The Hokitika Guardian FRIDAY, DEC. 23rd, 1921. THE PROPOSED MEAT POOL.

Hokitika Guardian, 23 December 1921, Page 2

The Hokitika Guardian FRIDAY, DEC. 23rd, 1921. THE PROPOSED MEAT POOL.

The very unsatisfactory condition of the frozen meat market in Britain has been causing much anxiety throughout the Dominion, and it was inevitable that the Government should consider some means of reducing tho loss of suffered by the m eat growers and, as a consequence, by the Dominion as a j whole. The cost of marketing the meat absorbs such a large proportion of the returns fiom sales that meat-raising has practically ceased to pay, and if this condition should continue for any length of time, the consequences would lie immeasurably serious. The Govern- j niont has accordingly adopted a plan - tho details of which the Prime Minis- [ ter gave to the House of Represents- j lives this week. The proposal is that | a Board shall he set up, composed of ■ representatives of the various interests ; involved, which shall take control of j all meat for export as soon as it is j placed in the freezing stores and i graded. The Board will sell the meat | at its discretion and negotiate freight j contracts and freight (arrangements. I and will work in conjunction with a j Board to he establish ill London. This ! new and far-reaching proposal, which ' upsets all the existing machinery of j our moat export trade, was, bather surprisingly received in the House with general approval, but, remarks the Press, it w as not made clear by, the Prime Minister that the “pool” will neutralise the main forces operat- | itii, aga ins the prosperity of the meat industry in this country. Pools, com- , bines and amalgamations have this j advantage, that in some circumstances they make for economy in handling j and distributing merchandise, but it has not been shown that the. net return ' to New Zealand from the sale of our moat abroad has boon reduced by the existence of the independent interests j at this end. What the public in gene,

ml, and the producer in particular would like to know, is whether the business to lie undertaken by the Board will lie more economically and efficiently managed than it is managed at present. But probably the Government relies chiefly upon the capacity of the Board to shape its sales, to the conditions of the London market, and to enable the Board to act with freedom the Government will apparently undertake the heavy financing that will lie necessary. Whatever may he said for m against tlfo pool from the purely business point of view, it is most unfortunate that the country cannot escape from the period of Government control. No term is set to the operation of the “pool” and if it is decided to put the scheme into effect we shall almost certainly come up against the difficulty that attends tho process of de-control. The experiment is so important and far-Tonehing that it ought not to bo adopted without the most careful discussion, and then only if there is general agreement in favour of it amongst all the interests concerned in the industry.