Objection to American Interests

Manawatu Times, Volume 68, Issue 85, 10 April 1943, Page 6

Objection to American Interests

ACQUIRING OWNERSHIP OF COUNTRY’S MEAT INDUSTRY

“We as a board have become very perturbed over the idea of American interests taking over any of our meat works,' ’ said Mr. T. A. Duncan, chairman of the New Zealand Meat Producers ’ Board, in a brief reference to the subject at a meeting of producers in Feilding yesterday. He went on to say that he was satisfied that American interests would be prepared to go to any lengths to acquire ownership of meat works in ?}ew Zealand and he would support every effort owards preventing such an happening. “I honestly think it would be the worst thing possible for producers if we allow these big American interests to acquire our key industries. ’ ’ He did not think that there was any comparison between the sale of the Ocean Beach works to the Cooperative Wholesale Society and the sale of the Meat Export Company’s business to American interests. The C.W.S. was a very large English company with an expanding trade in New Zealand meat and it was the view of the Board that this company should be encouraged to expand its operations in the handling of our meat. The idea of allowing the Meat Export Company’s interests to pass under the control of American meat interests did not appeal and anything of the kind would be detrimental to meat producers. Mr. W. McKay (Apiti): Who are the American interests Mr. Duncan: Swift's, and their methods are not in accord with our ideas. Mr. A. Stuart (Marton) asked for information regarding the share holdings in the Meat Export Company and after Mr. Duncan had given a brief outline of the position, a member of the audience asked whether it was a fact that Swift’s held fifty per cent of the shares having purchased them at a discount. Mr. Duncan was unable to confirm this but said that Swift’s might hold some shares but not In their name. Someone might be holding shares on behalf of Swift’s he said. In reply to another question Mr. Duncan said that Swift’s had a lease of the Meat Export Company’s works which had 24 years to run but there was no right of purchase provision in the lease. “What is the chief objection to an American firm operating in this country?” asked Mr. E. M. Lloyd (Kiwitea). “Their business methods are not ours,” said Mr. Duncan who went on to say that a knowledge of American meat industry methods satisfied him that it would not be advantageous to producers to permit American interests to handle their produce. In regard to the restoration of the Kakariki works a member of the audience asked whether the cost of this work had been charged against the funds in the meat pool. Mr Duncan in reply recalled that when the question lof restoring the Kakariki works was raised by the Hon. W. Nash who pro-, posed to use the plant and machinery recovered from the Port Bowen, the Meat Board had made it plain that it did not require these works. Mr. Nash had said that it was proposed to use the works for storing cheese and butter. However it was a fact that the cost of restoring the works had been charged agains the meat pool and the Board was endeavouring to obtain an adjustment of the position. He went on to state that the Kakariki works was included in the assets of the Meat Export Co., so that Swift’s would, in the event of the sale taking place, acquire two freezing works. Mr. J. Fraser (Manager) mentioned the sale of the Ocean Beach works in his remarks and said that it amounted to the transfer of ownership from one overseas interest to another overseas interest. When the question of the transfer of the works arose the Meat Board called its South Island delegates together to consider the question and a suggestion was advanced that a co-oper-ative farmers company be set up to take over the works but after three weeks’ consideration, it was evident that producers were not prepared to entertain the idea. With a knowledge of the extensive operations of the Co-operative Wholesale Society in the Old Country and the fact that it was the largest organisation handling New Zealand meat the Board saw no objection to approving of the transfer particularly in face of the fact that farmers were not prepared themselves to take over the works. Tho meeting concluded with the carrying of a resolution of confidence in the Meat Board to advise the Government on all policy matters relating to the handling of meat. This resolution was proposed by Mr. J. A. Mair (Feilding) and seconded by Mr. W. E. Barber (Foxton).