Criticism Of Action On Fertiliser Works

Press, Volume CVI, Issue 31248, 21 December 1966, Page 3

Criticism Of Action On Fertiliser Works

The Pre si” Special Service

DUNEDIN, December 20.

It appeared strange that the Meat Board should be financing a fertiliser works in South Canterbury when reports indicated that such a venture would be uneconomic, the chairman of Dominion Fertiliser (Sir Carl Smith) told an extraordinary meeting of shareholders in Dunedin today.

The meeting was held to approve proposals to increase nominal capital from £550,000 to £l.l million and to subdivide share units from £1 to 10s.

Reporting on the progress of the company’s new works at Seadown Sir Carl Smith said the project was slightly, ahead of schedule and it might be possible to start manufacturing there earlier than the target date of April 1 next.

“Although it in no way affects our Seadown plans, it has been reported that the Meat Board has agreed to find substantial loan money to help finance the erection of a new co-operative works in Timaru,” he said. “This appears strange tn view of the fact that the Prime Minister, the Minister of Agriculture, three other Cabinet Ministers and reports compiled by investigating committees have all stated that such a proposition is uneconomic.

“Our own investigations still confirm that there is insufficient tonnage within the economic area to be serviced from our Seadown works yet to justify our installing an acid plant, let alone consider the erection of a second complete full-scale works.” He said it was Gilbertlan that the request of a group of Central Otago farmers who wished to use their own money to establish an abattoir works at Omakau had been referred to the Meat Board for investigation. This was a step the Meat Board had not taken when it sent forward to the Cabinet its first recommendation that £1.2 million be provided from

Meat Board funds for the cooperative company in South Canterbury. Questioned by a shareholder, Sir Carl Smith said the estimated total cost of a new co-operative works in South

Canterbury would be about £1.6 million, of which £600,000 would need to be spent in overseas funds. The cost of the Dominion Fertiliser plant at Timaru would be about £400,000. Much of the difference was attributable to the acid being sent from Ravensboume instead of being made in a septate plant in South Canterbury.