FREEZING CHARGES

Timaru Herald, Volume CXXXVII, Issue 19374, 24 December 1932, Page 2

FREEZING CHARGES

LETTER TO A. AND P. ASSOCIATION. The secretary of the Timaru A. and P. Association has received a reply from the South Island Companies’ Association to a letter in reference to the reduction in wages current in the freezing industry; and the question whether such reduction was being passed on to the primary producer. The letter stated that presumably the question referred to the matter of a reduction in freezing charges, which, of course, allowed for a greater return to the farmer on the realisation of stock, and also affected the buying price at per head or per pound. The letter added: “Although the question of freezing. charges is not a matter dealt with by this Association as an Association, it is, however, within the writer’s knowledge that substantial reductions already have been made in freezing charges, both in the North and South Islands, and publication has already been made of this fact. I quote ' the following extract from a newspaper report of the North Canterbury Freezing Company’s annual meeting held on November 23: ‘The Directors are pleased to inform producer-shareholders that the reduction in charges for the coming season will be a substantial saving to the sheepowners’ costs. The freezing charges will be reduced from .9d to .8d per lb for lambs, and from .8d to .7d for sheep, or a percentage reduction of 11 per cent, on lambs, and 121 per cent, on sheep. The period of free storage for clients has also been doubled, and. instead of a fortnight, a month will be allowed before the storage charge becomes payable. TTiese

concessions will equal 3id on 341 b lamb, and 6d on a 601 b sheep carcase, and will show a practical desire to meet the imperative need of the producer, for reduction in his operating costs.’ ” The writer also quoted from the newspaper report of the Canterbury Frozen Meat Co., Ltd., annual meeting held on December 13th. as follows: “We are pleased to be able to advise that in Canterbury owing to reductions in wages and other costs, it has been possible to bring down the freezing charges by one-tenth of a penny per lb, and it is necessary to point out that this concession amounts approximately to twice the reduction provided by the freezing companies’ amended wages and conditions. We recognise, however, that our interests, and those of the farmer are identical, and hope that the policy of reducing costs to the producers will help them in these hard times, and also result in increased support from them.” The writer thought these references answered the question raised in the Association’s letter, and it was safe to assume that the freezing companies generally were in open competition for the farmers’ stock, that the reductions in charges would be common amongst all companies operating. At the various conferences. Conciliation Council’s, etc., held in connection with their endeavour to reach agreement. it had been stated repeatedly to the Union’s representatives that the reductions in wages would be passed on in various forms to the primary producer. In the light of this, and at this stage, it therefore appeared doubtful if this fact would carry any more weight than the representations made previously.