Cheese exports up with Kraft entry?

Press, 14 November 1981, Page 12

Cheese exports up with Kraft entry?

PA Gisborne The Government would take no notice of opposition by the Federation of Labour to the big Kraft Foods shareholding in Rutland Industries, says the Prime Minister (Mr Muldoon). Reacting to opposition to the share acquisition expressed by the F.O.L.’s president, Mr W. J. Knox, Mr Muldoon said the move had the support of both the Dairy Bpard and Federated Farmers, and the Government agreed.

The F.O.L. reaction was “a knee-jerk reaction to involvement, by a foreign company,” he said.

The regulations covering foreign investment in New' Zealand had worked well for 17 years. “If Jim Knox wants to

govern the country he should stand for Parliament,” he said. Mr Muldoon said the Kraft involvement would mean more cheese exports and more jobs in the processing industry. “It has been approved on that basis. The Government favours it. The Dairy Board favours it, and Federated Farmers favour it,” he said.

“It is a thoroughly worthwhile proposition which does more for domestic processing of cheese and will sell more cheese overseas.” In Auckland, the chairman of Butland Industries. Ltd, Mr J. M Butland, said that the fact that New Zealand interests retained control of the company being set up with the Kraft Corporation was the greatest security that could be sought.

Kraft’s 49 per cent interest was not a controlling interest. Federated Farmers had recognised the facts of the situation — that the circumstances had changed significantly since it was proposed that Kraft take a majority shareholding in 1973.

The joint venture, announced on Wednesday, will involve processed cheese and a range of other New Zealand food products. The company expects to produce an additional $l5 million from cheese alone in the first year.

Mr Butland said the intention was to export all the additional output. He did not think there would be much impact on the local market..