Minister Thinks Two Works Not Needed

Press, Volume CIV, Issue 30811, 24 July 1965, Page 16

Minister Thinks Two Works Not Needed

(New Zealand Press Association) DUNEDIN, July 23. The Minister of Agriculture (Mr Taiboys) said in Dunedin tonight that he did not know of anyone who thought South Canterbury could support two fertiliser works. He was commenting on the proposed use of Meat Industry Reserve Account finance to assist in the cost of establishment of a co-operative fertiliser works at Timaru.

The cost of building a works is estimated at about £1.6 million, and the Government has said that if farmers gave firm undertakings to subscribe £400,000 in cash within 12 months of the allotment of shares, it would authorise the use of the account to cover the balance of the cost.

“1 don’t know that there

is going to be a second fertiliser works in South Canterbury,” Mr Taiboys said. “It will depend to a large extent on the amount of support the farmers themselves are prepared to give. “The Meat Board will also assess the situation, and it must satisfy itself that a second works is an economic proposition before its resources are used.

“Three recent surveys, two by Federated Farmers and the other by Dominion Fer-

tiliser, Ltd., a company which is already building a fertiliser works near Timaru, have shown that a works costing £1.5 million or more would not be justified. “In 1952 the Meat Board agreed to certain principles, outlined by Federated Farmers, on the disposal of Meat Board funds. One of these stipulated that any advances for special purposes must first go to the meat and wool section of Federated Farmers for investigation and approval.” Mr Taiboys said he did not know what would happen if the meat and wool section did not approve of the use of the account funds for the works. If other areas wanted fertiliser works and aid from the same account, they would have to approach the Meat Board, he said. If farmers had their money in cash instead of Government investments, he said, they would not have to ask anyone, and the money in the

account did belong to the farmers. Asked if he thought farmers in the area could raise the £400,000 in cash in the time stipulated, Mr Taiboys said: “I don’t know." (Mr Kerr’s Comment, Page 3)