MEAT EXPORT.

Taranaki Daily News, 17 June 1921, Page 8

MEAT EXPORT.

GOVERNMENT CRITICISED. ALLEGED NEGLECT OF PRODUCERS’ INTERESTS. Sharp criticism of the action of the Government, in its handling of the meat situation, with particular regard to the steps taken by it to prevent the establishment of the American Meat Trust in New Zealand as licensed exporters of meat, was expressed by Mr. J. W. Harding, of Inglewood, Taranaki, in an interview with a representative of the Wellington Times last week. Mr. Harding glanced retrospectively into the contemporary history of the frozen meat industry in New Zealand to as far as eight years ago, when he was, he said, tre largest individual exporter of frozen meat in the Dominion. At that time he had a contract to supply frozen meat to Eastman, Ltd., London. The dockers’ strike, however, led to its cancellation. Armour and Co., seeing the vast accumulation of meat in the cool stores at Home, purchased it at a penny per pound. Breeders were forced to accept the price, or pay 8s 6d per ton to have the meat taken to sea and dumped. By this means the Armours were able to secure control of 60 per cent, of the frozen meat arriving in England. “The . New Zealand Government,” said Mr. Harding, “have sold, some months ago, several million carcases of lamb and mutton to Armour’s, for export to the United States. Similarly, the Imperial Government sold to Vestey Bros, a large quantity of beef, which came through the New Zealand Government; the condition of this sale was that the beef should be exported to the Continent. In each case the meat has been re-shipped to Great Britain, and sold at low prices, to secure a controlling position in the market. Our Government said, when introducing the 1918 Act, that it would not grant a permit to secure an exporter’s license to supply other than the British market, yet it did not impose a condition on the British Government not to sell New Zealand to America. With a capital in the vicinity of £50,000,000, it is not difficult to foresee the American Meat Trust getting absolute control of the New Zealand meat, despite the precautions of the Government, because they can purchase the meat after it has been bought from us.

“1 visited the Argentine five years ago,” said Mr. Harding, “and saw for myself the operations going on there. The price was reduced to the consumer, certainly, but, when the price gradually rose, the increase was not attended by higher prices to the producers, in time, as was to be expected, the La Blanco and La Plate shareholders were forced to sell, their interests to the Trust. I have discussed the present situation with many shareholders of freezing works in New Zealand, and, if they were offered anything like a fair price now, they would cheerfully sell out.

“With a Meat Trust buying from the British Government, as is now the case, the net price to the producer is 5d per lb for prime ox, and 4d per lb for cow beef, the charges, -from the stockyard to the ship’s slings in London being 4y 2 J« without deducting hides, tallow, and sets. If the New Zealand producers could put their meat on the open market in England, they would reap the benefit of the present prices— Is 3d for ox and lid for cow beef, less charges on the same basis, namely 4ijd. “The solution of the present problem of the export of meat,” said Mr. Harding, “lies in the Government arranging with the Imperial authorities that the Meat Trust be not allowed to purchase New Zealand meat for resale in America and Great Britain, to the manifest detriment of the Dominion’s interests in the trade.” ACTING-PRIME MINISTER’S REPLY. MR. HARDING’S STATEMENTS. Sir Francis Bell (Acting-Prime Minister and Acting-Finance Minister) replied next day to the above statement. “Introducing it with the comment, ‘sharp criticism of the action of the Government in its handling of the meat situation,’ this morning’s New Zealand Times,” said Sir Francis Bell, “reports an interview with Mr. J. W. Harding, of Inglewood, Taranaki, who informs the public, through the columns of the Times, that ‘The New Zealand Government haii sold some months ago, several million carcases of lamb and mutton to Armour’s for export to the United States.’ ” “This is news indeed, said Sir Francis Bell. “I had not heard before that the New Zealand Government owned any carcases of lamb afid mutton, except a few sheep on the State farms, or that it had effected a sale of the kind mentioned. Further, I had not heard that the New Zealand Government had had any transactions with Armour’s, whether for export to the United States or otherwise. As Acting-Finance Minister, I should be glad to have particulars of these transactions, the proceeds of which do not appear to. have reached the Treasury; and as Acting-Prime Minister, I should really like to have a copy of our contract with Armour’s. “The statement I have quoted is quite incorrect. Indeed, it is absurd; and I should not have referred to it at all but for the fact that a statement of I that kind appearing in such a paper as | the New Zealand Times will doubtless j be quoted in America to the detriment of the New Zealand Government and in condemnation of its action in respect of Armour’s, which has recently beeu the subject of attack.” DEPARTMENTAL REPLY. A Times representative was informed by the Imperial Supplies Department that Hie sales of mutton and lamb in 1920 for shipment to the United States of America were made by the Imperial Government from their stocks in New Zealand, and were not made by the New Zealand Government. The sales, which comprised 2,382,347 carcases of lamb and 464,463 carcases of mutton, were made to 21 different purchasers, including Armour’s, the balance being mostly British firms. It is understood that approximately 80 per cent, of the total American purchases of mutton and lamb were consumed in the United States. • It was further stated that the stocks of beef purchased by Vestey Bros, from the Imperial Government were primarily intended for the Continent, but this was not a condition of sale, and the financial and political conditions which prevented the disposal of a large proportion of this beef on the Continent had no doubt resulted in a conaideraible loss jto the Rurcliftsers.