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5. Whether, in the event of the auction system being continued, it is desirable to encourage the 'practice of group buying by butchers. I am in agreement with, opinions expressed in the majority report relative to clauses (1) and (2), which refer to and describe types of group-buying systems, but cannot agree in full with clause (3) in that, while, conceding the importance of availability of meat-supplies on a hook basis, for such numbers of master butchers who do not or are not able to purchase live-stock I am of the opinion that such supplies should be pricecontrolled in direct relation to the retail recovery value. I agree with the summary to these clauses where it states that each of the expressed forms of group buying has merit and while also agreeing that action by the State toward the extension of any of the named forms of group buying may not be required, I do consider that the State should take action under the provisions of the Control of Prices Act, 1947, to the effect stated in the ultimate paragraph of the preceding clause. I also agree with the comments that under a group-buying system the butcher is relieved of the responsibility of purchasing his own stock and can apply himself entirely to the conduct of his own retail business. This aspect of a changing and increasing tendency on the part of the retailer has been referred to at various stages in the report, and evidence from wholesalers indicated that preference for supplies on a carcass basis, according to weight and grade, was increasing. The necessity for accuracy in purchase while meat is subject to grading and price-control is probably the greatest factor influencing master butchers to make this change of buying practice. While agreeing that opportunity should exist for individual master butchers to see and select stock on the hoof, I disagree with the opinions expressed that one can best judge quality on the hoof, as in my opinion—(l) Selection of type and condition only can be done on the hoof. (2) Quality and grade are factors that can only be determined with accuracy after slaughter. (3) The vast majority of export purchases are made on the hooks on a weight-and-grade basis. This would appear to indicate which method of purchase is most accurate and gives the maximum protection to both purchaser and vendor. (4) Under a system of weight and grade purchase the producer receives the true value for his product and the butcher purchases his requirements with accuracy. (5) Error in judgment in selection and purchase of live-stock, followed by subsequent grading down after slaughter, causes financial loss to the butcher which influences him to change his method of purchase to the more accurate method of carcass buying from a wholesaler. (6) It is stressed, however, that those butchers who desire to buy alive can do so by purchasing on the hoof, thereby pitting their judgment against the alternative method of carcass purchase, which conveys security of purchase. In my opinion, the final paragraph of this section of the majority report contains a direct negative to former recommendations made—that the butcher should himself help to save on costs and to modify price-fluctuations by the formation of buying groups —as prohibition of any such action on the part of the master butchers which would effectively maintain stock values at levels directly related to the retail selling-price is threatened by reference to the Commercial Trusts Act, 1910, which prohibits any attempt by any person or persons, &c., to wholly or partially influence or control the supply or demand or price of any goods, as any action on the part of master butchers to form buying groups would be ineffectual unless live-stock values could be steadied and maintained in close proximity to a basic wholesale price calculated through to retail-price-order values.
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