SALE OF MEAT WORKS.

Timaru Herald, Volume CXXIII, 24 March 1926, Page 13

SALE OF MEAT WORKS.

AN OFFICIAL STATEMENT. BY CHAIRMAN OF MEAT BOARD. In a statement concerning the refusal of the Government to sanction the transfer of.the license of'the Wellington Meat Export Co. to Borthwicks, the chairman of the Meat Board says; ' , • . “It was recognised by tho Board booh after its inception that we . had more ' freezing works operating, in . this country .than we required to hamlie the quantity of stock available for export, and it was only a question of time when some of them would cease to operate.

“The. Board fully realised the ‘clanger these derelict or invalid works would bo to our trade —that overseas interests might endeavour to acquire them at, h low capital cost, and that with all the other advantages which these overseas interests possess, they would sooii cause troidTe to the remaining locallyowned works, and might, eventually endeavour to acquire them also, or push them out of business. If this position wero allowed to eventuate, these overseas interests wou'd then be in a position oil dominating the whple of our frozen meat trade. “To safeguard the interests of the producers of this Dominion, the Board came to a decis on which was Contained in a. Press communique, dated May 1, 1922. making it quite clear that it will not agree to overseas concerns purchasing, or erecting, or acquiring ,any further interests in our New Zealand freezing works without the Board’s approval. This communique was .given fall publicity by the Press throughout ■the Dominion at, tho time, and no exception was taken to the Board’s attitude in the matter by any New. Zea-land-owned freezing companies. It was generally recognised as a very wise policy to keep our frozen meat works from fading into outside hands;..and to maintain an open-door policy and freedom of trading.

“Tho Board’s policy in this matter does not handicap overseas concerns in any way. They at present have, freedom of trading, and in every district there are works through which they may put their stock; and where they aro charged reasonable freezing rates. CONTRAST WITH SOUTH AMERICA.

“Tins is Quito a contrast to South America: To ascertain the true position tho Board sent its general manager (Air Fraser) there on a special mission in 1923. At that particular time there wa s considerable dissatisfaction amongst the farmers there as to the prices tney wero receiving for fat stock from tho overseas packers operating,, and as a. result of this agitation, endeavours were, made to bring pressure on the Government to establish State-owned freezing works as 'a remedy to relievo the position. As Mr Fraser saw the position, ail the freezing •workkVin the Argentine and Uruguay | were'owned, Or control ed by' overseas interests. If a farmer was dissatisfied with the price offered for his stock by the packers', there were no facilii ties fc r h' m to ship on his own acrount and so test the market for him-self—-he had no alternative hut to accept whatever' prices were -offered. “Tho position to-day in .'New Zen land is quite-■ the reversed/ Here,' if o. farmer is dissatisfied with, the price offered, he can always ship; bn his own account, and as long as w,e can maintain this open-fioor*sk)lic,v,„mwei arc going a long way iii the dfre-tion ol making tho farmer oil . this Dominion immune from exploitation. One has only tb compare the prices paid in the Argentine for sheep and lambs during the last lew years, ' and ..the prices paid in the- Dominion, altei making due allowance for the difference in quality; the difference is decidedly in favour of New Zealand. “Ho far, the Board has been asked on two occasions to make a recommendation m respect to applications for transfers of licenses from loeally-own-eel'ivories'to overseas interests, and on the individual merits of each case it has made its recommendations. ‘Take the l’overty Bay Works: In the Poverty Bay district there were three works operating in; a district which could on.y supply sufficient fat stock’ to keep two works going; two of these ’works', wero locally-owned and one ivas oitncd by an overseas interest. The overseas-owned works bad to be re-built, .and instead of re-building the owners made an offer to buy one of the locally-owned walks,, '-which was hopelessly’' insolvent, ■" and dismantle tlroir own works. The Bohrd, in viewing the^ posit.on, came to the conclusion thill it would not mean granting nil additional license to an overseas interest, and that it would be in the interests of produces in the Poverty Bay district, if one of the works .were closed, lor, apart from the additional cost of freezing charges, if three works endeavoured to carry on, •it would .only mean one of tho locallyowned works would eventually have to go under, and probably both. “In the case of the Wellington Moat Export Co., Ltd., the position is totally different': An overseas interest had made an offer to buy the two freezing works owned by this company, at a low capital cost—one of these works king situated in a very iavom-ablp position. If the transfer were allowed, it would mean tile securing of an extra liecn.-e in New Zealand hv an overseas linn already established here. ‘‘The Chairman of the Wellington Meat Export Co., Ltd., at the annual meeting of the company, held on the December 11, mentioned when speaking about the factors which led up to the position' into which its Company had fallen —

... “ ‘Then wo have to work by the sidt, of the British-owned companies, with works established here. They aro operating both at their own works ami at New Zealand-owned works. They have many advantages over us, such n.s their own refrigerated stores at the receiving end and other terminal facilities —enormous capital resources, and their own means ol distribution, even to their own retail shops. ’ “He also incidentally said that a very large amount of.money is invested in New Zealand-owned Freezing G’ompan“Homc have already lost all their capital and much beside, and other.-, uro following in their wake,.and sal llo effort, should be made to save them.” “Tho chairman o'.' the Wellington Meat Export Co., Lid., hejrp states that some effort should be '-made to save oilier New Zealand-owned freezing companies, lmt his company’s decision to sod to an overseas interest would make Tec position worse for the remainin'? ''New Zcalancl-oaned companies;.. J.f his’ particular companJ/ Tound it impossible to work aide by “side with overseas companies, then selling out to an overseas company would certainly !jccoutuato liio difficu 1, positon of the remaining locally-owned companies, and il followed up by further sales, would put them right out of business altogether, and would eventually result in toe whole of our works being passed jr.to ' the hands of overseas interests wlii.li, won i) then be in a position'.to dictate to' the producers of this Dominion. ' ~ “It Is interesting to note that a meeting of about, forty shareholders ol this company, li6id at Marton on Lo-

cumber 10 last, passed a resolution viewing with alarm any suggestion ol the sale of the company’s property to any company whose share „ capital in provided outside of the Dominion. “1 -would empliasifo that the wliolo iftff'y of the New Zealand Meat Producers’ Board is to watch over and safeguard thq interests of the meat producers of New Zealand, and its policy has received practically the unanimous support of tho slieeplarmers of this Dominion. Tho Government has placed enormous powers in the hands of the Board to enable it to carry out its duty and it will not hesitate to exercise these, powers to the i'ull extent should any position .arise t° warrant it. “In conclusion, it would not be out ol place to,point out that anything that affects the producer also affects every man, woman, and child of this Dominion because the whole country is supported by' its production of meat, wool, and dairy produce.