WELLINGTON NEWS

Hokitika Guardian, 20 March 1926, Page 1

WELLINGTON NEWS

THAT MEAT LICENSE,

(Special to “ Guardian.”)

WELLINGTON. Alardh 17

The Minister of Agriculture (Hon 0. Ilawken). at a garden party at Eltliam hist week referred to his refusal to grant a transfer of the slaughtering license held by the \\el!i ligton Aleut Export Company to Borthwick and Sons Lid., and his remarks on the occasion have come in for sevcie criticism. It is pointed out that his letter io the Company refusing to agree to the transfer of the license, the Minister gave as his reason, “grounds of public policy,” at Eltliam the Minister stated that there were four or five other companies in a precarious condition. and if a strong company from outside were to obtain that license it would lie able practically to destroy four or five other works. These works are evidently located between "Wellington and Tlnwpra, and the weakness of this argument must be apparent to anyone conversant with the subject. .Messrs Borthwick and Sons have freezing works at AYaitara for which they hold a slaughtering license. That license enables them to buy fat stock in any part of New Zealand, so long as the slaughtering and freezing is done at the AVaitaro- works. Bortliwick’s fat stock buyers have been known to operate as far down as Levin, so that the four or five companies referred to by the Alinister have already felt the competition of this firm. The position of Borthwicks in this matter appears not to he understood. Borthwicks have large connections in the United Tvingdom, and they must always have a full supply of meat. AVhen they are urgently in need of supplies they do not grumble about lllte price, but pay. They have a regular outlet for the meat they handle, consequently they are always in the market for supplies. The charge against them appears that they give high prices and so acquire the hulk of wliat is offering, leaving little or nothing for the Farmers’ Co-operative AI cat Works. It is pointed out by one critic that the shareholders of the four or five companies referred to by the Alinister have already lost all tflicir capital, but behind them are the men who have signed the “joint-and several,” otherwise the guarantors that ore the subject of the Minister's solicitude.

ft is stated that the guarantors of one of these “ lame duck ” duck concerns are liable for £BO.OOO. Tf the concern goes into liquidation, then the guarantors must, face the music. But whether Borthwicks are granted the license or not these guarantors are in jeopardy, and the Alinister evidently recognises this, for hi* suggests that the meat industry should conic to the assistance of the freezing industry. Avrr.vT ts the difference? It may he asked what is the difference between the Aleut Industry and the Freezing Industry? ft may he that tl,e Afinisier desires to differentiate between the exporters ami the companies that freeze on owners’ account Borthwicks, A'osteys, Sims. Cooper and Co., the Gear Cov.. the Wellington .Meat Export Coy., when it was operating. arc all exporters, and with ono or two exceptions they arc also owners of freezing works. -Are these men and concerns to come to the relief of the guarantors of the farmers’ freezing companic.- " The Ministerial utterance suggests that Dio exporters have, the capital for such, a venture. Perhaps they have, hub they nro not likelv Ask more capital in the industry after tlicir experiences of the past three or

four years, and particularly last year. The exporters lost very heavily through paying high prices for stock, and the producers got the benefit of this. The idea in the mind of thp Alinister appears to bo that the exporters should buy lip these four or five works, and so give relief to the guarantors, and close down such works as are not required, as there is admittedly too much freezing machinetv in the North Island. The exporters arc not likely to rise to that bait. ‘There is still the Aleat Producers’ Control Board which could he authorised to buy these works, borrowing the amount required. It cannot be overlooked that the Meat Control Board is to all intents and purposes ,‘t Government Department and for this Board to step in and buy up tile works would be the first step towards nationalising the industry, and would no doubt receive the hearty support of the Labour Party. The Government made a big mistake when it interfered with the industry, and now it is obliged (o perpetrate further blunders to uphold a vicious policy. The meat industry, like the wool industry, and every other industry, would have worked out its own salvation had it been loft alone. The wool industry has achieved that success, and the wool market is the most satisfactory one we have because confidence has been established and business is passing freely-