MR. LYSNAR'S CHARGES

Evening Post, Volume CXII, Issue 1, 1 July 1926, Page 10

MR. LYSNAR'S CHARGES

POVERTY BAY MEAT WORKS

MEAT BOARD'S POSITION

DEFENDED BY CHAIRMAN.

A further echo of the Poverty Bay Meat Works Commission was heard in the House of Representatives last night, when Mr. D. Jones (Ellesmero), who is Chairman of tho Meat Board, replied to statements which havo been made by Mr. W. D. Lysnar, the member for Gisborne, regarding the sale of the works to Vestey's. "Why not wait until the hon. gentleman is in his place?".asked Mr. P. Eraser (Wellington Central), in drawing attention to the absence of Mr. Lysnar from tho House. Mr. Jones: "I am glad of that interruption. The hon. gentleman made his attack on the Minister and myself and disappeared. He knew quite well that I had to follow him to defend myself, ' and I would have been only too glad if he had been in his place to-night." The Leader of the Opposition (Mr. H. E. Holland): "He made that attack before the election." \ Mr. Jones: "This is the first opportunity I have had in this House to defend the charges made against me in tho last two years." Mr. Holland: "The Government endorsed him as their candidate. Is not that an endorsement of the charges?" WHAT THE BOARD DID. The board, said Mr; Jones, had looked into tho danger of big overseas.interests gaining control of meat works in New Zealand, and had stated that it was not prepared to allow them to purchase or rebuild without the consent of the board. The Poverty Bay works had got into serious financial difficulties. The question arose as to whether Vestey's should bo allowed to parchaso the works. Vestey's were in Poverty Bay, and the board considered that if they built,liew works in Gisborno, meaning three for the district, bankruptcy would occur to both the farmers' works when there was insufficient work to keep thoso two works going. In conse-' quence, the board considered that it was far better to allow Ve3tey's to purchase tho Poverty Bay works on condition that they closed up their old works. That would mean that there would bo only two works in tho district. Tho Commission considered that ■two works wero sufficient. Mr. Lysnar had stated that his company was in a satisfactory financial condition, but the Commission found that the position of the company in September, 1923, was a hopeless one, and that this was duo to mismanagement of the directors. Mr. Jones said that although there had been a reduction in rates in Gisborne they were still very high. It cost Is lOd per lb more to freeze a 561b sheep in Gisborne than in Hawkes- Bay; Is 7d per lb moro for lamb than in Hawkes Bay; and £1 7s 8d moro to kill and freeze a bullock. That was one of tho liabilities left by the mismanagement in connection with the company to which he was referring.

"SELL AT A PRICE."

In regard to tho continuous outcry that had been made against the board and tho Government for allowing the works to be Bold to Vestey's, Mr. Jones declared that the ovidonco showed that while Mr. Lysnar was speaking iv the House and throughout the country ho was trying to move Heaven and earth —or perhaps not .Heaven—to sell to the trusts himself. It was shown in evidence that while in Auckland, when it was put to Mr. Lysnar whether he would not sell to Vestey's, he had said lie would sell at a price. "And this," said Mr. Jones, "is tho man who has attacked the late Minister of Agriculture and myself for doing such a dastardly thing as to agree to this sale to Vestey's when he knew that all this evidence was on record. Is it surprising that ho left beforo I spoke' I think not."

Tho speaker went on to show that Mr. Lysnar went to Armour and Co. for financial assistance. The position of the board in permitting the salo was not nearly as bad as Mr. Lysnar himself in trying to sell himself, and ill attempting to allow Armour and Co. to come into this country in connection with tho meat'-trado.

Mr. Jones next referred to the Admiral Codrington, and the evidence of the Commission in connection with her purchase and running. The position was that the farmers in Poverty Bay, after one year's experience, had refused to put their carcasses into the Poverty Bay Meat Works for shipment by tho vessel bocauso that would have meant their remaning in tho works for several months before they could be shipped. ..For the producers to strike a bad season in such circumstances would have meant ruination.

Mr. Jones said that Mr. Lysnar had asked him to undertake tho running of the ship in the interests of the producers of New Zealand, and had wanted him to believe that on one trip tho vessel made £52,000, and £72,000 on a previous trip. If tho Meat Board had purchased the Admiral Codrington too it would havo landed tho producers of the country in an onormous loss. Mr. Lysnar had represented to the speaker that on one trip the vessel had made a profit of £72,000. Tho evidence before the Commission showed that in a statement submitted by Mr. Lysnar to his co-directors he represented the profit as £27,377. 'The directors asked for a balance-sheet, however, and when it was made out it showed a loss of £24,000. The other night the speaker had asked Mr. Lysnar if his company still owned the vessel, and ho replied in tho affirmative, whereas a sworn declaration by Mr. Lysnar showed that he had no interest in .the boat on 23vd February, 1924. Either the declaration was true, or it was false. Mr. Lysnar had boon an advocato of a producers' shipping line, but the evidence before tho Commission showed that he was prepared to sell the vessel to the Shaw, Savill, and Albion Company.

INTERESTS OP PRODUCERS

In conclusion, Mr. Jones read extracts from the report of the Commission saying that thoro was no real merit in the charges which Mr. Lysnar had made against tho Moat Board or the Minister.

"I am quite satisfied," said Mr. Jones, "that the public,- think what they will of the member for Gisborne, will say that tho Government, and the Minister, and the board, did everything possible, and that tho only thing' we had in view in . connection with the whole case was the interestsof the producers of New Zealand. I only wish the member for Gisborno had done the same."