Meat Works Problems In Chathams

Press, Volume CIX, Issue 32114, 9 October 1969, Page 5

Meat Works Problems In Chathams

The Chatham Islands Meat Company, Ltd, now in receivership, lost $26,000 in the financial year ended October 31, 1968, and $5lOO the previous year.

The State Advances Corporation advanced the company 8156,000. Shareholders’ funds amounted to $43,550, but losses amounting to $34,000 at the end of last financial year had reduced the shareholders’ capital to $9550. The company had a bank overdraft of about $24,000 at that time. The fixed assets of the company at October 31—land, improvements, abattoir and equipment amounted to $200,000, but improvements were made and the plant was expanded earlier this year, before the company was put into receivership. The company owed the Holm Shipping Company $9OOO in freight for transporting meat to New Zealand. The shipping company obtained a judgment summons for that amount, then seized under a distress warrant $24,000 of the meat company’s meat in a cool store in Christchurch. _ , However, after a further hearing, the meat has been “frozen” as an asset of the

meat company in receivership. Mr H. Beattie, a Christchurch accountant, who has been appointed receiver - manager, said that he would visit the Chathams soon. The meat works are still being used with a staff of four, under the engineer-man-ager, Mr A. Thomas, a resident, killing sheep and some cattle mainly for local consumption. The abattoir was built with family labour in 1963 by Mr P. A. Smith, a Chatham Islands farmer, fisherman, hotel proprietor and former New Zealand Bugby league captain, who formed the Te Awatea Meat Company. The abattoir was offered for sale as an island co-operative and bought for $40,000 in 1965. Most of the farmers on the main island took shares in the Chatham Islands Meat Company formed to run the works in 1966. The abattoir was greatly expanded. The company obtained a limited export licence to send boned meat to Asian markets. Butchers from the mainland were employed towards the end of last year and a manager from Southland who worked up to 80 hours a week was appointed. The company’s difficulties have been economic (communications and transport to New Zealand), sociological

(rivalry between island farmers and distrust of outsiders, stemming from experience of unfulfilled promises from the mainland) and political (how much any government should promise in help to the Chatham Islands).

The company’s biggest challenge, however, was fortuitious. The crayfishing bonanza, not thought of when it was being formed, has conincided with its three years. So many of the Chathams Islanders have been earning big money in direct or ancillary work as a result of the crayfish boom that they have not had the time nor the in-

donation to supply the works with sheep or cattle. Sheep with two or three seasons wool on their backs; sheep dying in paddocks and on the roadside; sheep being shot or driven over the cliffs, have been seen in the last three years. The drop in wool prices in 1966-1967 accelerated the move towards work in the crayfish industry. The fact that the meat company was offering only 75c for adult sheep this year also contributed to loss of interest in the works. Mr Beattie has a difficult task to advise the Government, through the State Advances Corporation. In recent years the Government has sometimes put more money into projects which have been failing economically, such' as S.P.A.N.Z., Sea Products, and the Whangarei glass works. The future of the Chatham Islands Meat Company may depend on the report of Mr Beattie whose biggest problem may be to get acceptance by the island shareholders of an otuside management.