INCREASED LEVY ON HIDES

Chronicle (Levin), 14 September 1946, Page 5

INCREASED LEVY ON HIDES

-Press Association

BOMBSHELL FOR INDUSTRY

By Telegraph-

DUNEDIN, Sept. 13. t Sometliing in the nature of a bonibshell was dropped into the hides and skins industry last week by the an nouneement by tlie Hides Committee 01 a revised scliedule of levies on all hide.freed for export in future saies. The announeement of a general increase in the rates pf the levy was not in itseli a surprise but it was not suspeeted that the revised seale would represent sueh an extraordiiiary advanee 011 the levv whieh has been in operation for the past year or two. A comparison speak for itself. Ox and_liides: New levy l()d per lb. compared with the lirevious levy of Bull hides: 6d per lb. compared with ld. Y earlings : 10 id per lb. compared with I-ld. Calf skins: 15-d per lb. compared Witli "The industry is astounded by this advanee," said a prominent figure m the industry today. "It aceepted the situation that the flare-up of the overseas marlcet in the past few month. would necessarily result in some in crease in the levy, but this is out of all proportion. " In effect, itf-was sfatecl, tKe. >t«nhefpv had been entitie'd to qlaina/ two-tijif ds oi .any 'quantity of hides sold at the ■standard priee. The market level was made by the exporter so that tlie priee was eontrolled by the overseas demand In consequenee of the imposition of the levy, the exporter 's priee was reduced beeause he had to provide for the levy All was working smoothly until the overseas market began to lift. The eoTitinned heavv increase was in .Tuly and August and that'trend had been maintained. Tn fact market values had doubled since May. It appeared that as soon as the market showed an upward tendency, big seasonal operators flooded it with their ae.cumulated stocks. The ljd levy was favourable to sueh operators, it was said, and they disposed of all the stocks they field. Tanners were eompelled to buy at that time of year. They just had to obtain their stocks. It was a safe assumption that the increase in levy cost 'ihe produeers £6000 at the monthly saies hekl at Dunedin on Thursday. It seemed tliat the Hides Committee had thumped on an exorbitant increase to cover its commitments and at that rate it should make up the leewav in quick time, solelv at the expense of the all-the-yegr trade. The consequenee of the increase to • the produeer was illustrated by the following comparison of prices -for- May ■ and August under the old levy and September under tlie new levy: — Cows 31/39: May 83d, August 17R1, September 9ft.. . Cows 40/50: May 9ft, August 19ft, September 10§cl. Cows 50/70: May Sfft, August 19|d, September lOgft. Ox 31/44: May S3ft, Augu§t 18d, September 91ft. Ox 45/52: May 9ft, August 184ft, September 9Jft. Ox 53/58: May 9Jft, August 19fft, September II ft. Ox 59/69: May 9|ft, August 20f, * September ll§ft. Ox 70 and up:- May 94ft, August 204ft, September ll|d.