WAIMATE POTATO STARCH

Timaru Herald, Volume CXLIX, Issue 21957, 8 May 1941, Page 3

WAIMATE POTATO STARCH

Effort To Start A New Industry Handicaps Encountered Last year when thousands of tons of potatoes were rotting in the Walmate district owing to the unusual season and increased production, an effort was made to interest growers in a scheme to convert potatoes into starch for the manufacture of dextrine and other products. The scheme did not receive any enthusiastic support from Waimate growers, but many other interesting reasons prevented the scheme from advancing beyond the primitive production stage. Dr R. Gardner, an analytical and consulting chemist of Dunedin, who proposed the scheme, reviews all the difficulties in a letter which has been received by the Mayor of Walmate (Mr G. Dash). Dr Gardner- states that he approached the Government on July 8, 1940, and set out his reasons for believing that the manufacture of potato starch was a most suitable industry for early establishment in New Zealand. The practicability of using locally-made plant and local material for the industry had been proved by experiments. He promised co-operation whether the industry was run as a private or State enterprise. He asked for an indication of the wishes of the Government as to the basis on which such a new enterprise ought to be begun. "No such Indication of the Government’s wishes has ever been received,” Dr Gardner states. “The only answer was from an officer of the Department of Industries and Commerce who expressed his personal view that the Minister would prefer ‘a healthy commercial undertaking financed from private sources,’ but added: ’However, if you care to put up some definite scheme and Indicate what assistance you would like from the Government in giving effect to that scheme, I can assure you that what assistance is found to be possible will very willingly be given.’” Dr Gardner adds that the subsequent history of the project would show that Government action had effectually prevented development as a “healthy undertaking financed from private sources,” and no proposition put up to | the Government had received "very willing” help. As he had not been able to spend the time necessary to form a company or other organisation, he had given the facts to Mr E. T. Cox, a former Mayor of Dunedin. There had been no time to form an ordinary company, so a number of growers had put in 10/- cash for every ton of potatoes to be treated on the understanding that the money would.be the first charge on profits and that shares would be received equivalent to the cash put in. Cash from Growers

The total cash collected from growers was £lO9B, Dr Gardner wrax-s. —.... represented 2196 tons of potatoes. The management of the pool was in the hands of a syndicate consisting of Messrs E. T. Cox, A. L. S. Cassie, J. G. Somerville, G. H. Claridge and Dr Gardner himself. Messrs T. C. McLachlan and David Marshall were appointed to represent growers. The money in hand was Insufficient for a large scale plant, so a .written application was made to the Bureau of Industry for a loan of £5OOO. The urgency of the position was emphasised. “No reply was ever received from the Bureau of Industry,” Dr Gardner states in his letter. It had been learnt through Dr. D. G. McMillan that the project had been turned down. The Hon. D. G. Sullivan later stated that the proposal was turned down because the members of the syndicate were not undertakng any flnancal liability. "As we stood to make no profit out of the operations of the pool, it is difficult to see why we should have been expected to accept liability at that stage, though we were quite prepared to do so if necessary,” the letter adds “There is perhaps an element of humour in the fact that we were not told of this reason for turning the project down until we were some £l5OO in debt over the scheme I”

It is contended by Dr Gardner that the direct result of the Government's failure to finance the scheme was the total wastage of several thousand tons of potatoes. The natural reaction of growers to the failure to use the 1940 crops had been a reduction in acreage, and there would probably be a shortage of potatoes this year. Damaged and undersize potatoes could be processed. Application was made for permission to form a company to establish the industry on a permanent basis. “The reply was a blunt statement that the application was declined,” says Dr Gardner. After stating that it could not be found out why the application was declined, he goes on: “An extraordinary feature of the whole is that the Industries and Commerce Department has throughout been very active in putting us in touch with users of the proposed products.” A steady stream of Inquiries was being received both from within New Zealand and from abroad. ' “One department is actively asisting us to sell our products, another is very effectually preventing us from having any products, and no doubt a third is turning down applications for import licences on the grounds that the material can be made in New Zealand,” the letter comments. A subsidy of £6 a ton on starch produced had been offered by the Minister of Finance, but the offer was received too late, and anyway production could not be started Plant Installed

A plant was installed on the property of Mr T. C. McLachlan at Barrhill, Rakaia. The premises were not altogether suitable. A gravity system could not be used, and funds in hand did not run to a drying plant. It was considered that the plant could later be re-efected, with additions, in a more suitable building, “and that if the practibility of the scheme were demonstrated ... we should then Surely be able to obtain the necessary capital and go ahead,” Dr Gardner adds. “In this it appears that we were unduly optimistic.”

