Glass Combine Allowed 12½% On Import Price

Press, Volume CII, Issue 30143, 29 May 1963, Page 16

Glass Combine Allowed 12½% On Import Price

(New Zealand Press Association)

WELLINGTON, May 28.

The Minister of Finance (Mr Lake) said today it had been agreed that the A.C.1.-Pilkington combine be allowed to charge prices for glass up to 12) per cent, more than imported glass prices until they were able to bring the industry to a point of efficiency where it could compete with imported glass prices.

Mr Lake was replying to a question after last night’s announcement that the McKendrick Glass Company had been sold to Australian Consolidated Industries, Ltd, and Pilkington Bros., Ltd., in association, for £380,000 cash Asked why permission had been granted to the combine and not to the McKendrick Glass Company, Mr Lake said: "McKendricks had an agreement which they were obliged to observe. In spite of this every consideration had been shown by the Government and traders to that company \ 'The new owners entered ihto a fresh arrangement with the Government and the receiver.” Mi Lake said in reply to another question that he could not yet give an estimate or th.e funds put into the venture by the Government Asked if it-were more than the £BO,OOO originally guaranteed by the Government last September, he agreed that it was much more, “The Government has guaranteed funds to keep the works in operation and the works have been losing heavily.” In reply to a supplementary

question, he said that most of the amount would be covered by the sale price. Mr Lake said A.C.1.-Pilk-ington had not revised its tender "The two companies, with the agreement of the Government, made an offer to the receiver which was accepted.” Questioned on the statement that the A.C.1.-Pilking-ton offer was "more favourable” than the Pittsburg tender other than that the price was higher, Mr Lake said he would not disclose terms of unsuccessful tenders. The Whangarei Harbour Board is agreeable to the lease of the glassworks land and building being assigned to A.C.I and Pilkingtons, and these companies have acknowledged a covenant in the lease requiring them to carry on the works as a glass-

works during the whole term of the lease. The chairman of the Whangarei Harbour Board (Mr R. K. Trimmer) said this today. * The board owns the lajid and buildings. The lease is for 25 years’ original term with a right of renewal in perpetuity: Mr Trimmer said all board members regretted that the shareholders and unsecured creditors of the McKendrick Glass Manufacturing Company would be heavy losers The Whangarei Harbour Board had suffered no loss “The glass industry is a natural industry for Whangarei and is in fact one of New Zealand’s primary industries in a sense that practically all of the raw materials are found within this country.” he said.