FREEZING CHARGES

Poverty Bay Herald, Volume LXIII, Issue 19124, 19 September 1936, Page 8

FREEZING CHARGES

UNIFORM RATES URGED

DOM INTO X-W ID E BA SI S

GISBORNE COMPARISON

A proposal Ihal freezing charges should bo uniform l.hroiighoul the Dominion was made by Mr. F. S. Bnwi'ii at a meeting of the Poverty Bay provincial executive, of the Farmers' Union yesterday afternoon.

He did so wheu submitting a. report on a remit which he proposed at the electoral committee of the Meat Board, and continued by giving arguments in favour of his proposal, also contending that the time would come when the Government would take over all the freezing works in fhe Dominion.

At the close, a hearty vote of thanks was passed to Mr. Boivon for his comprehensive report, Mr. J. C. Field saying that Mr. Bowei). had. done a grout deal for fhe meat; industry in .New Zealand. Mr. Field said ho agreed with the nationalising of the-meat industry in the Dominion. Mr. Bowcn's report included the following, commencing first with his remit to the electoral committee meeting:— "The remit read as follows: 'We recommend a uniform consolidated freezing charge throughout, jSTew Zealand to include a fixed rate of interest on all capita] employed in the freezing industry, irrespective of .ownership of works. REMIT AMENDED "This was amended to read, after discussion: 'The board be urged to prevail upon freezing companies to reduce lulling charges to a level that will be in conformity with a reasonable return for capital involved."' This was carried unanimously. "In support of my remit I produced maps of both islands giving the location and ownership of each works and the quantity of slock killed, 1934 and 1935 figures, also the consolidated freezing charge of most; of the works, taking the Meat Hoard average weight for lamb, tegs and mutton in each case, which showed. Whakatu to be the lowest in the. Dominion with the highest kill. Of the capital held in these vorlcs, it would be safe to say that the majority is held by overseas companies and investors known as dry shareholders whose object is to keep freezing charges as high as possible to enable a good return on their investment.

"In the North Island approximately 5,700,000 sheep and lambs were killed last season, and of this number 4,600,000 were killed in the works that did not belong to farmers, .leaving about ],100,000 for the two farmer companies.

".V comparison of charges with Whakatu and other companies is of interest to fanners. Compare again Hawkc's Bay and here. While, freezing rates at Whakatu are the lowest in the Dominion, the rates hero are about the highest. The Itawke's Bay kill, as a district, has gone up to 1,250,000 carcases, while- we have gono down to 415,000 carcases, and with T.okomani in under 000,000. COST TO THE INDUSTRY "Some indication of what excess charges mean is shown by the following amounts on all meat at 3d per lb from New Zealand: Lamb, S,7;">0,000 carcases, £315,000; mutton, .1,030,000 carcases, £111,000; beef, 340,000 quarters. £60,000; beef (boneless) 275,000 freight carcases, £10,000; pork, 500,000 cwt, £05,000; total, £507,000. "If the Meat Board can arrange shipping freights with live shipping companies, is there any reason why freezing charges cannot be arranged by the board also'' "Last year, I sent the fallowing remit to the delegates' conference and received practically the unanimous support of the conference: 'That in view of the uncertain position of the meat industry and the multiplicity oi freezing works owners, we move Uiu. Uie ALetu Board approacn the govern ; jnent with a view to initiating a special Act giving districts tue rigui to acquire any freezing works in the Dominion at 'the current value, the export license to pass with the works.' "YVe received their reply at our last meeting, being the following: 'The board is continuously giving consideration to such questions as the above, but having regard to the provisions of the Slaughtering and Inspection and Amendment Act, .1934, which gives power to the Government upon the recommendation of the Meat Board to fix freezing charges, the. board does not consider it advisable to make a recommendation to the Government upon the lines of this resolution.' "It is apparent from this reply that the late Government and the present Meat Board armed themselves with powers which they failed to apply. What, the present Government will do remains to bo seen. ACTION OP TRUSTS "To read the Meat. Board report on pages eight and nine, ono w.ould assume that the meat trusts had control of tho Australian and Argentine meat industry, and that our board had completely checked their advance in this country. Such is not the case. They own all they require to own, and their influence over the balance is beyond the power of tho .Meat, Board to cheek.

"The board has no control over the sale of our moat in England beyond advertising extensively to use Now Zealand meat, and the purchase of a cold storage site which has never been used. The'board also has made contracts which provided 102 shipments last season, on terms equal to other countries. Before we can make any progress with the. freezing industry of this country, we have to eliminate all

capital in all freezing companies not producing meat, and restore it back into the farmers' hands.

"The Merit Board has been 14 years' in existence and can hardly be expected to make a recommendation to acquire the works as a first step to complete control of the industry. In any ease, the Government would have to prepare an Act for the purpose, and tho sooner it is undertaken tho better. "I am certain that a. National Freezing Association will bo formed in New Zealand, and that the Government will acquire the freezing works in the near future. When that time comes, the higher the kill in each works, tlte better for the industry. This will mean the elimination of at least. 10 or 1J unnecessary works."