THE MEAT TRADE

Hokitika Guardian, 3 August 1926, Page 3

THE MEAT TRADE

OPERATIONS OF BOARD.

WELLINGTON, Aug. 1

“We know that the Meat Board is animated solely' by the desire to do its best for the producers, and that the anxiety of both the Board and the Minister is to prevent freezing interests aontroling our means of production by the purchase of the freezing works,” says Mr W. J. Poison, reporting to tho New Zealand Farmers’ Union on the meat trade.

“But,” Mr Poison continues, “credit lias been the foundation of all our colonial development. Without overseas capital neither tho Government nor the people of New Zealand could hare gone ahead. Stagnation must have ensued. Overseas capital is as desirable in the development of our freezing industry- as in any other industry, hut foreign capital—and I use the term merely as distinct from local capital— must be controlled. The function of the Meat Board is not to stop tlio use of foreign capital, but to supervise it. Tjiat was the purpose for which it was appointed, but if tlio Board and the Government are going to maintain the attitude that foreign capital must be shut out for fear of trusts, then it must substitute something else. What should that substitution consist of? A BTG SCHEME.

‘T believe that the plan should he to give additional powers to the Board to oiinlilo it to review the whole position. value the works, not only as producing units but having regard to their economic value, and also to their value as an insurance factor, and that sum should be set aside by Parliament for the Board’s use, to subsidise' such works as in its judgment it considered it desirable or necessary to maintain, if in its opinion such works could not function profitably without some help. I observe that in New South Wales there is a plan of this kind in operation, or under consideration, and 1 think it is necessary in New Zealand. It is unreasonable to take steps which depreciate and destroy tho value of good security by rendering it njpa-transferable, and consequently useless to the only capital we can avail ourselves of. Unless there is an alternative method of providing such capital, it is the duty of the Government, through tfie Board; either to provide tlio alternative, or to abandon its plan. POWER OF TRUS'BS.

“ We have every reason to continue our precautions against the operations of trusts in this country. The fight between the two great packing combinations, Swifts and Vestcya, in South America lias revealed the danger arising from ,su«h combinations. Any understanding between surtli huge interests would put the South American producers at their mercy, and on the other hand the fight between them for supremacy just now has resulted in hammering down prices at Smitlifield so that producers all over tllio world are suffering in consequence). The enormous power which Vcstcy and Company possess through their numerous subsidiary companies, as well as the Union Cool Storage Company, is not fully realised. THE TRADE IN BRITAIN.

“ There is a feeling oil the part of many producers that the Meat Board is not doing all it should do in combating the influence of trusts. I confess I am unable to see what more it could do at the other end. While there is a belief that the disparity between what the consumer nays and what the producer receives is much 100 great, it is difficult to get at the truth because of many different classes of trade, and differences in the quality of the meat they sell It is not uncommon, to find stalls selling New Zealand lamb at less than Smitlifield wholesale prices. Examination reveals these to be the cheaper cuts of damaged parcels of inferior lamb. On the other liaiul the best cuts in high-class shops are dear, and arouse comment. Tn the Midland districts second quality lamb brings prices which are sometimes superior to the Smitlifield prices for prime. Tl is not uncommon to see" an account sale with seconds at Is, and prime at lid. The suggestion is, of course, that there is something wrong with our system of grading. Hie faot is that certain classes of trade require certain grades of meat, ancl when there is any shortage they have to pay for