13

MV-44

These tables show that if prime ox-beef alone were supplied to the public it was costing in the market the equivalent of 4'Bd., assuming the prices of skin, hide, tallow, and offal were as above, and was being retailed at an average cost of 5'7d., showing a gross profit of o'9d., or slightly under Id. per pound. The abattoir figures, however, showed that the proportion of cow-beef put-upon the Auckland market, was approximately 40 per cent, of the total; but no figures were available giving the proportion of second-quality ox or cow that went into local consumption, although undoubtedly a fairly large proportion of this meat is consumed, and on cow-beef and second-quality meat the profit is higher. There were too many small shops trying to make a living on ridiculously low turnovers. It was therefore evident that if the upward tendency of prices was to be checked it could only be done by a business where the overhead charges were small in proportion to the turnover. From evidence collected by the Board in the other centres —Wellington, Christchurch, and Dunedin— it was ascertained that those shops doing exclusively a cash-over-the-counter business and having a large turnover could successfully maintain retail prices on a level lower than those ruling in Auckland.- The Board therefore determined, with the consent of the Government, to give the Auckland butchers the option of drawing their supplies from the Imperial hooks conditionally on their undertaking not to advance retail cash-over-the-counter prices. After considerable discussion and various conferences between the Board and the master butchers the Board was informed by the Master Butchers' Association that its members could not see their way clear to continue selling at the rates then in existence, and they asked the Board's sanction to a new price-list. At this stage of the negotiations an offer was received from Mr. Douglas Reid, who placed his two retail shops at the disposal of the Government provided he was assured of receiving supplies from the freezing-works. The position was reported in full to the Acting-President of the Board (the Hon. W. D. S. Mac Donald), who advised the Board to accept the offer and to make arrangements to run the shops as State meat depots, delivery to be eliminated and bedrock prices to be charged. This was done, and the two retail businesses under offer in populous parts of the city were taken over on behalf of the New Zealand Government. The former owner of the shops remained in charge in the capacity of manager, and his original staff was also retained. After discussing the question of retail prices in detail with the manager it was decided that the retail prices could be reduced, and the manager entered into an agreement with the Board to maintain a scale of prices lower than those in existence in November. The shops were opened on the 25th January. A representative for the Board, who is an accountant in the Civil Service, was entrusted with the task of supervising accounts, and, under instructions, to furnish weekly statements of the trading to the Board. The statements received up to the 31st March show a satisfactory position. A half-yearly balance-sheet will be prepared, and . will be submitted to you in due course. From the 22nd January to the Ist March the association of butchers in Auckland adopted and maintained the new scale of prices to which the Board had refused its sanction. On the latter date, as the result of further negotiations, the association reinstated the price-list that had obtained from May, 1916. Shortly after the establishment of the State meat-shops at Auckland a strike took place among the chamber hands in the Southdown, Horotiu, and Westfield Freezing-works. This threatened to interfere with the supplies of meat to the Government shops, and, at the request of the ActingPresident, the Board of Trade inquired into the causes of the trouble, and after considerable negotiations succeeded in inducing the parties to the strike to refer the matter to a committee of investigation under the Industrial Disputes Investigation xlcl, with His Worship the Mayor of Auckland (Mr. Gunson) as Chairman, and ultimately a satisfactory settlement was arrived at. This method of dealing with an industrial dispute is worthy of note, as it was the first time that the machinery of this Act had been brought into operation in New Zealand. Applications were received by the Board for the establishment of State meat-shops in various parts of the Dominion, but owing to the legal difficulties in the way of extending the scheme the Board determined to give the butchers in those centres where prices wore high the option of drawing their supplies from the Imperial store provided that they agreed to sell at prices deemed reasonable by the Board. Arrrangements have accordingly been made at Gisborne, Masterton, and Taumarunui. At Hastings, Napier, Palmerston North, and Wanganui the, Board, after consultation with the butchers, agreed on a price-list, the butchers obtaining their stocks in the usual way in the open market. In these places, apparently, competition with freezing buyers did not, affect the prices to the same extent as in other towns visited. One of the difficulties in the way of evolving a general scheme applicable to those towns where freezing-works are established is the position of local abattoirs. Interest and sinking fund and working-expenses on these are covered by slaughtering fees, and municipal finance might be seriously affected if these charges were not provided for. The interests of the municipalities have accordingly in each case been conserved in the price-lists sanctioned, with the exception of Gisborne, where the Borough Council made other arrangements to provide for interest and sinking-fund charges on its abattoir loan. The Board confined the privilege of drawing supplies from the Imperial hooks to butchers already established, as it was felt inadvisable during the war period to increase the number of traders when men were so urgently required for other purposes. One effect directly traceable to the establishment of Government retail meat-shops in Auckland was the steadying of retail prices throughout New Zealand. Threatened rises in other centres and towns did not eventuate. The upward tendency of prices in the live-stock market was checked, while in Auckland an actual reduction took place. The Government Statistician estimates the annual consumption of meat in New Zealand to be approximately 240,000,000 lb. Kven Id. per pound saving on meat-prices means a relief to the consumers of a million of money. The Board does not claim that the action taken in respect to meat resulted in an all-round decrease of Id. per pound, but if allowance is made for the decrease actually effected and the check to further increases this sum may fairly be taken to represent the result of its operations.