FREEZING WORKS’ ACCOUNTS

Press, Volume CIII, Issue 30543, 11 September 1964, Page 12

FREEZING WORKS’ ACCOUNTS

Labour Wants Details; Minister Refuses (From Our Parliamentary Reporter) WELLINGTON, September 10. The Minister of Agriculture (Mr Taiboys) tonight refused Opposition demands to make public details of an investigation into freezing company accounts. Mr N. E. Kirk (Opp., Lyttelton) had described the Minister’s reluctance to reveal the results of the study as “inexplicable.” There was increasing doubt among farmers that freezing companies’ charges were fair and reasonable. But Mr Taiboys countered: “The details will not be made available because Mr Skinner, Minister of Agriculture in the previous Labour Government, gave an assurance that they would not be made public.”

This, continued Mr Taiboys, was fair warning to the people of New Zealand that the Labour Party would not honour its own agreements. The Alliance company in Southland had been established by the Meat Board on behalf of producers, partiy to provide a check on charges. Other works, such as the Auckland Farmers’ Freezing Company and the Whakatu works, at Hastings, were farmer-owned and controlled. “There is opportunity for the financial details to be made available,” said Mr Talboys. “I assume that a socialist government would make newspapers reveal their accounts, since they are a public service—and doctors. . . .” Opposition voices: They are

“If this is a socialist attitude, then I believe socialists will be out-voted at every election," said Mr Taiboys. He said the actual detailed investigation of freezing company accounts had been completed. Each of the freezing w’orks had been checked in detail. Results were being collated. Undertaking Given “I will not make these accounts available in detail to the Meat Board. That undertaking was given by Mr Skinner and I intend to honour it,” he said. “The Meat Board will be given a general picture of these accounts. It will be a sorry day when a Labour government establishes as a principle that private accounts should be made available to the public. I am interested but not surprised, that Labour has chosen to stir this particular pot tonight.” Mr Kirk said the returns earned by a substantial section of the community were of natural interest and concern. Some freezing works were public companies, some were private companies and some were overseas-owned and con trolled. Mr Kirk said. Profit Increases While percentages might be deceptive, the New Zealand companies had recently made a 1313 per cent increase in net tax-paid profits. In recent years, £16.9 million had been spent on capital expenditure in freezing works without an apparent further drawing on share capital. If charges were reasonable, and profits remained undisclosed, this, in itself, was good reason for the Meat-Board to ask that accounts be hared publicly. Dr. A. M. Finlay (Opp., Waitakere) said Mr Taiboys was well known as a master of irrelevance.

Freezing companies today were so basic to the economy of the country that their accounts should be made public knowledge. He was not present in the House, said Dr. Finlay, when Mr Skinner had given an undertaking that the accounts of

the companies would not be published. Mr W. A. Sheat (Govt., Egmont): But you were president of the party. Dr. Finlay said that because the Meat Board did not have details of the accounts, it went into negotiations with one hand tied behind its back. “When we recall the direct link between shipping companies and freezing companies, we see it is of great importance that the board should have these figures.” said Dr. Finlay. “I believe the information should be made available to the board, if not to the public. To deny it this information is to send it into battle half-armed.” Freight Formula Mr J. B. Gordon (Govt., Clutha) said Dr. Finlay had displayed blissful ignorance of a complex situation. The freight rates were arrived at on a formula agreed on between the parties, with a London firm of accountants as referee. The first amendment that the accounts of freezing companies were not to be made public was communicated by Mr Skinner, to the Whakatu works at Hastings. A farmer-owned works which each year gave its clients a rebate based on the killing rate. That agreement of Mr Skinner’s had become the standard for the National Government.

Would the Opposition require that the accounts of every solicitor, doctor, hotel, transport firm and so on be made public? Where would it end? The first works to set the killing rate each season was the farmers’ one at Whakatu. “I don’t know whether the killing charge is too high or too low,” said the Prime Minister (Mr Holyoake). “No-one in this House knows whether it is too high or too low. But an investigation had been conducted in 32 freezing works.” This took many months and was done on the basis laid down by Mr Skinner. What was a confidential inquiry would remain confidential, but if prices were shown to be too high they would be fixed. The results of the inquiry would be given to the Meat Board. Pattern For Charges Farmers’ co-operative freezing companies did not have to make profits and no other company dared charge more than Whakatu, said Mr Holyoake. Opposition voices: Why the inquiry then? Mr Holyoake: Just to make sure they are on the right lines. Is the Opposition criticising Mr Skinner? Meat Board members were on the boards of directors of the Alliance Freezing Company in Southland and Auckland Farmers Co-operative. They were in touch with the situation.