The Meat Stabilisation Account
The Meat Stabilisation Account
After the inauguration of the economic stabilisation scheme on 15 December 1942, a second account, the Meat Stabilisation Account, was established. The Meat Pool Account had up till then received the difference between the receipts from the United Kingdom and the lesser amounts paid to producers. After the stabilisation date of 15 December 1942, the Meat Pool Account continued to be credited with these same differences, but any credits over and above these differences went to the Meat Industry Stabilisation Account. As a result, the credit to the Meat Pool Account per unit of meat, tallow, slipe wool, and so on was static after 1942, and annual variations in total credits to this account after 1942 were due to changes in the volume of produce handled.
The balances in the meat accounts from year to year are shown in the following table:
|Balances as at 31 July||Meat Industry Stabilisation Account £(m.)||Meat Pool Account £(m.)|
Before the commencement of the 1943–44 meat season, prices were adjusted to allow for increased costs and to encourage the production of heavier lamb carcasses in accordance with the desire of the United Kingdom Government for increased production. Increases were also granted in the price of ewe and heavyweight wether mutton, while adjustments were made in beef prices, resulting in increases in prices for the heavier weights of ox and heifer beef.
In November 1944, an agreement was concluded with the New Zealand Meat Producers' Board on increases in export schedule prices for the 1944–45 season. The letter from the Prime Minister to the chairman of the Board contained the following:
‘It is considered desirable that both the Meat Pool Account and the Meat Industry Stabilisation Account should remain within the Meat Industry Account as at present, but the whole of the proceeds from the recent increase in the prices of meat to be paid by the United Kingdom Government will be credited to the Meat Industry Stabilisation Account and will be conserved exclusively for the industry, subject of course to such debits against the account as are contemplated in the Government's agreement with the Farmers' Federation on the 18th June 1943. All accretions to the Meat Pool Account will continue as in the past and no charges other than those already operative will be made against it except in agreement with the New Zealand Meat Producers' Board. This arrangement would have to be subject to review, in the event of the resources of the Meat Industry Stabilisation Account being insufficient to meet charges against that account. I would stress again that the balances finally remaining in the Meat Pool Account and the Meat Industry Stabilisation Account belong to and shall be held for the benefit of the industry.’
These arrangements were subsequently confirmed by the Board.
Since any balances remaining in each of the meat accounts were to be held for the benefit of the industry, there seems to have been no real need to keep them separate. The fact that there was in each case a Government undertaking to meet any deficit in the account may contain the explanation. A certain amount of concern about the possible implications of these separate undertakings was indicated in the Prime Minister's statement, when he referred to a review of the arrangements in the event of the resources of the Meat Stabilisation Account being insufficient to meet charges against that account.page 331