New Freezing Works For Southland Thought To Be Inevitable In The Future

Otago Daily Times, Issue 27211, 14 October 1949, Page 8

New Freezing Works For Southland Thought To Be Inevitable In The Future

Parliamentary Reporter WELLINGTON, Oct. 13. Although differences exist in the southern provinces concerning the necessity for the establishment immediately of a new Southland freezing works, members of both sides of the House were optimistic of the establishment in future of a freezing works-in Southland when the House to-night considered the report of the Agricultural and Pastoral Committee, which had expressed its opinion against the establishment of a new export works in that province.

The main Opposition speaker, Mr T. L. Macdonald (Wallace), said that eventually the time would come when -a new licence would be necessary, in Southland. The prospects of the future development and expansion of that area were very great indeed. The House had approved the report of the committee. While the. petition might be a matter of extreme disappointment to some Southlanders, it was good to have some decision, said Mr Macdonald. Southland farmers were not unanimous on the prayer of the petition. What would concern the farmers of Southland now was not so much the present as the future. Eventually the time would come when a new licence would be necessary for Southland. There were lime deposits and other advantages available.

Mr Macdonald said the movement in Southland for a new freezing works reflected the very long-standing dissatisfaction of farmers in the district. On the evidence presented to the committee it could not have brought down any other decision. The tribunal was impartial and the ground was well covered. He hoped that local freezing interests would look at the report and do all they could to improve the relationship between the Meat Board and the producers themselves. Mr A. C. Baxter (Govt., Raglan) said that there was a very serious difficulty in Southland. Southland freezing works had induced, by fair or not fair means, • labour from the North Island to engage in the industry. Southland people were clearly getting substantial dividends, but were obviously not worrying very much about the coninued supply of labour-in heir area.

Mr Nash Supports Proposal

The Minister of Finance, Mr Nash, took the view that Southland farmers who were willing to put up the money for the works should be encouraged, because there was a strong case m their favour! He had received representations some months ago from bzu farmers who were willing to subscribe capital for the purpose. They proved that there was a good economic case for another works because the present arrangement. forced stock out of the province for processing. They stated that they lost through inability to ship from Bluff up to Is 3d on every lamb, Is 9d p sheep, and 18s 6d for every head of cattle. „ , Mr G. H. O. Wilson (Govt., Palmerston North): They did not give that evidence to the committee. The Minister said he was told by these ■ farmers that the loss through inability to ship all Southland stock at Bluff amounted to £30,000 per annum.

Southland was a province so fertile that he thought it marvellous to anyone who came from the North Island, and its potential production was tremendous. He thought Fletchers the most efficient firm in the Dominion, though he did not like many of the practices followed by Vestey Bros, and regarded it as a menace that overseas interests sliould gain a major control over the meat freezing industry. His own opinion was that, assuming that there should be another freezing licence in Southland, it should be on the basis of the farmers having 55 per cent, of the shares and Vestey’s 45 per cent. “I think there o.ught to be a new works now,” said Mr Nash, “ but the committee on the evidence thinks this is wrong. The position, however, should be continuously watched, and something might be found to be coming down from Otago.” Mr Nash considered that those concerned ought to determine the position and not' wait a few years. If it were decided now it would take several years to get the works in operation. The Mataura works did not appear to be capable' of expansion, while the Ocean Beach works, owned co-opera-tively, would have to be almost rebuilt Then there was the Southland Farmers’ Company which had done good work, but had helped to exploit the farmers, and it would be good if the farmers were able to do the job.

Committee’s Findings

The chairman' of the commattee f Mr Wilson, moving that the report be adopted, said it was quite clear that in the past conditions for fanners sending stock to the Southland works were not satisfactory, and it was also clear that there was a responsibility on the part of the Meat Board to have exercised its authority to secure improvements. The committee felt that there was a joint responsibility on the Meat Board and the Department of Agriculture to keep themselves informed as to the position and whether proper services were provided for the producers. The position should be discussed periodically with Federated Farmers.

The committee was not prepared to say when a licence should be granted, but it was inescapably forced on it that there was no immediate need for it. The committee was unanimous that it was undesirable for overseas interests to acquire any greater control of the industry if the farmers were to increase production. The companies and the Meat Board must see that farmers’ operations and arrangements were not thrown out of gear by hold-ups at the works. “I feel that the Southland farmers have a real grievance as far as the Meat Board is concerned,” he said. Mr G. R. Herron (Oppn* Awarua): I do not think the Meat Board has handled the position at all well. Members of the board should have gone down to Southland, met Federated Farmers and put ail their cards on the table, explaining just why they could not accept the proposition from the Southland farmers. Instead of that they allowed an awkward position to develop. They refused the farmers’ application for a licence, but would not say why.” ‘ He felt that the time had arrived when there should be a different system of electing the board. so that it had a much closer relationship with the producers. An increase in the number of board members elected by the producers on the ward system was required. There should be real producer control.