FREEZING WORKS DEAL

Southland Times, Issue 24875, 15 October 1942, Page 4

FREEZING WORKS DEAL

FARMERS OBJECT TO TRANSFER Opposition to any transfer of the licence of the Ocean Beach freezing works to the Co-operative Wholesale Society of Great Britain was expressed yesterday at a meeting of Southland farmers convened by the Southland Provincial Executive of the Farmers’ Union and the Southland members of the Electoral Committee of the Meat Board. The opinion was expressed that producers should have been fully informed of any negotiations for the sale or transfer of the works. It was decided to send telegrams of protest against the proposed transfer to the Government and the Meat Board. In the absence of the president of the Southland Executive of the Farmers’ Union (Mr G. Stevenson), Mr G. A. Hamilton, of Lumsden, a member of the Electoral Committee, was chairman. The negotiations for the sale of the Kaiapoi and Ocean Beach works had been going on for some time, Mr Hamilton said. The intending purchaser was the Cooperative Wholesale Society, which had been operating extensively in the North Island in the past, but not so extensively in the South Island. He did not think the society owned any works in New Zealand. It had been suggested that it owned the Longburn works at Palmerston North, but he did not think it did, although it bought the whole of the output of that works. There were a number of local interests which would have been glad to buy the Ocean Beach and Kaiapoi works, but they had not been given the chance. These companies had given good service in the past. They knew the local conditions and the interests of the producers, and he did not see why they should not be allowed to acquire any works which were for sale. FEW INDEPENDENT WORKS The policy of tlje farmers was to have their meat handled locally, the chairman continued. There was a danger of overseas interests getting in and taking charge of the meat business without any reference to the producers. Such an eventuality had been feared and discussed for many years. So far, the producers had been able to deal through independent companies, and if they were not satisfied with the price offered they could export meat on their own account. There were not many Independent works left and the position had deteriorated rapidly. The Southland Executive of the Farmers’ Union had passed a■. resolution that no transfer be allowed without the approval of the Meat Board and that the Southland delegates to the Electoral Committee be given an opportunity to discuss! the matter with the board. The Electoral Committee had passed a similar resolution. “Within the last few hours I have had word that this transfer has already gone through,” Mr Hamilton said. "If that is so the Government has gone over the heads of the Meat Board.” DOMINION OWNERSHIP Mr W. J. A. McGregor said the Co-opera-tive Wholesale Society had been of great benefit to the people of Britain in supplying foodstuffs at the cheapest price. The producers were glad to have the society’s competition as a purchaser, but at the same time they felt that the New Zealand meat works should be owned within the country. After the war, when there would be more open marketing, New Zealand should be in a position to offer its own goods on the world’s market. He suggested that the meeting lodge an emphatic protest against the Meat Board or the Government granting any transfer to a company not owned within New Zealand. There were only two New Zealand companies left in the trade in the North Island, and it was not desirable that the same position should arise in the South Island. Mr H. P. Mclntyre (Maitland), a member of the Electoral Committee of the Meat Board, said he did not think the works had yet been sold because he had received a telegram from the general’ manager of the Meat Board to the effect that the position would be discussed at a meeting of the board today. The Government representative on the board had said that neither the board nor the Government desired to grant a licence to. a company unsatisfactory to the producer. If the transfer had been granted the Government must have gone over the Meat Board. FREE COMPETITION “We don’t want to stop the people of Britain getting their meat as cheaply as possible, but we want to make sure that we get every penny that is in the business,” said Mr J. Cowie (Balfour), also a member of the Electoral Committee. If the Co-operative Wholesale Society was going to run parallel with the other Southland company, which paid 40 per cent, on original capital, the producers would not want that. The grower needed free competition' to ensure that he received a fair return for his produce. The Co-operative Wholesale Society would, no doubt, spend no more money in New Zealand than the actual wages and such taxation as the Government could extract from it. The following telegram was dispatched later: “This representative meeting of farmers of the Farmers’ Union and the Electoral Committee delegates stresses the urgent ' necessity to establish the principle that no works or part interest in any works be sold to overseas or any interests without giving I effect to the resolutions passed by the Electoral Committee, and further, that when any licence or part interest in any licence is to be granted or transferred, Dominion interests be given the opportunity to negotiate for such licence or part interest, and also that they be given preference over all foreign or overseas interests. We forsesee that when this world war ends trade will be in more open terms and we must be prepared to own, handle and market our own produce."