Request For Proof

Press, Volume CVI, Issue 31096, 27 June 1966, Page 14

Request For Proof

(From Our Own Reporter) WELLINGTON, June 26. At the request of the Government, the Meat Board has asked the South Island Fertiliser Company to provide evidence that it can operate successfully on normal price margins.

The board has received a letter from the Minister of Agriculture (Mr Taiboys) suggesting that the viability of the project be proved as quickly as possible. This will be necessary before the Government can approve the use of funds from the Meat Industry Reserve Account for the establishment of the works. Two directors of the company had discussions with Meat Board officials. The attitude of the Government and that of the board is based on a resolution of the electoral colleges of the Meat and Wool Boards and Federated Farmers adopted last August. This stated: "That this electoral college approve the use of pro-

ducer funds for the establishment of fertiliser works, proved that producers’ support as required is forthcoming, and provided that any such project can operate successfully on a competitive price basis.” The first proviso was met by the guarantee of 80 per

• cent of farmers in the area , to subscribe to the company. Asked if the Minister’s let- • ter requested assurances on ; the viability of the company, ■ the deputy chairman of the ■ board (Mr L. A. P. Sherriff) said: “That is what they are ; asking—and that is what we ■ want to know.”