DALGETY AND CO.

Otago Daily Times, Issue 23687, 20 December 1938, Page 6

DALGETY AND CO.

NEW ZEALAND'S FUTURE . LEGISLATION CAUSES ANXIETY CHAIRMAN'S COMMENTS CFrom Our Own Correspondent) (By Air Mail) LONDON, Nov. 17. "Whether, in adverse times, a small country like New Zealand, can stand such a drain (as the Social Security Act) on its resources, must cause much anxiety to all thinking people within its boundaries and elsewhere," said the Hon. Edmund W. Parker, chairman of Dalgety and Co., at the annual meeting to-day. Mr Parker said that the Act would cost the country something like £ 20,000,000 per annum when in full use. Commercial firms were already feeling the effect of rising costs and high taxation. Dalgety's expenses had increased as a»result, of recent legislation. "And," he added, "even now we do not know quite where we are." Mr Parker stated that the net profit for the year was £132,374. The balance brought forward from last "year was £125,162. After deducting the dividend of 5 per cent, on preference shares, and a 3 pei cent, interim dividend on ordinary shares, there remained £187,536. Shareholders approved the recommendation that a final dividend of 3s per share, Jess. British income tax,, be paid on ordinary shares, making 6 per cent, for the year. After deducting £25,000 for the Staff Provident Fund, £117,536 remained to be carried forward; In his address to shareholders, Mr Parker dealt at length with the company's affairs in New Zealand, Australia, East Africa and Tanganyika. A PROSPEROUS YEAR "New Zealand," he said, "has again enjoyed a prosperous year. Prices for the Dominion primary products, with the exception of wool, have been on a high scale, and this has resulted in heavy buying of imports. The trade figures for the year ended March 31 last reveal a drop of £5,671,000 on the £12,614,000 favourable trade balance of last • year. Imports were valued at £58,065,000, compared with £47,621,000 for the preceding year, and exports at £ 65,008,000, as compared with £60,235,000. "At the recent elections Mr Savage's Socialist Government was returned with practically the same majority with which it went to the polls. This was an unexpected result, as most good judges thought that the National Party would recover a great number of seats, and that, even if they were not unseated altogether, the Socialists would come back with a much depleted majority. It was expected that the farmers' vote would go against the Government, as its programme of higher wages, shorter hours and large expenditure on public works has made ii very difficult for the farmers to procure labour. However, there is no doubt that the present Government has now received a direct mandate from the people in support of its policy, and it is only to be hoped that it will use it wisely and with moderation. HOW WILL POWER BE USED? "How the Government will use its immense power in the handling of the country remains to be seen. It has been favoured during its term of administration with prosperous times. It has embarked on a scheme of social security on a scale which