FREEZING INDUSTRY

Taranaki Daily News, 25 November 1926, Page 13

FREEZING INDUSTRY

IS MERCER PRACTICABLE? THE QUESTION OF FINANCE. RECOUPING THE GUARANTORS. (From Our Own Correspondent.) Wellington, Nov. 22. The freezing works problem has still to be solved, and the position is rendered more difficult by the attitude taken up by the slaughtermen. The question of the merger or amalgamation of the freezing works was discussed by the 'farmers with tho chairman (Mr. D. Jones) of the Meat Producers’ Board during the Royal Show at Auckland. Mr. Jones reiterated the opinion of most of the members of the board that national amalgamation was impracticable, and that the board favoured district mergers. The attitude taken up by the Meat Board is irritating to the farmers interested, for they are naturally expecting the board to express its opinions in elaborated and well considered plans. National amalgamation is undoubtedly impracticable, and if it were possible to bring about a national merger, and the works were to be used as freezing works only, that would not save the industry from passing into the hands of the so-called combine. In any case a national merger of freezing works would involve compulsion, and the country would not stand that. If district mergers are possible, as the Meat Board thinks, surely it is up to the board .to devise schemes fer the districts where mergers are deemed desirable. Merely saying that it favours district mergers does not advance matters one bit. What the farmers would like to have before them is some scheme formulated by the board which could be considered on its merits. The board is apparently averse from taking such a forward step, for fear of committing itself or the Government, for, after all, the board cannot divest itself of its political character. It would be easy enough to come to some equitable arrangement as to the merger of interests of freezing companies, but the question of finance will be the stumbling block. Every concern entering the merger will require to be compensated, whether it is a sound concern or otherwise. Assuming that all such difficulties are overcome, then the question arises: Where is the money to come from? The average investor— in fact,' no investor — would venture his money in freezing works because by the refusal by the Meat Board to allow the Wellington Meat Export Company to dispose of its assets to a buyer. The assets of meat works are not now viewy! with any favour. The farmers themselves must find the money, and whether they will do so is quite another - There is a strong feeling amongst a certain section of farmers that some effort should be made to lighten the burdens of the guarantors, and to emphasise this it was stated by one of the speakers at the meeting in Auckland that the freezing industry was a national industry, and it was the duty of the community not to let down the guarantors. This looks very much like a raid on the Colivlidated Fund. If so, the country will not stand it. The guarantors accepted their obligations rather too readily, and must now face the consequences. If the guarantors of freezing compamies are to have their losses recouped to them by the State, then why should not dairy farmers, wool-growers and others be recouped their losses ? Again, why should not farmers who have been forced to abandon their f firms be compensated? It is to be hoped that the position of the guarantors will not be pushed forward, for they have no legal or moral claim on the State for compensation. It does not seem probable that any definite or satisfactory course of action will be taken in respect to the freezing industry. Economic forces must, and no doubt will, operate. The plain fact is that, there is a surplus of freezing works in the North Island, and the uneconomic units must pass out. Although the buildings, plant and machinery of such concerns may have had value. They have, however, very little value now, as going concerns. The process of elimination began some time ago and will continue until equilbrium is secured.