THE MEAT INDUSTRY.

Otago Witness, Issue 3783, 14 September 1926, Page 21

THE MEAT INDUSTRY.

“ONLY ONE METHOD." “There is practically only the one method by means of which the suggested amalgamation of freezing work, could b» carried out,” said Mr J. W. Nolan, chairman of directors of the Gisborne Sheepfarmers’ Frozen Meat and Mercantib Company, the other day, “and legislation would be needed." Discussing the recent conferences at Wellington Mr Nolan said that although there had been a great many discussions, little advance had actually been made a* far as amalgamation was concerned. Tha whole question was an extraordinarily difficult one, and the financing of the amalgamation would be a business that wuldl

equire the assistance of legislation. He had not been present at the meeting of the members of the Farmers* Union, the freezing companies, and the Meat Board, but understood that their final suggestion had been that a commission should be set up to hear all sides of the question and see whether an amalgamation could be wrought about. He was afraid that such a commission would be of little real value, for while they all recognised the difficulties with which the industry was faced, they were unable to suggest a working method by ‘means of whien things could be improved. To his mind the crux of the position was to be found in England, and it was to that end that attention would have to be paid, in the endeavour to improve the position of the paßtoralists. For years many of the co-operative companies had been gradually drifting into difficulties, mainly, of course, because they were not loyally supported by their shareholders, but in this district the position was not nearly so bad as in some portions of the Dominion, where far too many works ..«d been erected. The amalgamation would benefit Gisborne to a much smaller extent than some other centres where competition between freezing works was exceptionally keen. There were only two methods by which the suggested amalgamation could be brought about, and a huge company would be necessary. Debentures could be issued, but os it was intended that some of the works should be closed dotta the security would not be as great as w?uld be needed, and to his mind the only way in which the amalgamation could be satisfactorily completed would be with Government assistance in the shape of legislation. If the debentures were secured by means of

legislation which provided for a levy to be made on the faripers, if necessary, stability would be given to the company and the desired effect gained. He did not see any other manner by which the amalgamation could be successfully completed, and there were so manv difficulties in the way that it was very unlikely definite action would be taken immediately. It was obvious there would be no opportunity of bringing down the necessary legislation this season, and although there was a wide recognition of the necessity for an improvement it seemed that this was nearly as far off as ever.