I.—loa

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18. New Zealand's area of good land is limited, while that of the Argentine is practically unlimited. Land equal to the best land in Hawke's Bay can be bought in Argentine at £7. Evidence was given here that our land-values are about three times that of the Argentine. Farm wages in New Zealand, nominally £5 per month; in the Argentine, £2. Our distance from British markets, nominally 13,000 miles; Argentine, 7,000 miles. Present flocks in New Zealand, 19,000,000; "in the Argentine, 100,000,000. Exports of sheep and lamb from New Zealand, January to September, 1903, 3,980,000 ; same period from the Argentine, 2,328,000. Argentine quality: The evidence showed that the Argentine quality was steadily improving; some witnesses contending that best Argentine was equal to North Island, Otago, and Southland brands. Argentine has for some time back practically dominated British hard-meat market. When she raises prices, ours advance ; when she reduces, New Zealand falls in sympathy. 19. Summarising the position, your Committee find : " That the New Zealand meat trade is in a healthy condition ; that our products are widely distributed ; that the New Zealand grower is at present receiving satisfactory returns for meat; that the prices for 1902-3 being the highest on record for the past nine years; that New Zealand has, for a time at least, reached her limit of output; that it is of the first importance that she should devote herself to maintaining and improving her quality ; that New Zealand can easily place her whole present output at reasonable rates ; and that, as New Zealand and Argentine alike are doing well, the time does not appear opportune, nor does it appear to be necessary, to venture on a system of trade rivalry with a country whose meat satisfies many of our customers, and which, in case of severe competition, can afford to sell to a profit at much lower rates than can be done by us. In the opinion of the Committee the inevitable effect of the establishment of shops would be severe competition with Argentine, and a certain fall in values; that insurance rates should be reduced and the methods of assessment be reformed. It may not be out of place in concluding this report to review briefly the history of New Zealand frozen lamb and mutton export. This year, 1903, the trade attains its majority, and a vigorous growth it has had from the modest 2,000 carcases exported in 1882 to 4,636,537 exported in the year ending March, 1903. It is a trade that has almost revolutionised Great Britain's imported-meat supply. From the inception of the colony wool has taken the highest place in the list of New Zealand exports, and it could hardly have been expected that any other of the colony's products could have approached that high position. The frozen mutton and lamb exported for the year ending March, 1903, nearly equalled the value of wool exported for the year ending December, 1902. The value of wool exported for 1902 was £3,354,000, and the export value of the 4,635,000 carcases of mutton and lamb for the year ending the 31st March, 1903, was £3,229,636. The latest wool returns, however, show an increase in quantity of 3-J- per cent, and value of 28 per cent. If to the total of frozen meat exported there be added—the value of tallow, pelts, and wool shipped by the freezing companies—the total amount of their exports reach the sum of £4,524,836 for year March, 1903. In 1882 the condition of our flocks left much to be desired. Of the total 12,398,000 many were scab-infested, while the rabbit pest threatened to almost destroy our pastoral future. To-day the colony's flocks are—and for years have been—absolutely free from disease, and the rabbit nuisance has been materially checked. The history of the meat trade during these twenty-one years is little short of marvellous. Beginning in 1882 with a total of some twelve million —chiefly Merino sheep—two-thirds of which were in the South Island, we have exported nearly forty-one million carcases, besides eradicating scab and increasing the permanent stock by seven millions. A glance at the position New Zealand now occupies in the British frozen-meat market is equally satisfactory. In 1882 the flocks of Australia and the Argentine were vastly in excess of ours; yet statistics show that of the total 83,801,000 carcases of frozen mutton and lamb imported into Britain since the commencement of the trade, New Zealand contributed nearly onehalf or 40,732,000, while the Argentine follows with 30,072,000 and Australia with 12,997,000. It may be mentioned here, parenthetically, that Australia had entered the frozen-meat trade two years prior to New Zealand doing so. A careful study of these figures reveals the successful development of an industry probably unparalleled in the history of the world. The fact that the colony has been able, not only to provide such a vast number for export, but at the same time to also increase her flocks by some seven millions, is evidence of the enterprise, resource, and energy that have been displayed by the pastoral community. After carefully considering the question in all its bearings, the Committee cannot recommend proposals which might seriously interfere with trade methods —methods that have demanded and have received years of careful thought to evolve and render suitable for the working of the trade —a system which, with all its shortcomings and mistakes, has resulted in fairly satisfactory prices being now returned to the sheep-growers of the colony. Eivalry by other countries is inevitable. For many years New Zealand had been told that this would be the case. The results, however, show that, notwithstanding the increased meat-productiveness of rival countries, New Zealand has more than held her own, both in price and quantity. Should unforeseen difficulties, however, occur, New Zealand will, we think, be able to effectively deal with them as they arise. In the meantime the Committee, before recommending any change such as that now proposed, would require to be well persuaded that our present strong position would not be thereby imperiled, and that greater benefits would result than those now enjoyed, and this the Committee has not been able to realise. Thomas Mackenzie, Chairman Extension of Commerce Committee. Wednesday, 11th November, 1903.