OUR MEAT IN LONDON

Dominion, Volume 9, Issue 2858, 24 August 1916, Page 6

OUR MEAT IN LONDON

WHO GETS THE PROFIT?

BEEF TRUST SUSPECTED

GRIEVANCE OF PRODUCERS ' DEPUTATION TO PREMIER. ' The grievance of producers in New Zealand that the surplus of the commandeered meat from New Zealand is not being sold to the best advantage for New Zealand growers on the English market was put before the Prime Minister yesterday by a deputation representative of sheep farmers all over the Dominion. They complained, that huge profits wero being mado by someone out of this meat, and that theso profits were being made by operators in meat, probably the American Meat Trust. The deputation, which was introduced by Mr.H. D. Acland, represented the New Zealand SheopownoiV Federation (Otago and Southland shoepowners, Canterbury and l Marlborough sheepowriers, Defence Committee of the Wellington Farmers' Union, Hawko's Bay, Poverty Bay, and East Coast). A Big Discrepancy. Mr. G. D. Greenwood (South Island) said the object of tho deputation was to point out the position in regard to the. commandeering of meat and the discrepancy in the price the producer received for it and the price at ivhich it was cold at Home. For instance, the retail price of Canterbury lamb was quoted at Is. 24d., while the producer was receiving/froni the Government 5 5-Bd. per lb. The difference went into the pockets of someone. Mr. Greenwood added that the Board of Control consisted of Sir Thomas Mackenzie, Sir Thomas' Robinson, and Mr. Montagu Nelson, and producers thought it was probable-, that Sir Thomas Mackenzie j was outvoted on questions affecting their interests. There was an impression that the difference was £oing into the hands of the Beef Trust, which had a firm footing in Australia, and vbich it was thought had obtained a footing in New Zealand, although there.was no proof of.it. . Mr.'Masse?: There's no doubt abouti it. ■

Mr:': Greenwood said l that although no information had come before him it was .thought that the discrepancy was 12s. 6d. to- 13s. a head on New Zea-lahd-lamb.

Mr. 'Massey (laughingly): It's not very difficult to upset that calculation. Mr. Greenwood remarked that 'supposing the difference was half tie amount it would mean a very considerable sacrifice to make for the Beef Trust or the British consumer' rhen 'tho Imperial Government was making use of New Zealand meat to keep down the prico : generally in the* Old Country. . Argentine Moat Fares Bettsr; - .Replying to a point raised by Mr. Greenwood, Mr. Massey stated that tho Imperial Government could not impound Argentine meat. It had contracts for the,supply of meats for the troops of tho Allies, but one of the conditions of tho' contract was that the Argentine .'should have the right to place any surplus quantities of meat oh the open market. A member of the deputation: Wo should bo placed in the same position. Mr. Massey: They have a tremendous advantaged ■■ There is no' question about it:.-".'- ....\-:,,... •Mr. Acland referred to the fact that in. the newspapers New Zealand meat was quoted at B§<l. and irgentine at lid.. .'New Zealand meat was not being sold at, 2d.' lb.\ lower than Argentine. Who.was gdtting that difference? The producers believed if was going to the Meat Trust. ..... Mr. Massey:' Havo you any reason to believe that it is going to the Meat Trust?,. • ''~ Mr.: Acland: Where ejse can' it' be going? .... Farmers' Fears. , Mr. Eweii Campbell (North Island) Baid that prodnoers feared that after tho war New Zealand meat would remain lower in price. in consequence 1 of ■its' having been sold during the. war at a'lower price than Argentine meat, and-so all the work of building up the reputation of New -Zealand meat on the London market would have been *in vain. It was'known that two members of the committ-ie .which were in charge of the marketing of; surplus meat on account of the Board of Trade were interested in the meat trade, and it was thought that, perhaps unconsciously,. they might be biased. Another impression was that the wool was to be commandeered, and this was causing a good deal of anxiety. It was recognised that taxation would have to be heavier than at the present time, and if the farmers were going to make a loss on their meat and wool it would be a very serious thing for them. Mr. Greenwood: In Canterbury certain buyers aro paying, and have been paying, right through the season, more .for lamb than tin Government. Mr. Massey: They are doing it here for beef to-day Prime Minister's Reply. Tho Primo Minister, replying, said ho was very glad that the deputation had come along to have the matter out. There was in certain quarters a feeling of uneasiness and dissatisfaction in regard to the disposal of our surplus neat in England. As most of them knew, ho had been 'watching this very closely over since the scheme was brought into operation in March of last year, and nothing that lie could do had been'left undone. He belie'v^l l that tho producers had a griovancc—(hoar, hear) —and he said this not as a .producer, but as a Cabinet Minister, and as the Minister who had been responsible for the supervision of the meat export business for some timo past. "He believed that tho grievance dated from January of this year. Up till then ho had been ablo to defend the business and) the actions of tho Board of Trade. Since then he had seen that there was a weakness somewhere, and he considered it his duty to let tho people of tho country know what ho knew. This ho had done very fully in a-■statement on the subject which ho made to Parliament. Since ho had mado the statement ho had had certain other correspondence with the Imperial Government. Ho intended to get to tho bottom oE the business when he was in London, and his object would bo to puf matters on a more satisfactory footing for the producers in New Zealand. Following it Up. Mr. Massey read a telegrams which he had dispatched to tho Imperial Government very recently, but which he asked the Pross to treat as confidential. It referred to matters raised by tho deputation, and several of the gentlemen present expressed satisfaction with tho tonus of it. Items in the Cost. Going on to refer to the meat export business generally Mr. Massey said that it cost not loss than 2 5-Bd. to land our meat in London. Several times tho Board of Trado had complained to him about the very high cost of storago in this country. But the heavy expense under this head was tho fault of tho Board of Trado. When tho contract was first made it was arranged that tho freezing companies would keep the meat in cold store for ! a month free of charge, and that after

