DUBBED ARACKET

Chronicle (Levin), 5 November 1947, Page 5

DUBBED ARACKET

PLAIN SPJEAKING IN HOUSE ON CALF SKIN TRADE WELLINGTON, Nov. 4. A protest against* the "shoeking way" primary producers were exploited in having to sell bobby calf skins to benefit secondary industries in New Zeaiand, was made by Mr. E. B. Corbett (Egmont) in the House of Representatives tonight, when the Marketing Department (export division) estimates were discussed. Mr. Corbett said tanners were still receiving skins at the original stalnlised price of l(5d per lb, despite a substantial rise in the price for skins. It was a shameful exploitation of the primary producers. At presept market rates producers were supplying tanners with 283,000 skins at a loss of 10s per skin. That was the quantity which the Government insisted the producers supply to the tanners. He blamed not only the Minister but also the central executive of the Bobby Calf Pool for "this shoeking imposition."

"This has gone on far too Jong," said Mr. Corbett, "Let the Minister pav the full market price for the skins and even if the full amount is not paid out to the producers, it can b.e kept in the stabilisation account against a recession of prices. " Xlr. J. N. Massey (Franklln) said theposition regarding bobby calf skins was "an absolute scandal and h-as been a racket all through." At the insistence of the Chairman of Committees, Mr. Carr, the Member for Franklin withdrew the words "scandal" and "racket." Hon. E. L. Cullen, in reply, said' he thought the tanners had been very weli treated. Iie was very sympathetic witn the farmers and at present negotiations were proceeding concerning variations in the price and also with reference to the price that had been paid. In view of those negotiations he could not earry the matter any further at present. Mr. T. L. Macdonhld (Wallace) complained that the price paid locally for tallovv was far too low in reiation to the price obtained by the Marketing Division overseas. Tallow was being wasted today on e very farm where home killing was practised and at most country butcheries, because it sinipiy did. not pay to collect it. There was "a very big rake off" somewhere. It was also wrong that portion of the price realised on fats collected faithfully by housewiv^as part.of the Aid to Britain campaign, should be paid into the meat pool and meat industry stabilisation account, Mr. W. A. Sheat (Patea) said if producers knew the full story of how they were obliged to sell skins cheaply to local tanners instead of being allawed to earn dollars by marketing the skins at world prices overseas, they would be up in arms. . Mr. W. A. Bodkin and other memberS protested at what they termed the unfair system whereby butter producers were allegedly subsidising the local consumer. Mr! Bodkin said that, instead of butter for local consumptioii being paid for»at the full export price realised overseas, it was being paid for at the level of payout to the farmers for butter sold overseas and the difi'erence was a substantial one. Mr. Bodkin declared that the eollec-

tion of fats had been bungled and affirmed that the producers of caix skins were receiving little more than one-third of the price they were entitled to. Mr. A. H. Nordmeyer said there vas no justification for suggesting that the Government had treated the dairy- farmers unfairly. For some time the price paid to the dairy industry account for butter consumed locally was below the ruling guaranteed price. Thep the Government decided that the full guaranteed jirice should be paid for locally consumed butter as well as for export. .No reasonable person could expect more than that. The farmers would receive

the full guaranteed price irrespective of whether their butter was marketecl in New Zeaiand or overseas. It was now being suggested tliat the Govern,-. ment should pay into the dairy industry account for butter locally used, tfie full price paid by Britain. Ir that were done then logieally- the woollen miiis and a score of other industries should De entitled to charge for goods sold locally, the full price whieh they could comniand in the world market, if they ware free to export their produets. The faet was that the Government had paid everything it had undertaken to pay the dairy farmers. Mr. Cullen, answering inquiries about the sale of butter outside the Unitea Kingdom, said small quantities of- but- ! ter, fallow and peas had been sent to India. Without those exports we would not have obtained urgently required jute sacks from India. Mr. Macdonald (Wallace) said he knew of an instanee where a country butclier who, rather than send tallow to the markets at a loss, burned it to lieai;water and thus save coal. Mr. Nash said nq greater erime. could be committed today than to burn tallow which Britain needed. "The mau's name should be made known, ' ' said Mr. Nash. The Minister went og to say that the

c — — !-=- Government commission fo,r .eoUecting tallow was a lesser charge than any pnvate. person could do the job for and if - there were anv surplus, it was paid into the stabilisation accounts for the ultimate benefit of the industry. It was- as a result of New Zeaiand "having estabUshed a price level that was the envy of the world, that slte was able to sell Britain her produce at 25 and even up to 50. per cent. below the prices Britain would have to pay if she bought produce else where.