The Grey River Argus FRIDAY, October 14, 1949 OVERSEA CAPITALISTS AND NEW ZEALAND

Grey River Argus, 14 October 1949, Page 4

The Grey River Argus FRIDAY, October 14, 1949 OVERSEA CAPITALISTS AND NEW ZEALAND

ALTHOUGH long recognised as a leading factor in the export meat industry of the Dominion, the overseas marketing trusts may not now be regarded by most people as exercising control to the extent revealed last night in Parliament. A Labour Member, Mr Kearins. gave the approximate figures of interest and control possessed by overseas concerns, some of which are among the biggest in the world. Companies like Vesteys have admittedly a record of enterprise, and have doubtless contributed technical a,nd managerial skill to the advancement of the meat trade, but by comparison the co-operative system is far preferable for the producers as a whole. In times like this, when the commodity is in short supply, the producers in any circumstances are sure to prosper, but should the sellers’ market come to an end, as it ultimately may, the big meat trusts undoubtedly would exploit the producer. The criticism last night to which Members of Parliament subjected the Meat Board is evidently based on an apprehension that the Board might be disposed to tolerate monopoly. The effort of Southland producers to secure a permit for new co-operative works has so far been thwarted, and if the reason were in any degree ~a regard for oversea interests, then the Board would be regarded as running counter to the principle of co-operative processing and marketing, which has become the settled policy of the Dominion. In the dairy industry that principle has proven its value, and in the case of an expanding meat industry, such as Southland’s, the ownership of the works by the farmers is the policy best calculated to sustain the expansion. There is a notable instance in Australia where oversea enterprise has failed to sustain meat production—that of the Northern Territory, where Vesteys went in. with large concessions and big promises, but to-day the Government is endeavouring to arrange something better, provided the British Government lends its support. As things arc the meat works of the Dominion are more than two-thirds under the control of overseas interests, and the fact is a potential handicap should those interests be in a position to pit against New Zealand suppliers the meat of other suppliers. Moreover, qp-operative works are able to compete more effectually if the profit factor is not exaggerated by the interest of non-producers. Thus the co-op. dairy companies are eliminating “dry” shareholders, and co-op. meat companies have no advantage to gain from the equivalent, especially if it be the oversea capitalist. 111 the present instance the significant point is not the oversea market, but the point of production, where the producers are meantime denied scope for fresh initiative. That form of competition is ultimately a menace to industry.