this poriod storage would have to be paid. Ho had thought then that this arrangement would make the Board of Trade see the wisdom of supplying enough ships to tako the meat away quickly enough to keep the stores empty. This had not occurred, howover, and a very large sum of money had been paid! by the Board of Trade for storage in New Zealand. Another factor which kept up tho storage costs was that the Board of Trade always kept 3,000,000 carcasses in store, in reserve. He could not tell the deputation the reason why this was done. The landed cost of Now Zealand lamb at Home was about SJdi per lb., but there was a big discrepancy between this price and the prico at which it was actually being sold to the British consumer. Ho did not believe, however, that what was going on now would reduce the price in future of New Zealand meat: He believed that cur meat had been established all over tho United Kingdom, and that after the war Now Zealand would top tho market again. Personnel of the Committee. Reference had been made to the constitution of the comraitteo which was distributing our meat in London. On several occasions ho had asked whether the gentlemen of that committee wero using their positions on tho committee to advance the ' interests of the meatconipanies with which they wore connected, but in every case the answer had been in the negative. Ho gavo that answer to the deputation for w'laTi it was worth, and until he had an opportunity to look into the business for "himself the matter would have to rest there. _ We had sent away enormous quantities of meat not surpassed in the world, meat fit for any market. The arrangement with tho Board of Trade had benefited this country.' Under it wo bad sent aw ; ay meat" to the valuo of 12f millions sterling, and that money had gone into circulation here. The Wool Clip. A suggestion had been made that the Imperial Government would commandeer our wool clip. Ho did not believe this would bo done. If the Imperial Government had any such intention he should have heard of it long ago. Sir James Wilson: .They will commandeer it at Home.

Mr. Massey: "Well, if,- they do,, they will have to pay tho market price for it. •

Sir James Wilson: But tho difficulty raised by the farmers at Homo is about getting the man to fix what shall be the price. "Mr. Massey said that he realised that if wool was commandeered from one part of the Empire it would have to be commandeered from all. '.'■'»■ At the End of the War.

Mr. Massey referred in conclusion to the arrangements for the tormina-, tion of the contract with the Imperial' Government at the end of tho war. It was suggested that tho arrangement should continue until three months after the end'of the war. His own suggestion to tho Board of Trade was that it should agree to take all the meat in store at tho end of the wan

Sir James Wilson: If you can get them to agree to'that we shall be satisfied. ■',!'■

Mr. 1 Massey said that ho did not anticipate'any difficulty about meat being left on our hands here. Meat would be required for the armies for some time after the conclusion of hostilities, because it would bo some time before /the troops. could be got home and demobilised.:

Beforo retiring, members of the deputation expressed satisfaction with tho work done by Mr. Massey to safeguard the interests of New Zealand producers.

FARMERS' RESOLUTION. v By, Telegraph—Press Association.

Chrlstchuroh, August 23. The Farmers' Union to-day passed the following resolution: —"That we request the Govornment to immediately convene a conference of the producers (through the executive of tho Farmers' Union) with the Government and A. and 'P. Societies to arrange for next season's meat supply, and that the present contracts be terminated."