Concern over Phoenix grant

Press, 19 December 1981, Page 20

Concern over Phoenix grant

A concern that a $1 million grant made by the Government towards the establishment of the regional abattoir and meatpacking works at Kokiri was listed as a revenue item instead of a capital gain, in the books of the Phoenix Meat Company was again expressed at the annual meeting of the company at. Greymouth yesterday.

the item had been rasied at the annual meeting last year, when it was agreed that the position be investigated. Mrs M. Noble said yesterday that she was concerned that the shareholders at large and not just those attending the meeting should be officially advised. The secretary of the company’s board, (Mr P. Roselli) said that the company’s auditors said that it should be listed as revenue, and an opinion obtained from the research division of the Society of Accountants endorsed that view as it was the international standard.

After further protracted discussions, Mr M. D. B. Jeliie said that the real point

of concern was that since the grant was not taxable, when the time came for dividends to be distributed it should be equally non-taxable in the hands of the shareholders.

A representative of the autitors told the meeting that there was no chance of the item being lost in the annual reconciliation and would be continually considered in discussions with the Inland Revenue Department. The meeting agreed to send the opinions to the shareholders, and to include with it a statement from the Department. Three directors retired by rotation at the meeting. Messrs S. M. Wallace and A. S. G. McGeady, representing A group shareholders (producers) were re-elected unopposed.

Mr D. Morten, representing B group shareholders (investors) did not seek reelection because of his pending retirement as managing director of Canterbury Frozen Meat Company, Ltd. Mr M. G. Sepie, secretary of C.F.M. was elected to succeed him on the Phoenix board.