HIDES MARKETING SCHEME

Waikato Times, Volume 126, Issue 21035, 10 February 1940, Page 6

HIDES MARKETING SCHEME

Widespread objection is being heard from the farming community to the Government’s scheme for the control and marketing of hides and the institution of a pooling system by which it is proposed to assist New Zealand tanners. The matter is of particular interest to the Waikato, from which large numbers of hides from cows rejected from herds are sold, the hides in such cases representing a substantial portion of the value of the cattle. The farmers’ chief complaints are that they are being compelled to bear the whole burden of the subsidy to the tanners, and that the Government is not fulfilling its promise not arbitrarily to take control of products and commodities which were not purchased by the British Government under the “commandeer.”

It has been emphasised by the Government that there was no intention of imposing State control on otherwise free markets unless there was a request from the industry concerned. In this case there is no evidence that the producing industry favours controlled marketing. There is, in fact, unmistakable evidence that State control and the operating of the pooling scheme will be resisted strenuously by the farmers. There is an important principle at stake and it is to be hoped the Government and the industry will face the issue squarely and without undue excitement. If the Government can produce proof that the plan is necessary and in the interests of the war effort it will have done something towards convincing the farmers. But if the Government is merely exercising its political preferences it is on insecure ground.

Mr Nash claims that the pooling is necessary to secure adequate supplies to New Zealand tanners, but the farmers declare this can be done, and they have offered to do it, without the expensive control scheme. They would give the tanners first refusal of all hides and the right to choose their requirements. This, it is claimed, would ensure supplies for tanners and preserve the existing channels of marketing and distribution. The farmers object to bearing the whole burden of supplying New Zealand tanners at prices below the British parity. The tanners asked for supplies of hides at the prices ruling on September 1. The exporters proposed a limited pool operating through normal channels and controlled by exporf permits, with some priority to New Zealand tanners. The producers asked for a free market but with priority of supply to local tanners. On these proposals negotiations proceeded with various concessions and objections until on February 5 Mr Nash announced that the Government would purchase all hides and institute the pooling scheme.