“UP AGAINST IT"

Southland Times, Issue 18833, 28 May 1920, Page 6

“UP AGAINST IT"

END OF MEAT COMMANDEER. NO CHANCE OF RENEWAL. STATEMENT BY THE PREMIER. (Per United Press Association.) WELLINGTON, May 27. The Prime Minister attended tne conference of produceis this morning, and spoke r.. the meat commandeer and its conclusion. They were up against a crisis, said Mr Massey, and ho hoped they would be able to arrive at a satisfactory solution of the problem with which they were faced. He read a considerable amount of cabled correspondence which had taken place between himself and the High Commissioner and the Secretary of State on the subject of the meat commandeer, la one telegram he said that if the congestion at the London docks was not relieved New Zealand producers would suffer such conditions as - to cause a financial crisis in New Zealand, and he therefore requested the Imperial Government to arrange for the supply of insulated tonnage. At the same time he urged that every effort shotdd be made to induce the Imperial Government to extend the present purchase arrangement to June 30, 19J I. The Secirtary of State replied that the Imperial Government had decided that it was unable to extend the meat contract. Then (he Board of Trade reported that the price of mutton at Home had been reduced to Od per lb, and again the Imperial Government said it was unable to continue the meat contract to June, 1921. In another telegram to the High Commissioner, he had pointed out the injustice that was being done to New Zealand by preference being given to ships carrying meat from the Argentine, and he sent to the Secretary of State a cablegram stating that the position of affairs was causing considerable anxiety in New Zealand.

Mr Massey read a further telegram he had sent to the High Commissioner. In answer to one message, the Secretary of State said that he had taken up the matter personally among his colleagues, and hoped to be able to give a reply at an early date. He (Mr Massey) cabled the High Commissioner stating that he felt considerable anxiety regarding the prospects of the frozen meat trade. The New Zealand stores were full to their utmost capacity, and even under the best shipping arrangements for the despatch of the Imperial meat there would bo serious congestion. That, combined with the delay in connection with the new season’s output, would depreciate the value of live stock and would create serious financial difficulty. Only the provision of the greatest amount of refrigerated tonnage would enable the position to be met. A recent Press Association cablegram from Australia stated that Australia had been able to renew its contract with the Imperial Government. The High Commissioner cabled him that he could not give an official reply to the cablegram, but ho was informed unofficially that the Board of Trade had not authorised an extension of the Australian contract. He (Mr Massey) was advised officially from Australia that the contract was to continue in force for a period. Yesterday he received a cablegram from the High Commissioner stating that Imperial control over home-grown meat would cease on July 4 and they would have a free market. “It is impossible to say.” reported the High Commissioner, “what effect the cessation of control over home-grown meat will have as far as we are concerned."

There was, said Mr Massey, a general impression that Government control in England had kept up the price. That was not his experience. There was also an impression that the release of control would have the effect of putting up the price. Very often it had the opposite effect. He noticed that directly Imperial control ceased prices went down, the reason being that up to that date the market had only been supplied with just sufficient for its requirements. The High Commissioner’s cablegram added that the consumption of mutton had reached the pre-war level: He was of opinion that the future depended largely on what was done in the meantime to keep the Imperial Government up to the requirements of the situation. He considered that the present prices ruling for New Zealand lamb (should be reduced, but the price should not weaken greatly. In a later telegram the High Commissioner said he was informed by the Board of Trade that in regard to the congestion at the docks there was sufficient accommodation for arrivals. Only one steamer was unable to discharge at London. In a later telegram, the High Commissioner said that the Board of Trade expected to be able to provide 12.750,000 cubic feet of insulated shipping between July and November, equal to -1,200,000 carcases. He was unable to get the names of the steamers. This morning, Mr Massey continued, he received an important telegram from the Secretary of State, who said that His Majesty’s Government felt bound to reexamine the situation. The amount of mutton in store was very excessive and etery effort was being made to deal

with an abnormal situation. No ships were awaiting discharge through lack ot storage, increased consumption was following on the substantial reduction in price. In spit-s of all that there was no reasonable prospect that consumption at Home could overtake the supply, and there was every prospect that the over-supply of the market would continue well into 1921. "His Majesty’s Government is therefore reluctant to increase its commitments by any purchase in respect of the 1920-21 season which would only increase the difficulties in dealing with supplies. The purchase would, in our opinion, only increase the difficulty to be experienced in conducting the new season’s operations. For these reasons His Majesty's Government docs not see i*s way to depart fiom tor ; # isi(ion ol March 13.”

