GENERAL MANAGER’S NEW YEAR MESSAGE
A great deal has been said during the past twelve months about the need to introduce measures to stabilise industrial relations in the freezing industry. We welcome any discussion which could lead to a solution to the problems which have beset our industry over the years.
Worker participation is the most quoted principle as one means of solving our problems and this has been suggested in a variety of forms, with perhaps the major suggestion centring round joint management and worker councils meeting regularly for a constant review of policies and discussions to solve issues before they develop into major problems. The W. & R. Fletcher group subscribes to this concept of maintaining a constant flow of information to and from staff, with informal liaisons being carried out for some time between management and staff.
Our industry is a unique one principally because of its seasonal nature and the need to handle live stock as it is ready and convert it into a saleable product for a regular 52 weeks a year marketing operation overseas. Unfortunately at this stage we cannot foresee any significant improvement in the seasonal pattern by different breeding or pasture management to maintain a year round flow of stock which is the most desirable means of stabilising the industry. So it appears that our immediate opportunities centre round dialogue. This is something which perhaps has been sadly lacking in the industry in the past but it is important that both management and workers representatives regard and participate in such councils in the right atmosphere. Their prime aim is for discussion and an understanding of objectives and the problems which face the industry and not detailed industrial matters which are normally and properly handled by the industrial office.
You will note that I refer to the councils as being made up of management and workers and not as two sides. It is important that we regard any forms as a joint industry effort as hopefully we are both on the same side. If we can develop this philosophy the industry, and consequently everybody involved with it, must benefit.
The past year has been a trying one for the industry as we have had to meet deadlines for the new hygiene requirements set by our overseas markets at a great cost to the industry, and in addition have been beset by many other rising costs. At the same time, an uncertain period on the UK lamb market did not augur well for the industry, upon which the New Zealand economy depends. However, the latter part of the year saw the situation change with large meat sales to the Soviet Union and the Middle East. Unfortunately the financial results were disappointing at a time when the industry is faced with increased capital expenditure to meet new requirements in processing.
It appears that New Zealand’s markets are continually expanding and hopefully a more consistent arrangement with the Japanese for beef, and growing needs for imports from other countries who have seen a depletion in local stock numbers, point to an encouraging year for New Zealand meat exports.
I would like to thank the entire staff of W. & R. Fletcher group of companies for their cooperation and efforts during the past year and wish them and all of our clients throughout New Zealand a happy and prosperous year.
M Hinchliff
N.Z. MUST KEEP PRESSURE ON JAPAN
The assistant general manager of W. & R. Fletcher (N.Z.) Ltd., Mr Peter Johnston, said that while the recent Japan-New Zealand Businessmen’s conference in Nelson had led to greater understanding between meat traders of both countries over New Zealand’s demands for more equitable trading agreements, continued pressure was needed from the New Zealand Government to reach agreement.
Mr Johnston, who was the official representative of the New Zealand Meat Exporters Council, said the emphasis that Japan placed on the food talks was evident by the constant presence of the senior Japanese councillor, Mr Shigeo Nagano at all of the sub-committee’s sessions.
Apart from the valuable exchange of views, the meat sub-committee agreed to continue dialogue between conferences to exchange information and review the trading situation regularly.
Mr Johnston praised the stance taken by the Prime Minister, Mr Muldoon, and the Minister of Overseas Trade, Mr Talboys, with the Japanese Government to try to secure a larger quota allocation of New Zealand beef imports.
The situation in Japan concerning meat imports and quota allocations was a political rather than a trading problem and this would take time to solve. With fewer resrtictions [restrictions] it was hoped in the future the beef trade could emulate the sheepmeats trade which was being conducted under satisfactory terms for New Zealand.
Mr Johnston told the Japanese delegates that in the short term New Zealand would like to see the announcement of annual quotas as opposed to the present short term notices which were unfavourable to New Zealand. In addition, Japan should withdraw its insistence for frozen beef based on Australian specifications and some consideration should be given to yield and quality in tenders, not purely to price as was the case today.
He said these points were not outside the capabilities of the present authorities and failure to reach some concession would mean that New Zealand must at times dispose of its product in other markets in the absence of any opportunity for planned supply. This meant that Japan at times would not get competitive New Zealand tenders, and it could also lead to a situation where New Zealand would develop other traditional markets at the expense of Japan.
Mr Johnston said that Japan’s dependence on costly imported food grains had raised the cost of local beef productions to a stage where it could become unsupportable and could lead to consumer pressure which would necessitate a change in policy.
New Zealand suggested that if the Japanese rice for beef was lowered from the present high level, demand would increase substantially to the benefit of the Japanese farmer. A possible solution was a subsidy payment direct to the Japanese farmer if imports were increased while still maintaining the present tariff.
New Zealand fully understood and sympathised with the concern of Japanese producers and did not want to harm the local producer and processor, but believed that increased consumption could only strengthen their position.
Mr Johnston added that he was impressed by the combined position taken by the New Zealand delegation, which comprised representatives of Federated Farmers, the Meat Board and processors and exporters, in putting over New Zealand’s views.
The stance taken by Mr Muldoon and Mr Talboys for better access of New Zealand’s primary products into Japan has also received favourable reaction in Japan.
Weddel International’s representative in Japan, Mr Michael de Lacey, said that Mr Talboys made a generally good impression with the Japanese during his visit and the opinion in Tokyo was that he handled his difficult task extremely well.
Mr de Lacey said it was pleasing to see how much coverage the Japanese press gave to the delegation led by Mr Talboys, most of which came out showing a great deal of sympathy towards New Zealand.
“New Zealand must appreciate that the negotiations to increase beef and dairy imports will not be settled overnight. It is a long term process.
“Mr Talboys visit will be even more successful if it is followed up with others led by senior officials.
“The pressure must be maintained,” Mr de Lacey said.
Photo caption – Mr Peter Johnston talking to Mr Genjiro Abe, another delegate at the Japan-New Zealand Businessmen delegates at one of the conference’s social functions. Mr Abe, the managing director of Kanematsu-Gosho (N.Z.) Ltd, a large Japan based trading company, was also a member of the conference’s meat subcommittee.
RETURNING TO BRITAIN
The site manager for the Tomoana upgrading programme, Mr W. G. (Jock) Chalmers, has returned to Britain and his position has been taken over by the Tomoana resident engineer, Mr Andy Copland.
Mr Chalmers, formerly the Vestey Organisation’s chief engineer, had been in New Zealand for more than 18 months.
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