Volume LXVI, Issue 20541, 16 February 1935, Page 11

LEVY ON MEAT.

British Proposals Before Cabinet. PRELIMINARY CONSIDERATION. “ Star ” Parliamentary Reporter. WELLINGTON, This Day. Preliminary consideration has been given by Cabinet to the British Government’s proposal for a longterm agreement affecting the market ing of all classes of meat in the United Kingdom under the Ottawa agreement. The quota principle was applied to meat imports to Great Britain, but it is understood that in addition to the quantitative regulation, the new plan provides for the imposition of a levy of one halfpenny a pound on Empire produce, and one penny on foreign produce. The proposals have been received here with apprehension, and it is not anticipated that finality will be reached by New Zealand for some time. Before the scheme is completed some feel that it may be necessary to hold a conference in London on the lines of the Ottawa gathering. Short-Term Agreement, j In the meantime consideration is j being given to a second short-term agreement for a period of from March 31 to June 30, and negotiations on behalf of the New Zealand Government are being carried out by the High Commissioner, Sir James Parr, who has associated with him represensatives of the Meat Board. The most contentious point in these prorelates to baconer pigs, and variations of the existing allocations are being sought. _ New Zealand’s exports in this direction have shown considerable improvement within the last two or three years, and she is naturally keen that this growing industry should not be frustrated. It is unlikely that any serious difficulty will arise as the period of the proposed agreement is comparatively short. At the same time the New Zealand Government is anxious that finality should be reached as soon as possible. The all important question is the long-term agreement, and in this connection the situation is much more difficult. The quota proposals as formulated at Ottawa envisaged the orderly expansion of the British market at prices which would be remunerative to not only the Home producers, but also the Dominion farmers. The idea was to bring the meat imports to the united Kingdom into closed relationship with the effective demand, and once this had been achieved, to develop Empire trade on a higher pnce level. As far as meat is con cerned. considerable progress hrs been made in this direction. Prices have b if en^ higher than the Y were before the Ottawa conference, and have also been relatively stable. Consternation Caused. The proposal to impose an import tax, however, is causing consternation, and is not likely to be received favourably in New Zealand or in other Dominions. Shortly put, it may be found that New Zealand’s attitude towards the levy proposal will be that is both unfair and unfortunate.” The long-term proposals require a deal of investigation and discussion,” said Mr Forbes to-day. "It will be some time before we can come to any decision. Australia has had a similar intimation, and the Commonwealth Government is considering it.” In reply to a question, Mr Forbes said that he was unable to say at present whether it would be necessary to send any member of the Ministry Home to conduct the Anal negotiations. On this point it was not known whether Australia would reply to the suggestions of the British Government or withhold its answer until the Federal Prime Minister, Mr Lyons, arrived in London. The attention of Mr Forbes was called to a newspaper cablegram stating that he was expediting his departure to London with a view to participating in the meat discussions together with Mr Lyons. The Prime Minister stated that the question had yet to be considered, but he hoped to make an official statement shortly.