HIDES INDUSTRY

Waikato Times, Volume 126, Issue 21040, 16 February 1940, Page 10

HIDES INDUSTRY

DIFFICULTIES REVIEWED BRITAIN NOT ANXIOI'S .. REVISED SCHEME LIKELY (By Telegraph.—Press Association) WELLINGTON, Thursday A summary of the negotiations about the marketing of all hides produced in the Dominion was given tonight by the Minister of Marketing, the Hon. W. Nash, who said it was expected that all domestic requirements, including those for military purposes, would most likely be arranged at September 1 prices, plus 25 per cent. The principles the Government had endeavoured to follow were that the local tanners must be assured of their full requirements for the domestic market at stabilised prices, and that all sales in the Dominion and overseas must be made through the usual trade channels. Cablegrams were quoted by Mr Nash showing that in the first instance the British Government indicated its willingness to buy and that this offer was subsequently withdrawn, the New Zealand Government being informed that British tanners had formed a buying pool and that in all probability it would purchase the exportable surplus of New Zealand hides. Finally, word was received that the pool was not anxious to enter into an agreement for the purchase of hides. Serious Difficulties Early in November it became obvious to the Government that a serious difficulty had arisen with regard to the supply of hides necessary for New Zealand tanners, who had by this time undertaken several large military contracts and who were also experiencing a substantially increased demand for New Zealand-made leather goods. The price emergency regulations, however, which \yere introduced immediately at the outbreak of war to prevent unnecessary price rises, prevented our tanners purchasing hides at prices above those ruling as at September 1. To meet the situation he called a conference on November 3 of represented ives of the hides industry, the New Zealand Meat Board and local tanners for the purpose of formulating temporary procedure which would enable supplies to local tanners to be available until negotiations with the United Kingdom had been completed. This procedure was completed during the first week of November and provision was made for local tanners to secure first call on all hides at September 1 prices. Mr Nash said that as time progressed this arrangement in turn did not work satisfactorily, as there was still an increasing reluctance on the part of holders of hides to make supplies available. Further Conferences For the purpose of securing satisfactory marketing procedure which would meet the requirements of the local market he called a further conference of the parties concerned on December 12, but unfortunately this conference was unable to recommend any procedure which was acceptable to all interests concerned. Again on December 15 he met members of the Meat Board in a further endeavour to secure satisfactory marketing procedure and at this meeting the chairman, on behalf of his board, acquainted him with the following recommendation:— “The sale of the whole or part of the hides not required by local users should be made to Britain. The local price should be equivalent to the price paid by Britain. In the event of Britain not requiring hides the price to the local consumer should be the price prevailing on September 1, 1939, plus 25 per cent. This would represent, in the opinion of the Meat Board, the average market price realisation for hides over the past three years.” Pool Scheme Decided The Minister said further conferences were held to work out marketing procedure along the lines of the Meat Board’s recommendation, but they were unable to devise a formula satisfactory to all concerned. At this point the difficulties of the local market had become acute and it was absolutely necessary for the Government to take decisive action. He came to the decision that the only practical way in which the problem could be met would be by the introduction of a pooling scheme, whereby returns from export would be pooled with, returns from the local market and the total proceeds distributed pro rata over all hides produced within the Dominion. “A general working outline of the scheme was prepared, and I immediately communicated these details to the chairman of the Meat Board on January 30,” said Mr Nash. “Mr Duncan held a conference that day with representatives of the New Zealand Sheepowncrs’ Federation and the New Zealand Farmers’ Union. That evening I was advised by Mr

Duncan that he and the representatives associated with him were in agreement with my decision that the position could only be met by a pooling arrangement. “On September 1 ruling prices, plus 25 per cent, the Government is assuring all producers as a minimum the fair market realisations under normal conditions, but over and above this will make any surplus available to them which is secured from export.” Revised Scheme Probable Mr Nash said that just before delivering his address he had a talk with the president of the New Zealand Farmers’ Union, Mr W. \W. Mulholland, and in addition he had received that day a letter from the representatives of the freezing companies and exporters. They had submitted a scheme whereby they suggested the safeguards the Government desired could be achieved by a more simple method than the pooling system. He was unable to say so definitely, but he thought there was a reasonable chance of this | scheme being adopted. It provided for the domestic market price schedule to be fixed oil a basis of standard specifications. Freezer hides were to be graded on the same weight range as at present applied to abattoir standards. The domestic market price was to be September 1 prices plus 25 per cent j for abattoir hides. Freezer hides were to be £d up on the abattoir standard.