MEAT FREEZING

Dominion, Volume 20, Issue 46, 18 November 1926, Page 12

MEAT FREEZING

DIFFICULTIES FACED BY INDUSTRY QUESTION OF RELIEF “TOO MANY WORKS IN DOMINION” Dominion Special. Auckland, November 17. Difficulties faced by the freezing industry were discussed by Mr. D. Jones, M.P., chairman of the Meat Producers’ Board, at a meeting of farmers convened by the Auckland provincial executive of the Farmers’ Union, Mr. Jones was asked by the president of the executive (Mr. C. C. Monro), who presided, if the Meat Producers’ Board had gone into the question of extending financial relief to those freezing companies which were in difficulties. He referred in particular to the refusal of the board to transfer a Wellington company’s export license to an overseas company. In reply Mr. Jones said that the refusal to transfer the license had not affected the security of a single Auckland company dealing in meat. Regarding the question of relief, he referred to "proposals put forward in various parts of the Dominion in favour of amalgamation of the industry. Such proposals, he said, involving, as they did, the purchase of all property in the industry, were not in the interests of the country as- a. whole, and would impose a burden on producers it would be manifestly unfair to ask them to carry. The interest charges alone on any one of tile proposals would exceed the total costs of .putting the Dominion’s meat free on board, killing expenses included- • , Amalgamation, Mr. Jones continued, would turn all the freezing works in New Zealand into non-buying organisations. The present system had given excellent competition in the last three vea.rs, and he saw no reason for departing from it. The advantage lay in the fact that, with the single exception of one commission which went to a Smithfield salesman, a freezing company came directly in touch with the retail butcher. It would be a serious mistake for the board to promote an amalgamation movement in view of such facts. Replying to interjections to the effect that privately-owned companies were putting up prices, with the sole object ot crushing the . co-operative companies, Mr. Jones said that the great bulk of the competition which had put' prices up came from operators who did not have a single penny in freezing works. The Producers’ Board was satisfied that the companies were blameless of that charge. What the Auckland province most needed was a reduction in freezing costs. It would be well worth the while of farmers to consider seriously the advisability’ of wiping out a great deal of the capital of the Auckland Farmers* Freezing Company, and working only one factory, instead of the three it now owned. There were too many freezing works in the Dominion, and some must inevitably close. VI he point that needed emphasis was that local affairs should be given separate consideration by the farmers of each district, rather than that the Producers’ Board should ' be called upon to institute" a national scheme that would impose a charge on the whole country. ’ ’ Position of Guarantors. The chairman: Putting the merger aside Mr. Jones,' what is the position of the guarantors of these companies? We know that tlie directors are loaded down with guarantees to financial institutions they cannot carry, and we want to know if any proposal has been prepared to relieve them of this burden. We look upon freezing as a national industry, and it is not fair that the community should let it down. „ Mr.-Jones: Take the case of a factory which* has a debt of £300,000, and is not wanted. Take the case, for in- ■ stance of the dried milk factories in the Waikato. Their erection was undoubtedly a mistake. Do you sug•gest that they should be loaded on the whole Dominion? A voice: The case is quite different. Mr., Jones: No, it’is quite parallel. A voice: The war was on. Mr, Jones: Exactly, and' because the war was--on a whole lot of factories were built where they were not wanted. If you pass the burden on to the nation you might have to help the wool industry. in the same way. A voice: Wbol is being helped by a protective tariff. Mr. Jones: But that tariff has not been changed. If I go out and buy a farm where it is not wanted I have to suffer. If a few men put up freezing works in the same way, they have to'suffer. If . you are going to give assistance to all such people you will have a national disaster. A voice: Did not Mr. Massey ad-

vise the meat producers to erect freezing' works during the war? Mr. Jones: If his advice had been followed you would also have had increased storage space. The advice was good, but money was cheap—everyone was ’throwing it around—anl now we have to suffer. I know that many of those factories were put up at the instance of property owners and land speculators to lift the value of land in their districts. Why Not Local Mergers? “The Producers’ Board has to take a New Zealand point of view,” Mr. Jones added, “and it says that it is not in the interests of the country to put these companies all in one pool. If local mergers could be considered there might be a way out.” The chairman: We do not think it would be possible here. Mr. Jones: “You have three works under one company. If the Auckland Farmers’ Freezing Company made a mistake in building three works instead of one, then the question • is whether vou should not wipe off part of the capital and concentrate on works at Southdown.” There were, he said, 2,250,000 sheep in the Auckland province and it would make all the difference in the world if another one shilling per head could be added to the price annually by a reduction in killing costs. “My advice to Auckland farmers is to investigate their problem locally, and I am sure they will find the right solution,” Mr. Jones concluded.

“Policy Completely Justified.”

Referring to numerous resolutions carried at meetings throughout tne Dominion calling on the Meat Boara to take control of the whole output oi New Zealand meat, Mr. Jones maintained that the policy of the board had been completely justified by the results achieved in the three years the board had been in operation. All such "demands had to be submitted to the test, what course will give the producers the highest net price for their produce? It was’invariably in answer to that question that the policy of the board was framed.