GOVERNMENT TO RESCUE

Evening Star, Issue 22145, 27 September 1935, Page 3

GOVERNMENT TO RESCUE

HONEY PRODUCERS’ LONDON DEBT £10,009 ADVANCED [From Our Fakliamentarv Reporter.] WELLINGTON, September 26. “ The affairs of the Honey Producers Association Ltd., which went into liquidation in 1932, have been engaging the attention of the Government for a considerable time,” said the Minister of Agriculture, Mr Macmillan, in a statement to-day. The liquidation of the company, he said, was brought about through advances made against consignments' of honey, and advertising costs in'the United Kingdom incurred by the company’s London agents on behalf of the company, largely exceeding the amounts realised on the sales. The principal creditor was Messrs C. and E. Morton Ltd. Owing to the depression and other factors the progress of the liquidation was retarded, and at July 31 last the net deficiency was £17,527, on which interest was accruing at the rate of 5 per cent, per annum. Negotiations took place, and these left £7 400 to ho found in order to make up’ the £IO,OOO that Morton Ltd. were prepared to accept. The Government, while making it perfectly clear that it was in no way under any obligation to assist in the settlement of the affairs of the 'Honey Producers’ Association Ltd., recognised that it was desirable in the national interest, and in the interests of tbo honey industry, to effect a settlement of its overseas indebtedness, and enable the New Zealand Honey Export Control Board to obtain possession of the London depot and institute a. more satisfactory marketing system in the United Kingdom. It desired, too, to safeguard the contributors, who were in most cases honey producers in a small way of business, from the hardship that would result from the hastening of the liquidation proceedings. ’l'llo Government bad decided to act on the recommendation of the Executive Commission of _ Agricul-_ ture, and advance to the liquidator £IO,OOO, which would lie made available in London for settlement of Morton Ltd.’s claim. The advance would bo repaid by the board and the liquidator on cei'taiu terms. “ It is desirable that I should take the opportunity of refuting statements that have gained currency among the honey producers to tho effect that the Government or the Honey Export Control Board intends to levy a tax, by way of contribution to tho settlement, on ail beekeepers, whether producing for the local or the export market. Tho statements have no foundation.”