Reprieve for meatworks

Press, 15 November 1977, Page 1

Reprieve for meatworks

Parliamentary reporter

Draft price stabilisation regulations designed to limit the capacity of freezing companies to pass costs into killing charges came within an ace of being imposed yesterday by the Government. They were withheld on receipt of advice from Federated Farmers and from the freezing works management that an attempt would be made to absorb a percentage of wage increases into general costs.

“The Goverrment is extreme!}' concerned at the effects that possible increased costs in the freezing industry' would have on killing charges, particularly in view of the difficulties being faced by the farming community,” said the Minister of Labour, (Mr Gordon! last evening. “For this reason the Government had prepared draft price stabilisation (meat slaughtering and processing charges) regulations which could limit the capacity of the freezing industry to pass costs into killing charges.

“Excessive cost increases would have to be absorbed either through lower returns to the industry or higher productivity. The regulations proposed would have in no way inhibited the concept of responsible free wage bargaining between employers and unions. There would continue to be adequate flexibility in any wage negotiations to allow for factors such as margins for skill.

“The freezing industry holds a key position in our

economy and export trade, and to that extent the Government is bound to take action when necessary to protect these interests. “However, in the light of a written assurance received this week-end from the freezing indust y and after talks with Federated Fanners, together with a request from that federation for the Government to withhold action at this time, the legislative proposal by way of regulation has been withheld,” said Mr Gordon. Interviewed after a Cabinet meeting last evening. Mr Gordon told “The Press” that the Govern ment had decided some 10 days ago to implement the regulations. Accordingly they were drawn up. Hr had advised Federated Farmers. the Freezing Works Association and the Federation of Labour. “The important thing i« that wages and other rises must not be loaded on to the killing charges,” Mr Gordon said. “The freezing works know what the position is, and they will have to accept a percentage of any increases.” He explained that the Federation of Labour had been kept fully informed, and was continuing with its own negotiations. The freezing companies’ letter had stated that there was no need to invoke regulations. and undertook to absorb an unstated percentage of any increase. Mr Gordon said he. thought killing charges would rise, but that this rise could be restricted to 1 per cent. That would be “a few cents a lamb carcase.”