Capital Works Overseas Finance For Local Bodies

Press, Volume CII, Issue 30127, 10 May 1963, Page 12

Capital Works Overseas Finance For Local Bodies

(New Zealand Press Association)

AUCKLAND, May 9.

If the Government would relax its restriction on the use of overseas capital, there could be up to £4O million available for major development works in Auckland, according to the Mayor (Mr D. M. Robinson).

Mr Robinson returned today from a month’s tour during which he discussed investment prospects in New Zealand with London and United States concerns. At least four international companies were interested in a scheme for the wholesale redevelopment of 100 acres in the Freeman’s Bay reclamation area, said Mr Robinson The estimated cost of this proposal is understood to be £2O million. One of the firms, Londonbased, is sending representatives to Auckland “in the next week” for a detailed investigation which will involve talks with the Government. Mr Robinson said the overseas interests he approached were also interested in the construction of six more parking buildings tentatively planned by the City Council

“I also discussed the civic administration building project.” said Mr Robinson, “and received two very definite rffers which. I am sure, would be acceptable to the council but again subject to Govern ment approval."

Mr Robinson said finance to/ motorways construction was also available overseas if the Government was prepared to amend the legislation to allow the National Roads Board to raise a loan. London, New York, and Chicago interests were prepared to invest in other New Zealand cities besides Auckland, said Mr Robinson. Al-

though they considered the interest return at 5i per cent, was a little low. it was not the determining factor, and they took into account other more favourable factors “The freedom with which they can bring in and take out their capital will be the deciding factor.” said Mr Robinson.

“The question is now one of Government policy, and with a little liberalisation of that policy probably the money is available overseas for urgent development in the main centres.”