“Nothing Sinister” In Finance Bill Proposal

Press, Volume XCIX, Issue 29339, 19 October 1960, Page 6

“Nothing Sinister” In Finance Bill Proposal

(From Our Own Reporter)

WELLINGTON, October 18. There is “nothing sinister” in the proposal contained in the finance bill now before the House of Representatives which authorises the Minister of Finance to acquire shares in Producers Meats (North Island), Ltd., and Primary Producers’ Co-operative Society, Ltd. This was explained tonight by a high Government authority who said that it did not represent any departure from the department’s policy of normal trading. It is understood that letters have been sent by the Minister of Lands (Mr Skinner) to North and South Island freezing companies explaining the reason for this procedure. It stems from the fact that only if it becomes a shareholder can the Government participate in full payments on stock passed through these co-operative companies. Where it has been good business to do so, the Lands Department has marketed a small proportion of its stock for killing through the two co-operative organisations. Share Reserve As is the case with all its suppliers, Producer Meats (North Island), Ltd., has retained a proportion of the final payment for stock in a share reserve account, from which payment is made according to shareholding in the company. The rules of the company re-

quire suppliers to subscribe for shares, and stipulate a maximum shareholding of 300 £1 shares for each supplier. The acquisition of 300 shares would thus enable the Lands Department to receive payment of retentions in full by cash, and to participate fully in rebates over and above schedule prices for stock supplied at such time as rebates are declared. The intention is for the department to be permitted to take advantage of its credit in the share reserve account and acquire this small parcel of shares. As no statutory provision exists to enable the Crown to acquire the shares, the legislation is intended merely to remedy this.