Oruru – Fairburns Coy s Application Declined

Northern Advocate, 25 May 1949, Page 4

Oruru - Fairburns Coy s Application Declined

DAIRY SUPPLY ZONING.

KAITAIA, Wed. (Sp.).—An application by* the Oruru-Fair-burns Coop. Dairy Co., Ltd., for a zone to yield an additional 400 tons of butter annually from the present Kaitaia supply district has been declined by 4 committee of the New Zealand Dairy Board, consisting of Messrs W. Hale (chairman) and A. J. Sinclair. This information is given by the chairman of directors of the Kaitaia Coop:Daily Co., Ltd. (Mr E. R. Bird), in a statement to suppliers following a directors’ meeting this week. The Oruru Company’s application shown that Kaitaia production had inwasmade to the zoning authority some creased from 1720 tons in 1936 to 3000 time ago and was heard at Whangarei tons in 1949, while Oruru had deon April 25, the statement advises. dined from nearly 500 tons to 450 tons Basis of application was that this over the same period, additional supply would build up the Kaitaia representatives contended Oruru factory to an 800-ton unit, which that fears of loss of amenities and shipwould be more economic, and which ping services were unfounded.

would; in effect, reduce the existing differences in payout between the two

factories.

The case was substantially the same as that considered in 1936 by the

It was contended that such a zone would preserve the present Oruru factory, other facilities and port services. KAITAIA OPPOSITION Opposing the application, Kaitaia representatives stated that the move would involve the whole district in considerable financial loss and that the scheme would be impracticable. They also opposed the suggestion that any supplier should have bis production arbitrarily zoned to another factory at personal financial loss. It was

Executive Commission of Agriculture,

with the late Sir Francis Fraser presiding, Mr Bird .states. At that time the commission strongly recommended amalgamation, and

declined to grant a closed zone to Oruru.

AMALGAMATION FAVOURED Mr Bird the findings of the dairy board on the recent application, which again strongly recommends amalgamation. The board also confirms, he states, its offer to send a representative to assist in any negotiations to this end. It has been the policy of the Kaitaia company to apply the principle .laid down by Sir Francis Fraser, that any supplier of either company was free to choose, on or before August 1 in each new season, which of the two factories he would supply, the statement continues. Kaitaia representatives addressed- a special meeting of Oruru-FairbuVns’ suppliers and submitted an offer of amalgamation on the basis of purchase of all assets of the Oruru company, or alternatively, for this company to wind up its affairs and individual suppliers to join up with the Kaitaia cqmpany in the ordinary way, receiving full benefits with existing Kaitaia members. 1 > SUPPLIERS TO MEET.

Any further negotiations on a company basis must be initiated from Oruru, the statement concludes. Mr Bird adds that his company is prepared to discuss any matters of mutual interest and that there should be a solution of the problem if the recommendations contained in the zonin gcommission’s recent decisions are carefully examined. It is understood that a special meeting of the Oruru-Fairburns Dairy Company is being held next Monday, May 30, to consider this company’s future position in the light of the commission’s decision.