Works head upset by P.M.

Press, 10 April 1978, Page 1

Works head upset by P.M.

Waitaki-N.Z. Refrigerating, Ltd, had not profited from processing livestock to the extent of financing capital projects beyond the freezing works, raid the company’s chairman (Mr R. P. Thompson) yesterday. Mr Thompson was replying in a supplied statement to reported comments of the FTime Minister (Mr Muldoon) about the profitability of freezing companies. Mr Muldoon accused the Freezing Companies’ Association of making misleading statements about its members’ ability to meet the Meat Workers’ Union claim for a 20 per cent wage increase. Mr Muldoon said that one big New Zealandowned company had recently been able to find capital to buy hotels and. more recently, an Australian meat-processing

company. , Mr Thompson described Mr Muldoon’s comments as inaccurate, and said he regretted that he had seen fit to single out Waitaki for implied criticism. “Late in 1977, the company began building a hotel in Auckland, where hotel beds are desperately needed. The equity base tor this project is provided DV

Town House, Wellington, and Town House, Dunedin, and the loan money has been subscribed from overseas under a guarantee from the Housing Corporation,” Mr Thompson said. “It is not true that Waitaki more recently found capital to buy an Australian meat-processing company. Subject to approval bi’ the Australian and New Zealand Governments, Waitaki will buy 25 per cent of an Australian meat company, the funding of which is based on the sale of surplus assets.

“Waitaki’s board is confident that the aquisition of an interest in F. J. Walker, Ltd, in Australia will improve the competitive position of the company, and New Zealand, particularly in marketing. Practical evidence of this has already occurred,” Mr Thompson said. “Finally, it is of the utmost importance that the country and the Prime Minister should realise that processing charges in freezing works, and their related costs, must be completely divorced from the most uncertain profit from meat trading, and any other facet of the company’s affairs,” he said.