PROMISE TO MINISTER

Press, Volume CXV, Issue 33932, 27 August 1975, Page 1

PROMISE TO MINISTER

(N.Z. Press Association) WELLINGTON, August 26. The Minister of Agriculture (Mr Moyle) tonight emphasised that he had written assurances from Waitaki Industries, Ltd, that it would provide for producer participation in its merger with the N.Z. Refrigerating Company, Ltd. The Minister said that it was now a matter for discussion between the company and the farmers’ organisation as to how this could be best achieved. “My only concern in this

matter is that the interests of the fanners should be protected. Beyond that, it is a matter for the shareholders, who have apparently decided in favour of the WaitakiN.Z.R. merger,” he said. Mr Moyle said that he had written assurance from both Waitaki and N.Z.R. that should a merger be approved the merged company would provide for producer participation. Immediately the outcome of yesterday’s meeting broke in Parliament, Opposition members rose to question Mr Moyle. The Minister was taking questions on his department’s annual estimates of expenditure.

Mr J. B. Gordon (Nat., Clutha) said that commercial

commentators were saying that the rug had been pulled from under the feet of the Southland company by the directors of the N.Z.R.

Mr Moyle responded by saying that he wanted to give an “absolute denial” that there had been any deal between the Government and Waitaki Industries. Mr Gordon: “Bunkum.” Mr Moyle said that the allegations of a special deal came from a “special pleader” — the deputy Leader of the Opposition (Mr Taiboys).

The Minister said that it was his responsibility to ensure that meat producers were protected. The Southland company had said that it would provide for producer participation at one of the works, or in some other form. The Waitaki company had given a similar assurance of producer participation, but it had said that it would give a wider holding than just -at one works to ensure that the one did not become uneconomic. The producer interests were assured, Mr Moyle said, and the merger would give New Zealand a stake in the marketing of lamb in Britain. LAMB MARKET He added that the Government was in the process of establishing a meat plant in Central Otago, but that it opnosed the develonment of a full freezing works there.

He did not want to have farmers in the area saddled with an uneconomic unit. Earlier in the debate — before the merger was announced — Mr Taiboys said that Mr Moyle owed the farmers of New Zealand an explanation for going against the recommendations of the meat and wool section of Federated Farmers and the Meat Board. “What he decided to do was to ignore the recommendation.

“He ignores the fact that if Waitaki and New Zealand Refrigerating merge, there will be no competition from Mataura to Picton,” said Mr Taiboys.