5

H.—3B

System of Payment for Meat. The system of payment for meat adopted at the outset of the scheme has been considerably altered as a result of the payment of advances under the authorities mentioned above. When the requisition originally commenced no payment was made until the meat had been placed f.o.b. ocean steamer, but since June, 1918, the payment of advances has necessitated an alteration in this arrangement. At present debit notes are received from freezing companies in respect of meat killed and remaining in store for a period of six weeks, and an advance representing 75 per cent, of the value of all such meat is paid on due date. When shipment is subsequently effected 25 per cent, only of the value thereof is paid to the freezing companies, and the balance is applied towards the reduction of the advance already made. In some cases, by direction of the Imperial Government, certain classes of meat have been given preference of shipment, and as a result meat has been shipped which has not been in store for the full period of six weeks necessary before advances are due. Under such circumstances the payment of the full value of the meat is made at time of shipment, and the advance is accordingly reduced when it subsequently becomes payable. There has been no change in regard to the submission, of documents for shipments, and freezing companies are still entitled to draw on. the Department free of exchange in respect of any shipments made. They are also entitled to show in their shipping invoices the apportionment which they desire should be made of the total amount of the invoice, and cheques are remitted direct to the freezing companies' clients, thus avoiding the payment of exchange and the duplication of documents which would otherwise be considerable. A similar arrangement has also been made in connection with advances, and in cases where freezing companies desire payment direct to clients a direction accordingly on the relative debit notes receives the attention of the Department. Funds for purchases and for advances are obtained weekly from the Imperial Government, and the method adopted is for the Controller to make an estimate of the amount which will be required during each subsequent week and to advise the Treasury, which cables the High Commissioner to obtain the amount from the Imperial Department concerned and credit the New Zealand Public Account. These requests are promptly honoured, and little difficulty is experienced in obtaining the funds required for payments due from time to time. The following statement furnishes particulars of frozen meat in store and of shipments made in 60 lb. carcases from the inception of the requisition to the 31st March, 1919 :— In store on— 1915-16. 1916-17. 1917-18. 1918-19. April 30 .. 1,792,362 2,304,258 2,946,781 4,082,323 May 31 .. 2,048,454 2,642,362 3,290,072 4,794,787 June 30 .. 2,165,342 2,480,846 3,483,324 5,230,000 July 31 .. 1,865,283 1,892,504 3,383,235 5,314,602 August 31 .. 1,410,167 1,396,540 2,949,545 5,233,308 September 30 .. 665,992 816,933 2,873,277 4,970,053 October 31 .. 199,936 367,975 2,557,881 4,576,942 November 30 .. 140,836 161,311 1,890,489 4,446,726 December 31 .. 597,817 451,361 1,915,451 4,293,315 January 31 .. 1,093,300 1,137,438 1,954,490 4,992,719 February 28 .. 1,575,336 1,901,085 2,609,618 5,766,815 March 31 .. 2,152,250 2,409,541 3,398,364 6,567,871