H.—3o

ACCOUNTS The tallow accounts are shown in the accounts section at the end of this report, page 32 and 33. They comprise Purchase and Sale Account, Revenue Account, and Tallow Account, and cover the purchase and sale of tallow for the year ended 31st July, 1943. After providing £11,127 for administration and handling expenses, the surplus of £368,897, which represents the difference between the purchase-prices and sale-prices, has been transferred to the credit of the Meat Pool Account (page 16). The credit balance of £9,657 in the Tallow Account represents the difference between the Department's administration and handling allowance and the actual charges incurred by the Marketing Department. HIDES The report for the 1939-40 season gave details of tfie action taken by the Government in regard to control of export of hides, and stabilization of prices of hides for local requirements, and equalization of value of hides for local use and for export, by a levy on exports to even up the difference between local " standard domestic values " fixed at Ist September, 1939, prices, plus 25 per cent., and export values. This procedure is embodied in the Hides Emergency Regulations 1940, and the administration of the regulations is entrusted to a Hides Committee, which operates under authority conferred on it by the Minister of Marketing. SALE OF HIDES TO AUSTRALIA In October, 1941, arrangements were made between the New Zealand and the Australian Governments for sale to the Australian Hide Board, for military manufacturing purposes, of ox and cow hides of specified weights which were surplus to New Zealand requirements. This arrangement has been continued during the 1942-43 season, the grades of hides concerned being ox and cow hides 401b. and up. The Marketing Department has purchased these hides on the terms set out in the report of the Hides Committee which follows, and sale is made to the Australian Hide Board at New Zealand standard domestic values. The number of hides shipped to Australia during the 1942 43 season was 109,137. The accounts covering the foregoing transactions are shown in the accounts section at the end of this report, page 33. It will be seen that the deficit for the 1942—43 season was £51,44:1. REPORT OF HIDES COMMITTEE ON OPERATIONS FOR YEAR ENDED 31st MARCH, 1943 The following report has been submitted to the Hon. the Minister of Marketing on behalf of the Hides Committee by the Chairman, Mr. A. P. O'Shea : —- " I have pleasure in submitting the third annual report and statement of Equalization Fund for the year ended 31st March, 1943. " The work of the Committee during the year has been carried on smoothly as in the past.

" Export Levy. —The following table sets out the particulars of the various changes in the rate of levy during the year : —

" The amount of levy payable is calculated on the weights invoiced to overseas buyers, and such weights are declared on the Customs' export entries : " During the period April and May, 1942, the tanners claimed very heavily of both ox-hides and cow-hides, and it became necessary to make a substantial increase in the rates of levy on the sth June, 1942, as shown above. " On the 16th September, 1942, the Committee revised the levy rates and again on the 24th October, 1942. It was agreed by the Committee that, unless special emergency conditions arose, every endeavour be made to retain these rates for a period of twelve months. " Sale of Hides to Australia. —The arrangement made between the Governments of New Zealand and Australia continued during the current twelve months. This meant that, as before, there was no overseas sale and it was necessary to assess a price payable under export conditions. This duty was delegated to a sub-committee consisting of Messrs. J. Fraser (Chairman), W. Y. Watson, J. P. Maokay, and G. A. Duncan, with the secretary ex officio. The sub-committee continued to function and met on the first of each month.

" The ruling price schedule for April, 1942, was as follows : —

24

Rates of Levy, per Pound. Dates of Changes: T Calf-skins Effeotive on and after Ox hides. Cow-hides. Bull-hides. Yearlings. (other than freezers). 1942. cl. d. d. d. d. 9th February 1 1 I i 6 5th June .. .. 2J 2| J § 6 15th September if 1| I I 3 24th October .. if lj 1 li 3

T7i a i 11 ■ Country First Second Third Freezers. A attoirs. gibers. Country. Country. Country. Ox: 481b. up— d. d. d. d. d. d. Average weight 52 to 54 lb. .. 9 ft 7 ]l Average weight over 54 to 56 lb. 101 9f 9£ 8| 8J 7f Average weight over 56 to 58 lb. lO-ft 9 }f 8 8^ 6 - 7 }§ Average weight over 58 to 59 lb. lOf 9J 9§ 8| 8f 7| Average weight over 59 to 61 lb. 9j| 8jf 7$ Average weight 61 lb. up .. lOf 10 9| 9 8J 8 Cows 50 lb. and up .. .. 8j| 7|f 7^