EMBARGO ON HIDE EXPORT.

Taranaki Daily News, 17 April 1916, Page 3

EMBARGO ON HIDE EXPORT.

TAKANAKI EXECUTIVE PROTEST. A special meeting of the Taranaki Provincial Executive of the New Zealand Fanners' Union was held in Hawcra on Thursday to consider the embargo which the Munitions Department has placed on the export of hides from New Zealand. Mr. R. Dtiim presided, and there were also present—Messrs. J. Swindlehurst, E. Maxwell, J. S. Barrow, B. Orr, J. Hodge, and A ,E. Washer. Mr. E. C. Jack, Dominion Secretary, wrote as follows: "I am directed to bring under the notice of your Executive the injustice which has been placed upon the farmers- by the restriction on the export of hides. As you are aware, the Government has prohibited the export of hides over 451bs weight, with the result that the buyers of cattle have reduced the price to the farmers in some cases by 2s per lOOlbs. If this were a question of real necessity farmers would no doubt be quite, willing to accept the position, but it is quite evident Hint the embargo is in the interests of a few dealers and tanners. On enquiry into the position we are reliably informed that the quantity of hides in the Dominion fat exceeds the requirements of the Defence authorities, but an account of the high prices for export the tanners have not been able to buy as cheaply as before, and in consequence their profits are not so large, and apparently they are secMrig to obtain the restriction on the export of hides, so that they can offer any price they like. When the embargo was put on, no minimum price was fixed, but when the matter was pointed out to the Government they fixed the minimum price, so that if the tanners would not pay that price evport would be allowed, but as a matter of fact the minimum price has become the maximum, and the meat companies have been forced to reduce theii price to protect themselves. As the price offered by Australia and Canada is much higher than the price fixed by the Government, it will be clear .0 you that the minimum price fixed by the Government really became inoperative, except that it prevents the export of hides above that price. This naturally means that if any business is to be done at all, 1c must be done on the tanners' terms. What this means to the companies is shown by the fact that for one company alone it means a loss of £SOOO on last year's figures. The position at present is that the companies -will refuse to sell their stocks locally, except on a market basis, and although they are anxious to give the farmers a fair price for their cattle they cannot do 0 in the face of the present position. It has been pointed out to the Government that the companies and also the farmers are desirous of helping the Government, but they object, and rightly so, to the tanners being able to purchase large stocks at the low prices, and when they have more than they require they will no doubt ask the Government to remove the embargo and allow them tn ship the surplus at much enhanced prices. This moans that the profits which should be the farmers' are beir.g handed over to a few tanners. We have .evidence op fore 11s that there is a very considerable difference, oetween the Australian and Xew Zealand prices at the moment. It" the Government were to pay the full'Wrket value of Jie hides it would only mak; a difference of £SOOO or £OOOO, but the loss to the farmers and the freezing companies is estimated to run into something like £100,001). The Government contract for ooots is for 100,000 pairs and (>vci! upon the estimate given by the Minister, that a hide would only make four pair.?, it is obvious thai only 2,1,000 would he required foi this purpose, and the Government estimate last year shows that 350,000 'attic were slaughtered, and an estimate from the same source is that 75 per cent, of these are over 4:">lbs, leaving an exportable surplus of 200,00(1, a;-, deducting the 25,000 required, an estimated surplus foi export of 235,000 hides. Therefore it might he asked, .vhere ;s the need foi the embargo? We, ,herefore, suggest that the Executives should take this matter into consideration and pass a resolution and ,end it to the Minister for Munitions."

After a short .iisoiission the' Chairman moved the following resolution, which was seconded by Mr. Si. Orr, and carried unanimously:—"That this Executive views with apprehension the reduced price offered for fat cattle, which, in our opinion, is due to the restriction.-! placed upon the export of hides of over 4">lbs, and that the enormous loss entailed upon the farming community is not justified by a proportionate saving to tho Government in the co?t of leather, it being evident that the embargo is entirely in the : ntcrests of the dealers and tanners, who are enabled to exploit the producers by offering the producers as a,msiximum the minimum prices fixed by the Government,; and this executive strongly urges the Government to commandeer the requirements at market values, and require from their contractors o reduction ; n price of articles supplied .wdcr the contracts, equivalent to any saving in the cost of raw material caused r.y tha commandeciing, Mid allow freedom of export for any surplus." It, wa« lurtiiti decided that a copy, of the 'resolution be sent to the —nist?v fc.-r Munitions and Supplies, tho Tarauaki numbers of Parliament, and th'j l'uminion Fxecutive.—Star,