Monopoly talk refuted

Press, 1 June 1977, Page 18

Monopoly talk refuted

PA Wellington; Fears that the proposed take-over of the Gear Meat Company. Ltd, by Thomas Borthwick and Sons, Ltd, would create a monopoly and increase overseas domination of the meat industry are unfounded, say Borthwicks. “The worry that competition in livestock purchase in the area would be reduced is unfounded, because 13 different companies are active in the field,” says the company in a statement. Borthwicks had given an undertaking to the Minister of Agriculture (Mr Maclntyre) to operate farmer pools. “It is intended that the livestock-buying and exportmarketing activities of the Gear company be replaced by a new stock-buying company, acceptable to the Meal

Producers Board and in, which we will nut have ani interest. “The interests of Gear’s: farmer clients will be protected by this. “In the meat-processing i area, as in livestock-buying,! Borthwicks neither has a monopoly at present, nor, would it"have under (he pro-; posed new structure.” In addition to its Waitare, Feilding, and Wamgawaj works, and the C.W.S. Longburn works, there are three works owned by W. and R. Fletcher (N.Z.) Ltd, 2 works owned by Waitaki-N.Z.R., Ltd, and works owned by Gear Meat, Hawke’s Bay Farmers Meat Company, Ltd, The Pacific Freezing N.Z., Ltd, T. H. Walker and Sons, Ltd, and works owned by Gear Meat, ton (N.Z.) Ltd and Kowhai Meats, Ltd. ’ With regard to the allega-

tions of overseas control,! Borthwicks says it has been 1 in New Zealand for more than 90 years, and has been: “extrmeely responsive” to the needs’ o* New Zealand! land New Zealanders, the statement says. “The directors and man-. ,agement of Borthwicks ini I New Zealand are all New ( Zealand-born, while many | New Zealanders hold senior; .management positions (around the world. Five years ago the com-, pany sold its Belfast works! to "the Canterbury Frozen' Meat Company, Ltd, and got 1 a 20 per cent shareholding, in C.F.M. Borthwicks record of ( : ploughing profits back into I New Zealand is second to 1 ■none, and freezing workers: (fears that jobs would be lost “‘are groundless” the com■lpany says.