Waitaki Int. call heeded

Press, 6 July 1988, Page 35

Waitaki Int. call heeded

PA Wellington The Commerce Commission has accepted a call by Waitaki International’s chairman, Mr Pat Goodman, for a speedy handling of competition issues arising in the South Island meat industry rationalisation plan.

The commission’s chairman, Mr John Collinge, said yesterday it was already versed in aspects of the industry, having cleared an agreement between meat companies to close the Whakatu works, in Hawkes Bay, on the grounds that cost-savings would advance efficiency elsewhere in the industry and help New Zealand’s meat exporting effort. Because it was familiar with the industry’s problems already, Mr Collinge said in a statement, he hoped that the commission’s deliberations could be expedited. But it had to assess the

degree in which the South island plan would restrict competition and if any merged business would be dominant in any market, he added. The commission also had to evaluate the extent to which efficiencies and other benefits would arise. The plan involves the merging of Challenge Meats, Ltd, a Fletcher Challenge subsidiary, into Waitaki with Fletcher Challenge taking a 29 per cent holding in Waitaki. In addition, two meat works of Waitaki will be sold to Primary Producers Co-operative

Society. Mr Goodman publicly criticised the commission last year for the time taken to consent to the merger between Goodman Fielder and Wattie Industries. Mr Goodman is the chairman of that merged entity. Mr Collinge said yesterday the commission had to consider the interests of those who might be affected and particularly of those who objected to the meat industry plan. No application or applications or supporting information had yet been received from the companies.