MEAT EXPORT.

Auckland Star, Volume LIX, Issue 284, 30 November 1928, Page 9

MEAT EXPORT.

MINISTER CHANGES FRONT. KTMYTFTO UOENSE GRANTED. A REVERSAL OF POLICY. (By Telegraph.—Special to "Star.") WELLINGTON, this day. Several years ago when the Wellington Meat Export Company was in financial difficulties shareholders were willing to accept an offer from Borthwick Bros, to purchase the concern at a price, which it was estimated, would return 8/ in the £on capital. The transaction could not be concluded, owing to the refusal of the Hon. O. J. Hawk en, Minister of Agriculture, on the advice of the Meat Control Board, to grant Borthwick's a meat export killing license for the Wellington Company's Ngahauranga works, which they proposed to acquire and operate.

At to-day's annual meeting of the Wellington Meat Export Company, the chairman, Mr. 0. S. Watkins, commented on the fact that Mr. Hawken, prior to his resignation as a Minister, had granted authority for transfer of the meat export slaughterhouse license, held by the Waingawa Meat Company, to Borthwick and Sons. "The announcement that the Government had granted a license to an overseas firm to operate the Waingawa Works," said Mr. Watkins, "comes as a surprise after the same Government had refused this company the right to sell to the same firm two or three years ago. It is difficult to follow such vacillations in policy, if there is any policy, and the Government and the Meat Board have much to explain. This company and its shareholders were much affected financially by the first decision of the Government. They were denied the right to sell their assets and convert their interests into cash then, on the assumption that the policy of the Government and the Meat Board was a settled one. The company adjusted its capital at the expense of ordinary shareholders, and made preparations to freeze for a larger output. Now, the Government reverses its policy in the Booth business. It is difficult to understand such vacillations. I wish to make it clear that I think the power of the Government to refuse a license to an overseas firm should only be exercised under extreme circumstances such as have not yet arisen in New Zealand. The Government was wrong in the first instance, but I admit public opinion seemed to be with the Government. Nothing, however, can justify this volte face on the part of a moribund Government. They ought not to be able to make chalk of one and cheese of another, and this company has a claim in equity for compensation against the Government for its action in the first instance."