EXPORT BEEF SUBSIDY.

Taranaki Daily News, 19 April 1922, Page 8

EXPORT BEEF SUBSIDY.

AUSTRALIAN SCHEME. j COSTS TO BE SUBSTANTIALLY REDUCED. CONTROL BOARD PROPOSED. Melbourne, April 10. An announcement that the Australian Government would pay a suosldy of ,%d a pound on exported beef, on certain conditions, was made by the Prime Minister, Mr. W. M. Hughes. He said the Ministry had come to the conclusion that the position was such as to warrant assistance by the Government. It would be hardly an exaggeration to say that the cattle-men of Queensland believed the present position of the industry to be desperate. Prices offered for beef for export now fell phort of the cost of production. It was an extraordinary, but nevertheless undeniable fact, that while literally tens of millions of people were on the verge of starvation, one of the staple articles of food could not find a market. There was another factor affecting the beef industry which had to be considered. The most powerful combination in the world dominated the. sale and distribution of beef in Great Britain, and in the greater part of the European markets. This competition had been of late most active. It had many advantages besides those of organisation and the unlimited capital that supported it. It was comparatively near to the great markets of the world, and Australia was remote. It also controlled to a la’ge extent the distributing agencies. Much of the stocks of beef held by the British Government, as the result of its war contracts, were still unconsumee, thus adding another factor which depressed the Australasian market, particularly by preventing the absorption of fresh beef. A SERIOUS POSITION. ‘‘That the position threatens the destruction of one of the greatest primary industries of Australia is beyond question,” Mr. Hughes declared. “In the circumstances I have been in close touch with the representatives of Queensland cattle-men, and with the representatives of meat exporters in the south, and having endeavored to review all the facts, have come to the following conclusions regarding the conditions under which the Commonwealth Government is prepared to assist the cattle, industry: “(1) All sections of the industry to co-operate in measures necessary to meet the situation. “(2) Workers to accept a reduction of wages equivalent to the decrease in the cost of living, thus leaving the standard of living unaffected. “(3) Meat works to reduce charges for treatment, the reduction to be equal to one-eighth of a penny over and above the lessened cost of treatment, due to reduction in wages, or,

alternatively, the meat works to give an extra price to the growere equivalent to such reductions in wages and treatment. “(4) Only standard meat properly prepared to be exported. The Commonwealth officers are to be supported by the industry in carrying this into effect. “(5) A meat board, composed of representatives of the industry, to be appointed to safeguard its interests and arrange for supervision, and, as far as possible, for control. 'Statutory powers are to be given to the board by the State law r s. “(6) Competent representatives of the industry are to be selected by the gi’owers to be sent forthwith to Britain to safeguard its interests and tp develop trade. Similar action is to be taken in the East. “(7) An effective propaganda is to be carried on to popularise Australian meat and combat influences of rival suppliers. “(8) A reduction to be made in beef freights of a lb. “Subject to these conditions being accepted, the Commonwealth Government will: “(1) Endeavor to clear old stocks of Australian meat in London. “(12) Give a subsidy of %d a lb. on I all beef and this season’s beef stored in cool chambers before October 31, and shipped not later than December 31, 1922: “(3) Review the basis of income tax valuation per head of calves. THE VARIOUS STATES. “These conditions,” Mr. Hughes concluded, “apply particularly to Queensland. Where they are inapplicable to other States the matter can be adjusted by separate negotiations. I have been informed authoritatively that in the case of Victoria, for example, the meat exporters are prepared" to guarantee that they will treat beef, and put it on board at a price not exceeding ]d a lb. The wages in Queensland m the meat industry are much higher than in the southern States. The price at which they are prepared to do the work in Victoria is a lb. less than those set out in the conditions for Queensland. Therefore, the request made by the Commonwealth is not impossible. The Federal Ministry will not have representatives on the meat board.”