E. C. Fertiliser works drops rebate

Press, 9 October 1982, Page 22

E. C. Fertiliser works drops rebate

PA Wellington East Coast Fertiliser. Company Ltd. a Napierbased co-operative has decided not to pay any rebate on shareholder purchases for the latest year to June 30.

The chairman. Mr P. S. Plummer, says in the annual accounts that the rebate was being dropped because of a 30 per cent profit decrease to $1,223,163 from last year's $1,749,713, and the general economic situation, including the price freeze. He says that the sole reason for the decrease in profit was an attendant decrease in volume caused by the lack of purchasing power of the hill country farmer. He says that it was a cruel combination of circumstances that the price freeze regulations should be introduced just at the time of the company’s annual price review.

“This has effectively fro-

zen our price in respect to domestic increases for a period of two years, from July 1981, to July 1983." Some small increase had been allowed for imported raw material costs. Price increase for the coming increase is under 6.5 per cent "minimal compared with the annual rate of inflation." Mr Plummer says. Fertiliser sales were down a further five per. cent after a drop of 21 per cent in the previous year.

During the year the company purchased 100 per cent of Ammo-Phos NZ, and also bought a 20 per cent shareholding in New Zealand Phosphate Company. Ltd. Mr Plummer one of the founders of the company, and a former Dominion President of Federated Farmers, is retiring as chairman at the annual meeting in October. Three nominations have been made, and a ballot will be held.