Transport Bids Legal

Press, Volume CIV, Issue 30779, 17 June 1965, Page 3

Transport Bids Legal

(N.Z. Press Association) WELLINGTON. June 16. There was no evidence of undue overseas control in the road transport industry, the Minister of Finance (Mr Lake) said in Parliament today.

Mr W. A. Sheat (Govt., Egmont) had asked the Minister if he was satisfied that present take-over bids in the industry were legal and did not represent undesirable monopolies or undue overseas control.

The take-over bids, Mr Lake replied, complied with requirements of the Companies Amendment Act, 1963, and the Overseas Takeovers Regulations, 1964.

I “Current overseas participation in the New Zealand transport industry is in the form of mergers rather than take-overs,” Mr Lake said. “Overseas companies are merging with New Zealand interests, and there is no evidence of undue overseas control.”

The Minister said the trend to amalgamation had been apparent for some time and

domestic mergers had taken place or were in train before the entry of any overseas operators. “There is adequate competition among local transport companies and the current trend to amalgamation is a natural development in an industry which plays a vital role in the economy,” Mr Lake said. “The public should benefit from quicker and better service.”

In reply to a supplementary question, the Minister said Allied Freightways, a Mel-bourne-based company, had the right to take up to 51 per cent of the capital, but did not have this amount of capital now. Because Allied Freightways was an overseas company, any further take-overs it negotiated in New Zealand would be subject to the take-over regulations, Mr Lake added.