"We are up against it,” said Mr Massey, after reading the cable, “and it is just as well to know what the position is. The commandeer ends on June 30, and there is not the slightest chance of having it renewed. It is just as well to know it so that the best arrangements can bp made, and I hope the best arrangements will lie made." It was estimated that at the end oft, December the Imperial Government would have in store here 3,000,000 carcases. By that time the new season’s killing would have commenced. Nobody could he certain as to what ships would be available, but he believed that space would he available for from two to two and -half million carcases.

Mr Massey added that since March, 1915, t!ie producers hud received on account of Imperial supplies £138,000,000, and there was £8,000,000 or £10,000,000 to come. The commandeer was the best arrangement that could ever have happened to New Zealand. They now had (o attend to their own business and get hack to pre-war conditions. 'The Government is not going to let the producers down," he added. (Hear, hear. I "I have not. had an opportunity of putting a recommendation before the Cabinet, but 1 know the opinion of my colleagues, and the} - are all concerned in the welfare of the producer. I want you to take the opportunity of meeting together and set up a finance committee to tell the Government what you want. When we know your requirements to a reasonable extent the guarantee of the Government will be placed behind the producers until the Imperial meat is disposed of. (Applause). I do not think the Imperial Government will insist on getting the last carcase of meat out of the stores before we can send our own meat to London. I believe they will allow part of our meat to he sent to London before their meat is totally discharged. I want to assure you that we find ourselves in a difficulty. We arc all producers, and are all interested in the output of our produce, and if this Hireling of experienced men can suggest anything to ease the position and preserve the interest of the producers the Government will be quite willing to act up to it.” (Applause). % The Prime Minister, in outlining the position as far as Imperial Government-owned meat in store in New Zealand is concerned, after giving details of the shipping arranged for and expected, said there would be meat in store in New Zealand as at December SI imxt an equivalent to 3,000,000 601b

freight carcases, plus killings coming into the 1920-21 season. Up to that date he believed the position would be better than v/hat he thought. The meat in store would be reduced by December 31 to 2,250,000 carcases. He thought that if some months ego the producers hud asked the Imperial i Government to extend its control for the I pu:chase of meat beyond June 30 next, that I might have bten done. However it was clear that it waa not going to be done now. “But, he added, “I am sure the Imperial Government is not going to let New Zealand producers down.”—(Applause.) They have always been willing to meet us anr! they will enn'-'mip to -’o that.”

In replying to'questions, Mr Massey said he held th* - opinion that fh a Imperial Government would place no difficulty in the way of producers finding other markets for meat. In fact he thought he could pay that the producer; would receive every encouragement possible.

Sir Walter Buchanan remarked that he had been told that on July 1 next ho would not be able to ship ur.lo ;s he entered into a compact with the shipping companies. Mr Masrey said he knew nothing of any commitments.

In reply to another question, he said that there would be no objection as far as he could .-ee offered to New Ze: land meat going to the United States. “What I do object to,” he added, “is any meat iru.-t petting a foothold in this country. The New Zealand Government will place every difficulty in the way of that. There can be no objection to New Zealand meat being sold to America, but where I do draw the line is against any meat trust owning works in this country.” He had hp r n trying to lind out when the Imperial Government would relinquish control of shipping, but he had not so far been successful. However he did not think it would last much longer, He referred to insulated tonnage. There were 251 British insulated vessels and 51 more building as at December 31 last. Reverting to the American meat market, Mr Massey said he had been watching most closely the evidence of the American Meat Trust. He could only say (and he said it in all sincerity) that it would not be a good day for the producers of New Zealand or any other country if the American Meat Trust obtained a footing in it.