“Gear’s future unaffected”

Press, Volume CXI, Issue 32637, 19 June 1971, Page 20

“Gear’s future unaffected”

(N.Z. Press Association)

WELLINGTON, June 18. Although the European Economic Community negotiations are of serious concern to New Zealand, the directors of the Gear Meat Company, Ltd, consider that the outcome will not cause a substantial change in the company’s operations or greatly affect its -long-term profitability, the chairman of directors (Mr R. G. Linklater) says in the interim report. There is a good demand for New Zealand meat products from all international markets and this situation is expected to continue for the next six months, he says. The interim dividend has been maintained at 4 per cent because the immediate outlook for international trading is satisfactory, although there have been substantial increases in costs, including wages and salaries, the chairman says.

Production was lower than in the previous year, but it is hoped that cost-reduction efforts will succeed, and the level of production appears to be seasonal. Mr Linklater says that considerable difficulty has been experienced with shipping in the last six months and consequently stocks are at a peak of s7m, but the bulk of this is sold, and awaiting shipment to overseas markets.