H.—44a.

In this connection it is interesting to note that in 1933, when Sanford Ltd. adopted a vigorous sales policy in Australia, it was noticed by them with some alarm that, in contradistinction to the position respecting local requirements in Auckland, there was a marked preference for tarakihi fillets over snapper. With a market in Australia not unlimited in its scope, this state of affairs, if allowed to continue, was significant in the detrimental effect it was likely to have upon the sale of snapper, the principal fish taken in Auckland waters and for which the Australian market was an outlet. The growth in sales of tarakihi from ports other than Auckland has accentuated the problem and was in part a contributory cause of the recent accumulations of Auckland snapper in store in Sydney. Any such realignment as may be required in the markets for these two varieties and for others more or less competitive is a matter not soluble at the moment, but is one which can onlv be dealt with by a supervisory body co-ordinating export marketing. Recommendations relative to a reorganization of the wholesale units operating in Auckland and Thames appear under " Wholesale and Retail, Auckland." The Committee's interim recommendation relative to the immediate problems dealing with export from Auckland has already been put into effect by the Government in the establishment of the Auckland Fish Export Committee as now constituted. Wellington. Exports of frozen fish from the Port of Wellington during the years ended 31st March have been Cwt. Cwt. 1931 .. .. .. .. 3,668 (including blue cod 2,141) 1932 2,789 ( „ 1,976) 1933 1,591 ( „ 688) 1934 11,097 ( „ 8,972) 1935 17,553 ( „ 15,209) 1936 15,820 ( „ 12,668) 1937 13,144 ( „ 9,422) 1938 (6 months) .. .. .. 6,084 Apart from blue cod, 9,442 cwt. of which out of a total of 13,144 cwt. was exported in 1936-37, the export of fish from Wellington is not extensive. It amounts to a small seasonal surplus for several of the summer months, and during part of the remainder of the year (particularly in the winter) Wellington itself is sometimes in short supply. The export trade is conducted by both the N.Z. Fisheries, Ltd., and the Fishermen's Co-operative, Ltd., and also by a small firm which exports crayfish only. Reference is made elsewhere to the competitive f.o.b. quotations being lower in ports other than Auckland, but here in Wellington one line—i.e., snapper, heads off and scaled—is actually quoted and sold at W. per pound higher than the same product exported from Auckland. Two interesting features about export from Wellington are, first, the preparation of kippered fillets of barracouta for the trade —barracouta being brought in by the trawlers and is practically unsaleable locally—and, secondly, the shipment to Melbourne and Sydney of extra large crayfish (whole cooked) which do not readily find a local market. It is unlikely that export from Wellington can increase to any appreciable extent—in fact, it is likely to decline in volume as local consumption increases. Chatham Islands. (South Seas Fishing Co., Ltd., and New Zealand Fisheries, Ltd.). —In 1933 the South Seas Fishing Co., Ltd., with an authorized capital of £15,000, was promoted with the object of taking blue cod at the Chatham Islands and marketing these in Australia. The company's vessel " South Sea," with refrigerated space for 50 tons of dressed blue cod, makes periodical trips to Wellington to discharge the catches of the six line-fishing boats which are operating for supply to the company and which fish into the vessel. In the initial stages of the company's activities heavy losses were incurred through overflooding the New Zealand market and quitting surpluses on the Sydney market at unpayable prices. A new directorate was appointed, but this made little difference to trading conditions until a marketing agreement was entered into with the New Zealand Fisheries, Ltd., which company has been selling Chatham Island blue cod in Australia in direct competition. Under the provisions of the agreement entered into as between the two companies the price payable in ship's slings, Wellington, is based upon the current f.o.b. Australian selling-price in Wellington, and this company should be able to operate profitably under normal conditions. At the moment, however, there appears to be some difficulty in selling in Australia the present stocks held on behalf of both companies at the relatively high price of Bd. per pound f.o.b. Stewart Island blue cod is, of course, sold competitively against the Chatham Islands product. Fortunately for these companies, the fishing ceased by arrangement in October at Chatham Islands, and no further supplies will be coming forward until February next. Weather and other circumstances permitting and in the event of the fishing being favourable, the " South Sea " would make eight trips to the Chatham Islands in a year and bring over 400 tons of blue cod —i.e., 50 tons per trip, or approximately 1,650 cases of 681b. net. The New Zealand Fisheries, Ltd., have an arrangement with the steamer " Tees " whereby this vessel is required to visit the Islands within a fortnight of request to pick up a load from the stocks held in the company's freezer on shore. The " Tees " has a refrigerated capacity of 1,400 cases, compared with the " South Sea's " 1,650, but both vessels in winter can take extra cases on deck if required. Quantities of hapuka have been brought across from time to time, but even at a payment of as low as Id. per pound green weight to the fishermen it was found impossible to market this fish competitively against the fresh hapuka in Wellington, nor would it be profitable to sell to Australia even if the

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