THE MEAT POOL.

Taranaki Daily News, 9 February 1922, Page 5

THE MEAT POOL.

PREMIER EXPLAINS BENEFITS BIG SAVING TO PRODUCERS. BILL DISCUSSED IN HOUSE. By Telegraph.—Press Association. Wellington, Last Night. In the House to-night the Premier moved the second reading of the Meat Export Control Bill. Mr. Massey said the Bill was the outcome of a feeling that the producers were not getting their full share of the proceeds Tof sale on the overseas market. He detailed the steps leading up to the recent representative meeting of all concerned in the meat producing industry, which discussed and approved proposals for the formation of a scheme for the introduction of a compulsory meat pool. This meeting appointed a committee, which investigated matters connected with the industry, and gave valuable assistance in formulating the proposals which were now embodied in the Bill.

Mr. Massey quoted the opinion of various bodies favoring the proposals, including an expression from the British Empire Producers’ Association of willingness to assist the Dominion producers to secure better marketing of produce and avoid unfavorable exploitation, which had occurred in the past. Mr. Massey said he believed the time would come when the producers of Britain would combine with the Dominion producers and take action to secure sortie sort of preference, either in the form of a preferential duty or remissions on feights. He added that when other countries closed their doors against us he could not see the wisdom of opening our doors to them. He quoted messages from Liverpool, Manchester, Hull and Bristol trade organisations promising aid. PROPAGANDA AT HOME. Referring to the opposition, Mr. Massey mentioned that he had received yesterday a message from the High Commissioner stating chat a cable appeared in the London Daily Telegraph to the effect that owing to a glut of mutton in New Zealand, all cold storage space being full, mutton was selling at seven shillings a dozen. This Was the first propaganda ro "bear” the market -for our meat. The Prime Minister reviewed what had been done during the war period to place New Zealand meat on the market, and traversed events leading up to the legislation of 1918 to prevent trusts getting control of the New Zealand meat trade. He considered the Bill now before the House would afford the fullest protection possible to producers. He said some big meat ekport companies were against the Bill, but a number of them were anxious to work in conjunction with the Government in running the pool.

It was not proposed to have one big pool for the whole country. Each freezing works would be a separate pool, so there would be no competition between the various works. The difference in seasons rendered this advisable. The pool would not operate till the meat entered the works. It would not affect export companies’ contracts during the current season.. The duties of the board to be set up would be to regulate shipments, so as to avoid a glut in the English market. The regulation of shipping by obviating unnecessary running to pick up cargoes would result in lower freights. The pool by combination would have to reduce the cost of production. The cost of landing our meat in Smithfield was: Lamb 3|d per pound, mutton 3jd, and beef 3%d. Mutton which .sold in the Smithfield market before the war at 4%d per pound for a sixty-pound oarease gave the producer here 15s. Today the same carcase at the same price gave the producer only 6s 3d, showing iiow the cost of getting meat to the market had increased. SUCCESS WORTH £2,000,000. New Zealand, in the last eight years, had supplied 63.21 per cent, of the iamb sold in Britain and 43.23 per cent, of the mutton. If they could make a success of the pool the producers should benefit to the extent of £2,000,000 per annum. This should not entail any increase in price to the British consumer; it would simply “be the result, of more economical methods of production and marketing. He noticed that nearly all the Chambers of Commerce were against' the pool. Wires were being pulled in all direction's to obstruct it. The Minister for Finance is empowered to guarantee advances on meat at the current bank rate qf interest. He did not think it would be necessary to raise a loan: he believed it would be quite sufficient to have the Government’s guarantee behind the producers’ board. Shipping charges must be reduced, which could be done by lessening the time on the New Zealand coast. Amendments would be proposed to allow stock salesmen a seat on the board and to allow the right of appeal against the decision of the Minister for Finance In connection with

advances. Mr. T. M. Wilford (Leader of the Opposition) said the Liberal Party desired to assist farmers in getting together for the better marketing of produce. He quoted a statement by the Minister fqr Agriculture on a former occasion that what was really needed was the establishment of efficient centres of distribution in Britain in <wder that the trust methods may be combated. In that statement he put his finger on the real difficulty. If markets were available at the places mentioned by the Prime Minister, how wa's it that the trusts referred to had not taken advantage of them? That was a curious phase of the matter which he (Mr. Wilford) could not understand.

CONTROL IN ENGLAND. Mr. Wilford asked what would be the exact relation of the producers board to the Government, which would do the controlling. He also asked how it was proposed to sell meat at Home, mentioning that in London first-class shops sold fresh as well as froze-., meat, if they did not they became third-rate shops." Referring to the financial provisions, Mr. Wilford asked how it was propose’, to determine the amount advanced to producers on shipping meat. He did not believe the pool would affect the price of meat, but it was possible to make it a useful means of helping the producers to get the best return for their meat when it reaches the market. e .

Mr. D. Jones (Kaiapo’i), reviewing the circumstances leading up to the initiation of the movement which resulted in this Bill, said prices at Home reaeatly were extremely low, owing to

large accumulated supplies, and it was prophesied by the meat trade authorities that prices would go lower. These stories of accumulations were not substantiated. The pool, by utilising the experience of mercantile firms with their machinery, would benefit the producer. Mr. Jones said the Bill was not concerned with retail sales. The Government had received offers from big retail firms to undertake sales, but these were not entertained. The pool was designed to co-ordinate production and placing on the whqlesale market so as to giva the producer the best return. Mr. H. E. Holland (Leader of the Labor Party) said that while the Labor Party favored the State marketing of meat, it wanted to see the workers re- •' presented on the board of control. It also wanted to see that the price of meat to the consumer in New Zealanc was not increased. The Hon. W. Nor worth}’ Raid the position of mercantile firms had been referred to and a plea put in for them, as they had advanced £25.990,000 to farmers, but he would point out that the State had advanced £27,000.000 to farmers, so that the State was juet as much interested as mercantile firms. Mr. Holland had raised the issue of the representation of small farmers on the board; that was being watched, and the franchise tor the election of boards would be made as wide as possible. Coming to the wages question, he said everything depended on the prices ob- i tained for primary products. The meat pool, when first suggested, was hotly opposed here, in Australia, and in Britain, but when these people found the Government was behind the scheme they desisted in opposing it, with the result that the prices to producers had risen by substantial percentages. That was the direct effect of the pool, and served to show what would have happened to the producers had the Government not stepped into the breach- first. Mr. G. Witty (Riccarton) denied that the rise in prices was in any way due to the suggested pool. That rise was due entirely to a shortage in world supplies. The prices of Australian lamb had risen higher than New Zealand lamb, without any pool behind it. Not everyone was in favour of the pool. He had received many letters protesting against it. He believed the power behind the pool was a desire to keep Armour and Co. out of the meat business. Mr. A. D. McLeod (Wairarapa) contended that while the whole of the recent increases in the prices of meet may not have been due to the suggested pool, there could be no doubt it was largely responsible for the improved markets by cutting the grown I from under the feet of the speculators. The Bill was- road a second I'm*. Th° .House went into committee an I ra*>'‘il J the short title and rose at 2 &.m.