LOOSES ON HONEY

New Zealand Herald, Volume LXXII, Issue 22225, 27 September 1935, Page 12

LOOSES ON HONEY

ASSOCIATION'S DEBTS HELP BY GOVERNMENT ADVANCE OF £IO,OOO INTERESTS OF THE INDUSTRY [BY TELEGRAPH —SPECIAL KEPORTEnI WELLINGTON, Thursday The Government has decided to advance £IO,OOO toward settlement of the affairs of the Honey Producers' Association, Limited, according to a statement made to-day by the Minister of Agriculture, Hon. C. E. Macmillan.

Humours among honey producers to the effect that the Government or the New Zealand Honey Export Control Board intended to levy a tax, by way of contribution to tho settlement, on all beekeepers, were contradicted by the Minister, who said they had no foundation in fact. The Government had made an advance of £IO,OOO to the liquidator to enable him to discharge the overseas indebtedness of the company and secure a remission of £7527. '

The Honey Export Control Board would repay its agreed portion of the advance, £2600, <vhieh was accepted as being the amount properly payable by the board 011 an adjustment of accounts, and the balance would be collected by the liquidator from those contributories only who were legally responsible. However, the Government's advance would relieve the liquidator of the duty of adopting harsh or rigorous measures to close tho liquidation at an early date, and would enable him to arrange convenient terms of payment with individual contributories. Cause of Liquidation The Minister explained that the affairs of tho Honey Producers' Association, which went into liquidation in 1932, had been engaging the attention of the Government for some time. The liquidation of the company had been brought about through advances made against consignments of honey and advertising costs in the United Kingdom incurred by the company's chief agents, C. and E. Morton, Limited. The company's assets were insufficient to meet liabilities, and the liquidator had been compelled to take recourse against individual shareholders and suppliers. C. and E. Morton, Limited, had showed considerable forbearance, and the liquidator had not exerted extreme pressure on the contributories, but had allowed payments to be made in honey or in cash in small amounts. The Honey Board was assisted by the Government by .means of a loan of £6OOO to purchase from the liquidator the rights to the Imperial Bee brand for Great Britain, but, owing to the depression and other factors, the progress of the liquidation was retarded. On July 31 last the remaining indebtedness to C. and E. Morton, Limited, stood at £24,721, against which credit was allowed for £7194, leaving a net deficiency of £17,527, on which interest was accruing at the rate of 5 per cent per annum. Remission ol £750fl Made

After discussions in London with the Prime Minister, Mr. Forbes, Major J. R. Buckley, managing-director of C. and E. Morton, Limited, visited New Zealand and negotiations took place with the Honey Board, the liquidator and the Executive Commission of Agriculture. It was eventually agreed, the Minister continued, that the English firm should forgo £7527 and accept £IO,OOO in settlement of its claim. The Honey Board agreed to accept responsibility for £2600, which represented adjustments on honey shipped by the liquidator, allowance on London stocks of honey unfit for blending and unexpired advertising. This left £7400 to be found.

The Government, while making it clear that it was under no obligation to assist, had recognised that it was desirable in the national interest and in the interests of the honey industry to effect a settlement of oversea, indebtedness, and enable the Honey Bard to obtain possession of the London depot and' institute a more satisfactory marketing system. It also desired to safeguard the contributories, who were mostly small producers. Therefore, Mr. Macmillan concluded, the Government had decided to advance £'lo,ooo, which would be made available in Londou for the settlement of the claim.