WAINGAWA MEAT WORKS.

Otago Witness, Issue 3899, 4 December 1928, Page 19

WAINGAWA MEAT WORKS.

TRANSFER TO BORTHWICKS. PRIME MINISTER REPLIES TO CRITICISM. WELLINGTON, December 1. With reference to the criticism of the action of the Minister of Agriculture in approving of the transfer of the license of the Waingawa meat works from the Bank of New Zealand to Messrs. Thomas Borthwick and Sons (Australasia), Ltd., expressed by the chairman in his rental ks recently at* the annual meeting of the Wellington Meat Export Company, the Prnhe Minister (Mr J. G. Coates), m a statement, says:— “It is suggested that the action of the Government and the Meat Producers* Board in this matter is a complete change from the policy adopted in not approving of the application for the transfer of the Wellington Meat Kxport Company's Ngahauranga works, together with the Kakariki works, to Messrs Borthwick some little time ago. I may point out, however, that the two cases are not analagous, seeing that the Ngahauranga works are very definitely one of the key works of the Dominion, whereas the Waingawa works could not be used for other than local stock except under very serious disadvantages. The works of the Wellington Meat Export Company at Ngahauranga are unquestionably key works, seeing that they are situated very conveniently to Wellington and at a point where main lines of transportation converge from east to west. This constitutes the main reason why the Government and the Meat Board, while declining to approve of the transfer in the case of key works at Ngahauranga, agreed to it in the case of local works at Waingawa. It must be borne in mind also that it is of great importance to the Wairarapa district that the Waingawa works shall be in full operation forthwith to deal with fat stock, particularly lambs off their mothers, and this made the question of transferring the license one that had to be decided with the least possible delay. Although the bank operated these works last season, it was strongly averse to continuing to,do so for the coming season. “ It 'is somewhat significant that the chairman of the Wellington Meat Export Company admitted in his remarks that public feeling seemed to be with the Government when it declined to agree to the 1 company’s application some time ago to

transfer its license. I think it will be found that the action of the Government in the present case will also meet with general approval, particularly iu the producing district more immediately concerned.”

Speaking at the annual meeting of shareholders of the Wellington Meat Export Company on Thursday, the chairman (Mr O. 8 Watkins) said: “The announcment that the Government has granted a license to an overseas firm to operate the Waingawa Freezing Works comes as a surprise, after the same Government had refused this company the right to sell to the same firm two or three years ago. It is difficult follow such vacillations in policy, if there is any policy, and the Government and the Meat Board have much to explain. This company and its shareholders were much affected financially by the first decision of the Government. They were denied the right to sell their assets and convert their interests into cash. Then, on the assumption that the policy of the Government and the Meat Board was a settled one, the company adjusted its capital at the expense of the ordinary shareholders, and made preparations to freeze for a larger output. Now the Government reverses its policy. In sooth, business is difficult under such vacillations.

“ I wish to make it clear,” said Mr Watkins, “ that I think the power of the Government to refuse a license to an overseas firm should only be exercised under extreme circumstances, such as have not yet arisen in New Zealand. The Government was wrong in the first instance, but I admit public opinion seemed to be with the Government. Nothing, however, can justify this volte-face on the part of a moribund Government. It ought not to be able to make chalk of one and cheese of another, and this company has a claim in equity for compensation against the Government for its action in the first instance.