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REPORT OF CONTROLLER The Hon. the Minister of Marketing. I beg to report to you on the operations of the Sheep-skin Control for the twelve months ended 30th June, 1946. Accounts. —A surplus of £12,387 12s. Id. was shown for the year. This has been transferred to the reserve account. The surplus is largely the result of increased pelt prices and the valuation of closing stocks on the basis of the market prices ruling after 30th June. £ s. d. The Reserve Account balance brought forward was .. 56,948 10 4 The addition for the year .. .. .. 28,307 9 7 84,255 19 11 Plus surplus as above .. .. .. 12,387 12 1 £96,643 12 0 The Control's buying schedule was increased on the Ist April, 1946, by Id. per pound to reflect increased pelt values, due to increases in the American ceiling prices. The total skins purchased by the Control during the year were 2,280,419. Of these, 1,074,686 went into export stock and 1,205,733 went into fellmongering stock. Allowing for the variation in opening and closing stocks, details of the skins sold for export were: — Skins. lb. Local sales .. .. ..160,845 707,262 U.S.A. sales .. .. ..421,865 3,341,959 U.K. sales.. .. .. .. 146,950 1,440,690 Canada sales .. .. ..105,827 701,566 France sales .. .. .. 116,581 599,318 952,068 6,790,795 Skins fellmongered totalled 1,284,343. The slipe wool sold by the Control totalled 5,301,860 lb., and the pickled pelts 112,004 dozen. Administration expenses show an increase of £Bll 6s. 5d., main items of increase being : salaries, £5l 18s. Id. ; telephones, £162 lis. 3d. ; stationery, £lOB 16s. lOd. ; interest, £285 15s. 3d. ; general expenses, £146 6s. 3d. ; rent, £BO 14s. Id. HIDES The report for the 1939-40 season gave details of the action taken by the Government in regard to control of export of hides, stabilization of prices of hides for local requirements, and equalization of value of hides for local use and for export by a levy on exports. This levy serves to balance the difference between local " standard domestic values " fixed at Ist September, 1939, prices, plus 25 per cent., and export values. This procedure is embodied in the Hides Emergency Regulations 1940, and the administration of the regulations is entrusted to a Hides Committee, which operates under authority conferred on it by the Minister of Marketing. SALE OF HIDES TO AUSTRALIA The arrangement between the New Zealand and Australian Governments for the sale of hides to the Australian Hide Board as referred to in last annual report was discontinued in September, 1945.

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