WEALTH FROM THE SEA

Dominion, Volume 26, Issue 102, 24 January 1933, Page 12

WEALTH FROM THE SEA

Northern Fishing Enterprise

PROFIT-SHARING SCHEME

An industry which promises .to provide employment for a large number of New Zealand’s unemployed and at the same, time develop the valuable sea fisheries of the northern coasts is about to be launched in Auckland ou a very large scale. It has long been known that New Zealand in her sea fisheries possesses a great potential source of wealth and food supply, but so far the effort that has been made to derive any national benefit from this great asset has been comparatively small. and mainly to meet a local demand. The project about, to be embarked upon by the Zealandia Packing Company, Limited, is therefore of public importance, for it is intended not only to serve markets already assured as far away as South Africa, the East,-and India, but to give unemployed men an opportunity of engaging in an industry that will enable them to participate in the wealth they help to create. The company has been operating in northern waters long enough for the experts associated with it to be thoroughly satisfied that there is a tremendous future for the industry. The company started in a comparatively small way with a factory at’Waipapakauri, with the object of canning and kippering fish caught on the nearby fishing grounds. It was soon evident that by the use of modern methods a steady supply of edible fish, of several varieties could be secured, and the fact was established that there was a market for the output of the factory in many parts of the world.

Extension of Operations.

Encouraged by the prospects the directors of the company decided about the middle of last year to extend operations and increase the plant, with the object,of coping with an output of 40 tons of fish n week. These larger operations were estimated to provide employment for. 480 persons. At this stage the capital of the company was fixed at the comparatively modest sum of £20,000. The pioneers of the company were Mr. J. Rigg and Mr. L. E. Andrews, and they are playing an important part in the larger development scheme. ft >was at this stage that the vast potentialities of the fishing industry in New Zealand came under the notice of Mr. G. M. C. Hart-Smith, a London banker, who has also controlled British trawlers and has been a director of the British Trawlers’ Federation. He not only saw the possibilities for the expansion of New Zealand’s export trade, but the equally important opportunity of providing useful and remunerative employment for a very large number of the Dominion’s workers, nnd, moreover, work that would be of lasting benefit to themselves and the country. On his advice it was decided to reorganise the company on the most modern lines and to make it possible for those engaged in the industry to share in the profits of their labour to the fullest possible extent. To that end the capital of the company has now been increased to £270,000, and arrangements have been made for acquiring modern boats and fish-treating plant. Seine Net Methods. The method to be followed in catching fish will be by the seine net, operated from boats specially designed by the Wearside Boat Building Company, of Sunderland, in conjunction with the English firm of Thomycrofts. An order for 40 of these boats is being arranged with the Wearside Company. They are each 30ft. in length, with a beam of Oft. and a draught of 4ft., with accommodation for a crew of three. Diesel engines nnd pumping and winding machinery are being manufactured by Thomycrofts to their own special design, and when completed the boats will each carry 2J tons of fish under the best possible conditions. The company, after careful consideration, has decided to adopt the advice of those in touch in England with modern thought as to the future co-operation of capital and labour, and has accordingly arranged that those associating themselves with the industry shall receive the major portion of the results from their labour and money. With the increase in the capital of the company to £270,000 it has been arranged that each applicant for 250 shares or more will become eligible for employment under contract for a period of three years, with an earning capacity of not less than £5 a week. The shares carry a non-cumulative interest of 7 per cent.', payable before any other class of share. They then participate up to 15 per cent, with the ordinary shares, after which any additional profits available for distribution will be divided ns to 75 per cent, to the preference and 25 per eent. to the ordinary shares.

Nominating the Unemployed.

It is recognised that there are many suitable men among the unemployed who would find a happy future in the industry, but lack- the capital-necessary to participate. To meet this condition, provision has been made for those having dependants who desire to join the company to take up the requisite number of shares and to nominate the worker. The investor may retain the 7 per cent, interest, allowing the worker to benefit from any further dividends until he is in a position to repay.

As showing what the development of the company will mean to the community, the carefully-prepared estimates reveal that a response of 20 men would enable the company to enlarge its plant to meet present orders and within two months it would be providing active employment to over 200 hands, earning between £3 and £9 a week. The value of the output from this employment would create an additional export of over £370,000 a year. Progressive extension could be carried out as the demand increased, and it is considered that a first stage of development providing employment for 1000 persons, with an average earning power of £5 a week, is conservative, creating an export of over £1.000.000 a year and additional spending power in the community of approximately £250,000 from weekly earnings. To meet this demand a.catch of 500 tons of fish a week would be required. It is proposed to offer contracts to cooperative shareholding employees on n basis of a weekly average of three tons a boat. The payment would be not loss than Id per lb for all classes of fish.- so that the average earning for a boat wilh three hands would be about. £2B, less the running expenses of the vessel. BUTTER TRADE REVIEW Empire Brands in the Midlands London, Jan. 21. In their annual report on the butter trade, A. L. Mills and Co.. London, refer to the great increase .of consumption which lias enabled this country to absorb the enormous imports amounting in 1932 to 522.500 tons, of which the Empire supplied 52 per cent. The average consumption of 1931 was 7325 tons weekly, which increased in 1932 to 7700 tons, and it was estimated that during the last two months of the year it averaged 8200 tons weeklyl The report also states that the outlets for Empire butter are continually expanding, particularly in tire Midlands, and in the North of England. It can now he said that Empire butter is selling in practically every city, town, and village in the United Kingdom. Press Association inquiries show’ that this increase in consumption—which, of course, is largely due to the low retail price of lOd. and 1/- per lb., and in some places slightly lower—is seriously affecting the trade in margarine, of which some • well-known brands are now retailing at 9d. for two t-omids.

Haw materials from which margarine is manufactured are all now cheap, notably copra nt. slightly over £l3 per ton; hut the margarine people are having a very lean time.