Statement of Position From Federated Farmers

Chronicle (Levin), 23 November 1946, Page 6

Statement of Position From Federated Farmers

—Press Association

By ' Telegraph-

WELLINGTON, Nov. 22. Mr. H. E. Blyde, chairman of tho actiou comnxjttee of Federated Farmers, statement trojlay^isaid there ap poared to t^^ome''jeoii|;usion of thoughi .abdut the pS|ition in regard to the levy oix'hides arfdt country calfskins. «' W 1 luiyejideen asked by members of 'C-Ke to put out a statement setting out the position," he said. "From information I liave gathered it would apjiear that from the stabilisation datev.at the end of 1942, the levy on hides aad calfskins was kept at the stabilised j^vel of lld per lb. for ox and coiv hides^and yearlings, ld per lb. for billi hfders:'J'and 3d per lb. for eountry calfskins. This position obtained until August 5, 1946, when, owing to the lifting of ceiiings on iude prices in U.S.A., liide prices in New Zealand increased very considerably, which increase ntean-t, that tlierc >vas. a very grave drain on the equ&lisation fund. Tlie hides committee had been soinevvhat appvchensivc; abo-ut Mie position and on July 3, 1946, had written to the Director.of Stabilisation pointing out Ihe' position and asltihg for instructions from the Government as to the course which sliould bc pursued by the eomniittee.'-- Tt vvouTd" be -pointed out that previous to the present position, tho levy on hides tvas an equalisation levy to equalise the standard domestic1 prices, i.e., September, 1939, prices plns 2y per eenj,., whicli was the price ehargod t3 -lbcal lanners, witli- prices received on Ihe opou market overseas. Oti July 22 it liad becn intimated to tho comuiittee by Ihe Government 'that' aelibn woulfl be takou which would result in the major portion of the rccent increases in hides and calfskins being withhekl from tlie pruducers and paid to (lie industries stabilisation account'. "As stated above, liowcver, the lifting of ceiling prices iu U.S.A. cauaed a very grcat strain on tlie fnnds of tho hides eonfitiiltee which poinied out tho position to the Government but no actiou was takou until, on August 3, 19 16, the committee decided to act itself atid passed a rcsolntion stopping all saies of hides by auction and tcnder. Finallv, iii view of tlie eongestion iu

hides in the stores, it was suggested by the eoiumittee to the Government that, as a tcmporary arrangeiuent, a levy shoubl be lnado on all hides and ootin try calf skius which would bring ihe price- to. the produccr into line with the price ritling beforc the ceilingS wero lif'ted in F.S.A., tliis arrangcment to continue until tlie meat scliedule negotiations for tlie new season were concluded, when the position would be reViewed. It sliould be pointcd out here that the hides committee is purely an adniinistrativc body and has no control over poli'cy. This policy in regard to stabilisation matters, up to date, has becn controlled eitlier by the Meat pr Dairy Board or by the joint conimittle of itlie ,'boafds, which bodies havo negotiated with tlie Goverinnent on tlie details of stabilisation matters. As part of the temporary arrangcment, Ihercfore, saies were resumed and from .September 5, 1946, the levy was iucrcascd to TOd per lb. on ox eow hides, Od per lb. on liull hides, KRd per lb. on yearlings, and 15d per lb. on eouutry ealfskins. Since then there liave been two furtlier rises in the levy until it is now 15d fof bx and cow hides, 9d for bull hides, 16d for yearlings and 25d for eountry calfskins. These rates of levy keep liide prices in New Zealand at the level ruling before the ceilings overseas were lifted. ' 1 As far/'as the hides conunittec is aware no' deftnite agreement has been urrived at in regard to the pavout price which should be allowed to farmers. Uiitil this arrangement is made tlie levy will continue to be.fixed to kcep prices where they were before the rise took place. If the Meat Board comes to an agreement with the Government that the producer should be allowed a greater portion of the price for hides "tinui lie4 is being allowed at present, the levy will, in consequence, bc altered. At the moment the levy is being paid into the hides equalisation fund but if precedent is followed its ultimate dcstination again is a inatter for the Meat Board or for the Meat and Dairy Board joint conihiittee. "It will bc seen that the fixing of the levy at its present level, has been done in accordance with instructions from the Government. Until the Government decides that the farmer is; to liave a greater sliaro of the proceeds of (lie realisutions from the saies of hides, Ihe present position will obtain. If the producer were allowed a greater share of the levy this would reduce" cousiderably tlie present pavment of subsidy lo butclicrs. It would give farmers an increaso in price for hides ljdlled on the farm. An increase in liide reali3a-t-ions in New Zealand would make no (lifference to freezing eompanies since the pavnieiit at f.o.b. for beef could be adjusted accordingly and the more they art allowed to recoup on hides the less they would be paid for meat. This is tho position as I see it from information- "I liave gained. It will continue until there is an adjustment in the price of hides which is allowed to tlie producer. ' '