WELLINGTON NEWS

Hokitika Guardian, 1 September 1926, Page 3

WELLINGTON NEWS

HIE FREEZING INDUSTRY. (Special to “ Guardian.”) WELLINGTON, Aug. 30. I At the Mutual meeting of the New I Zealand Meat Producers’ Board last . week, a good deal was said about the . parlous condition of the freezing industry, hut* no one seemed capable of suggesting any scheme that would give the industry any chance of revival. r fhe -Meat Board by its negative policy, ! 4as depreciated the assets of all freezing companies, anil has no proposal ol any value to make. The members of the Board ire sitting on a rail, but are making certain of their salaries. Mr J. S. .lessen, vice-chairman of the Board, said that no bigger problem over faced the sheepfanners of this country. They should scratch out the past, and face the position as it was to-day. The rebates being paid to-day made it impossible for freezing works to exist by freezing alone. Immediately the right to sell freezing works was taken away a position was created for which remedy would have to be found, lie reiterated that the present position, with the right to sell taken away, was an impossible one. It is all very well for .Air Jcssen to assert that the Aleat Board must face the position but that is exactly wlmt the Aleat Board cannot do because it is incapable

of doing so. The Board is endeavouring to solve a commercial and economic problem with political machinery and finds itself in a. quandary. Tho meeting seemed to think that something could lie done by amalgamating works, lint then collies the question, whether there should he amalgamation of all the works in the Dominion, or only t'*'c works in each district, and if any amalgamation is practicable, is it to he voluntary or compulsory1 J and where is the money to come from:' These are all important questions, but the meeting was unable to come to any decision, and it was a barren aifair. With regard to the Board’s refusal to allow the sale of the Wellington Alee. Company to Burthwicks, the chairman (Air 1). Jones) said that the Board had been asked to hold the matter up as there was a proposal for amalgamation between the AVaingawa and Wellington works. •'The Wellington Company could have sold its works to a local merger for .9200,000. and this was the amount which had been offered by Bortliwicks.” This latter statement

is inaccurate, ii gives a false impression. and perhaps that may have been what was intended. The AYellingtou Aleat Company could not have sold its works to a local merger for 9200,000. The real facts In connection with the merger are these. A director of the AVaingawa concern approached the Wellington Aleut Company and asked for a three months’ option, which, if oxereisid would result in a deal oT 9200.000. The three months were required For inspecting and valuing the works. An option is not a sale. Borthwiek made a cash offer of 9200.000. hut the AA’aingawa directors want three months to see if they could raise the necessary capital. If they failed in that there could be no sale or purchase. Inn the Aleat Board could say that it had done all in its power to relieve the company. The joke of the whole tiling is that two of the directors ol the AA’aingawa works, Messrs W. D. Hunt and AY. Perry, are also members of the Aleat Board and helped to prevent the sale of the works to Bortliwicks. It is a peculiar position. The Chairman of the Board might at least endeavour to lie accurate when making statements for nuhliesvtion. But what is going to

happen to the freezing indu-fryl-' Shouting amalgamation and merger does not cut much ice. nor will inquiry commissions and mere suggestions do any good. The market prospects before the industry are very discouraging and the industry offers no attraction to investors, who cannot he blamed since the right to sell has been taken awav. The farmers’ freezing eo in-

panics cannot carry on in the coming season and for many reasons. Some of them are without capital and will have very great difficulty in liaising tho wind ; those that can carry on must speculate to some extent or give rebates, and cither way they are not likely to cover overhead expenses. Amalgamation on an elaborate scale will lie impossible, for no New Zealand capital will be available. One would have to examine the position witli a very powerful niiseroseone to see what good the Aleat Control Board has done the freezing industry.