HIGH PROFITS?

Auckland Star, Volume LXXII, Issue 193, 16 August 1941, Page 6

HIGH PROFITS?

MEAT EXPORT WORKS RESULTS FOR A YEAR (By Telegraph.- Parllßmcr.tr.ry Reporter.)* WELLINGTON, this day. When the House of Representatives w.--< consul: rins tiie Meat Marketing Account estimates yesterday afternoon, 7vlr. Hamilton (National. Wallace! referred to the results of an audit of the accounts of export freezing works, which disclosed that an abnormal profit had been made in one year. He urged that steps should he taken to safeguard producers in the future.

The acting-Prime Minister. Mr. Nash, said that he, too. thoupht the charges made were to."> high in view of the profits disdo'-ed a; a result of the audit. Taking that into account he was of the opinion that there should be a reduction in charges for succeeding periods. As for the past season, it looked next to impossible for any reimbursement of charges to be made, as the profits in most cases had been distributed to shareholders.

The matter was discussed with the Meat Board and it was decided that they would take charge of negotiations with the freezing companies, who decided that they could not make any alteration. The Government also took the matter in hand, but he did consider there was a case for re-examination of freezing company charges to determine whether the work they did was in accord with the price they charged.

A Monopoly Mr. Hamilton: They have a monopoly and there is no competition. Mr. Nash went on to explain that abnormal profits were made in a year when the charges were the same as in a year of normal profits.

Mr. Hamilton: By-products affect the results.

The acting-Prime Minister agreed that not only ihe income from freezing charges but the sale of by-pro-ducts had to be taken into account. If. in a year subsequent to one in which they made abnormal profits, the prices of their by-products crashed, one might have to pay them more. The Government was trying to arrange with the Meat Board and the companies for another examination. He suggested that another side of the question was that the meat producers had also had a good run, and, so far as the companies were concerned, not only -was abnormal income tax levied, but there was excess profits tax to consider.

"I don't mind that," concluded the Minister.

Mr. Holland: And leave them without the incentive to make the money to pay the tax?

Help the War

Mr. Nash: The big incentive is to do work which will help the war. Keep the profit normal and get a little bit more for running the country.

The Minister of Agriculture. Mr. Barclay, referred to the difficulty of making retrospective payments to producers whose meat was sold and possibly passed through two or three hands. It was impossible at the beginning of the season to know what by-products would fetch, although they loomed so large in freezing companies' income.

Mr. Forbes (National. Hurunni): I see the difficulty, because only at the end of the season do they know their profits from by-products.

Mr. Barclav: Thev brought nearlv £1.000,000 last year.