DAIRY INDUSTRY ACCOUNTS

Press, Volume LXXXVII, Issue 26513, 30 August 1951, Page 3

DAIRY INDUSTRY ACCOUNTS

LOANS FOR CAPITAL SPENDING

SUGGESTION BY TARANAKI ' COMPANY (New Zealand Press Association) NEW PLYMOUTH, Aug. 29. “The cheese industry must mechanise or perish. Then why not use the industry’s reserve funds to finance projects? Why should we raise money from other sources and lend our own for other capital expenditure?” These questions were asked by the directors of the T. L. Joll Co-operative Dairy Company, Ltd., at the annual meeting at Kapuni to-day in a statement read by the acting-chairman (Mr W. E. Scott). The directors said that it should be made possible for any dairy company to borrow at low rates of interest its share of the Dairy Industry Stabilisation Account for such capital expenditure as building staff houses and new factories, renovating plant and buildings, and above all for mechanising the industry. “Our executive officers estimate an expenditure of £50.000 is required to mechanise completely our eight cheese factories,” said Mr Scott. “Why cannot the commission, to take our case as an example, lend the Joll Company £50,000 and take an order for repayment of interest and principal from our guaranteed price over a period of years? The saving in legal expenses alone and difficulties avoided in giving security for the loan would be of great benefit to the industry. Finally, in what better way could the funds be used for the benefit of the industry?”