The machinery was not operating until nearly Christmas time, and with hot weather the ' potatoes had deteriorated and the quality of the starch after the first few weeks of working had been-affected in yield and quality. In spite of the difficulties, the cost of labour and plant was less than 18/- a ton of potatoes. It was quite clear that that cost could be halved if not further reduced. Some excellent starch was turned out ana was sold for £4O a ton. As the estimate of starch in potatoes was 15 per cent., the scheme could be made economic. Altogether 200 tons of potatoes were treated. The plant cost £l5OO, and wages and other costs, including the dismantling of the plant, about £6OO. Then there was the liability of £lO9B to members of the pool. Again that was

the plant and starch to be dextrinised. As the result of representations made by Mr S. G. Holland, who saw the plant in operation, the Minister of Finance offered to pay the whole subsidy on 100 tons of starch as soon as it could be produced, and requested the Commonwealth Bank of Australia to allow the syndicate a corresponding ovedraft. No definite assurance of being able to produce 100 tons of starch could be given. The syndicate haff an overdraft at the bank of £6OO on personal guarantees. Attempts were made to get responsible Ministers to see the plant working, but they were unable to come at the time. Formal application had now been made to form a company with a capital of £30,000, Dr Gardner writes. At the time of writing (April 24) the application had been lodged for six weeks and a reply was still awaited. It appeared as If the whole matter might be held up indefinitely. He desired to make it clear that no allegation of neglect was made against any Individual civil servant. His impression was that somewhere there was lack of co-ordination between Government departments. “I desire to make it clear that this statement is put out solely on my own personal Initiative and responsibility,” he concludes. MINIATURE RIFLES At the weekly shoot of the Morven Miniature Rifle Club scores were: <j. Thomas 78, J. Purdie 77, J. Campbell 77, L. Dasler 77, G. Hossack 77, T. Turner 76, H. McKenzie 76, L. Meredith 75, J. McDonald 73, E. C. Wright 71, E. Dugdale 71. Scores at the weekly shoot of the Glenavy Miniature Rifle Club were: J. McCulloch, A. Cuthbertson 80, B. Duff 78, E. Simpson 77, D. McCulloch, L. Morrison, A. McCulloch 76, H. Mountford, J. Carroll 75, A. Coumbe, J. Paul 74, R. Alexander, N. Gibson, D. Hollamby 73, T. Devlin 71, J. James 70. PERSONAL The engagement is announced of Helen Stewart, only daughter of Mrs H. A. Mills and the late Mr E. S. Mills, Waimate, and Colin Edgar, elder son of Major and Mrs O. E. Ransom, Wellington. Miss Nellie Laytham, Invercargill, has returned home after spending a holiday with her aunt, Mrs J. A. Neely, Waimate. Mrs W. H. Laytham, who has been the guest of her sisters Mrs C. A. McKay, Christchurch, and Mrs J. A. Neely, Waimate, left to-day to spend a few days with her son, Mr H. B. Laytham, Dunedin, before returning to her home in Invercargill. A remarkable record has been achieved by Mr J. Carbis who recently retired from the employ ,of Messrs Jones and Sons. Mr Carbis was employed in the same business for 52 years. He started work in the present premises in 1889, and from that date he has been employed successively by Mr P. W. S. Jones, the late Mr W. J. Dailey, and Mr R. (Dick) Dailey. For the following 22 years Mr Carbis was employed by Messrs Meyer and Jones, and from 1920 up to the present day, with the exception of two years when the firm was under the management of Messrs Green and Co., he has been in the employment of Messrs Jones and Sons. Mrs J. Cague and Miss Cague, Ashburton. are the guests of Mrs W. A. Peck, Belt Street.