WELLINGTON NEWS

Hokitika Guardian, 14 July 1926, Page 1

WELLINGTON NEWS

FROZEN MEAT MARKET. (Special to “ Guardian.”) WELLINGTON, July 12. The announcement'that the price "Dr which lias been going on in the chilled and frozen meat trade of the United Kingdom between certain American Packing Companies and Vestey’s is likely to he terminated bv

agreement is looked upon in meat circles as forecasting a probable recovery in the meat market, which has been very much depressed for many months past. Chilled meat from the Argentine has been sold at ridiculously low prices bringing down lamb and mutton to a very low and unprofitable level. The, British consumer has had the benefit, but it has meant heavy losses to the contestants and to most of the producers. The fight began last year and the matter was referred to by Messrs AV. AVoddel and Co in their annual review of the meat trade, in which they said: “During the greater part of 1925 the chilled beef trade was in continual difficulties owing to certain of the American companies having greatly increased their normal shipments of chilled beef. The British companies in the South American trade have still deeply engraved upon their memories the methods employed by the American meat companies to secure a larger share of the South American meat business by flooding the markets with chilled beef at prices that bore no relation to the cost. At one time the English companies handled (56 ]>er cent of the Argentine meat shipments to Great Britain; but that proportion has been gradually reduced, until to-day the American companies have about 60 per cent of the trade and the English companies about 28 per cent. In order still further to increase their proportioiAcertain American companies are again employing the 1913 tactics, but this time they find themselves opposed not by the comparatively small concerns which they found an easy prey in pre-war days, but by a British combination which with several thousand retail shops, is much more favourably placed to make a stand against being put in ati inferior position to its principal competitors.

THE BUDGET. Amongst business men there is some alarm at the extraordinary expansion of the public debt, and it seems the more prosperous the country the more ready is the Government to borrow lavishly ’and squander money. During the past year the public debt has increased by £11,000,000 and the gross debt now amounts to £238,000,000, and

is equal to about £l7O per head of the The total debt of Australia, that is Commonwealth and States, works out at £IGG per head, and Australia is a much richer country, richer in resources than New Zealand. The rate of borrowing by Now Zealand lias been much too rapid, 'and if trade does not show some recovery we will havo a great struggle to make ends meet. There is no indication in the Budget that further loan authority -will lie sought, but that does not mean that there null not be a loan in May of next year, if not sooner, foil existing loan authorities cover many millions. The estimates for the current year are for a revenue of £24,266,200 against actual receipts in the past year of £24.725,702 or £459,662 less. The Customs revenue is expected to show a shrinkage of £900,000, but other sources of revenue particularly Post and Telegraphs are expected to show increases. Tt is difficult to follow this. The spending power of the people has been reduced because the exports have shrunk, and for that reason' importers are obliged to reduce imports to bring the volume within the purchasing power of the people. If purchasing or,- spending power is less the Customs, the .Railways, the Post and Telegraphs and some other departments must suffer. Tt is very doubtful whether the Tinanco Minister will got the estimated revenue, and he is not sure of if. himself, for he says: “Either way the ultimate result will depend a great deal on the uncertain factor of imports.” Taxation is not to be reduced and it will be cheering if it is not raised next year.