Foreign Control In Industry

Press, Volume CIV, Issue 30717, 5 April 1965, Page 1

Foreign Control In Industry

"The Press” Special Service WELLINGTON, April 4. The percentage of foreign control of manufacturing is higher in New Zealand than in Australia, says the former Secretary for Industries and Commerce, Dr. W. B. Sutch, in the April issue of the ’‘New Zealand Economist and Taxpayer.” About 35 pei - cent of all New Zealand manufacturing industries and 22 per -cent of all industries are controlled by overseas investors, he said.

Changes in transport, advertising, building and constructior indicate an increase soon in the figure for industries, he says.

Dr. Sutch suggests a symposium on investment in New Zealand. Ambivalence in the national attitude to foreign investment makes policy decisions in this field difficult, he says.

Proportions

Dr. Sutch reports thr.t company profits earned in New Zealand accruing to overseasowned or controlled firms is 10 per cent for wood, cork and furniture, 15 per cent for services, wholesale and retail trade and metalworking, 60 per cent for engineering and transport equipment, and 65 per cent for miscellaneous manufacture.

Other percentages are 50 for meat and dairy products.

40 for raining, quarrying, food, drink and tobacco, 45 for leather, rubber, chemical and mineral products, and 20 for pulp, paper and printing, banking, insurance and property ownership.

Dominance

“Industry gr oupings tend to disguise what may be even greater dominance in particular industries,” says Dr. Sutch.

“If the dairy industryalmost wholly New Zealandowned—could be split from the meat group, apparent overseas control would be far greater than an already high figure of 50 per cent. “Another noteworthy figure is the 40 per cent for the food, drink and tobacco group.

“It may be wondered why a group of industries which use mainly New Zealand raw materials should be so substantially in the hands of overseas investors."