Investment Policy Sought

Press, Volume CI, Issue 29798, 14 April 1962, Page 12

Investment Policy Sought

(xVJi. Press Association) NEW PLYMOUTH, April 13. Today no-one could invest in New Zealand with confidence without first going to the Government for assurances on such

points as sending back dividends and capital, said Mr J. M. Tocker (Canterbury) at the Associated Chambers of Commerce conference in

New Plymouth today.

Mr Tocker was moving a remit “that the Government be asked to establish and publicise a code for the investment of overseas capital in New Zealand.”

The remit was amendec by Mr T. M. N. Rodgers (Palmerston North) to read - “That the Government be asked to give publicity both overseas and in New Zealand to its policy relating to the investment of overseas capital in New Zealand.”

This was carried, "Surely there should be a public and widely known

code of requirements that apply to all cases so that people would unow their position in all cases without having to go to tne Government every time, Mr Tocker said.

The Nelson cotton mill agreement provided a prima facie case for a set of rules to govern overseas investment in New Zealand, Mr Tocker said. But was there a real need?

In three recent agreements —the proposed cotton mill. New Zealand Refining, and Consolidated Zinc—- £ 125,000,000 investment was involved. ’

“Should we leave it entirely to the Government—which means largely civil servants—to negotiate with big business from overseas?” Mr Tocker asked

“Would not a better resuit be achieved if the Government was guided by a set of rules formed with the approval or at least the help of the commercial community in New Zealand? The experience of leaders of commerce is valuable and should be used foi this purpose ” Mr Tocker said the code should cover three main divisions:

(1) What kind of investment do we want, in what fields

of industry and so on, and what kind of control should we accept? (2) Could it be 100 per cent, overseas, half retained in New Zealand or varying from one industry to another? .(3) Rights of New Zealand people—other firms now operating, Government and consumers. Rights ar.d duties of overseas investors —dividend and capital repayments, temporary or permanent protection from imports by tariffs or controls and so on. In the past there had been no public statement of Government policy on the investment of overseas capital. said Mr Tocker There had been too much uncertainty among likely investors and their New Zealand advisers.