Japanese Aid “Essential”

Press, Volume CVII, Issue 31380, 27 May 1967, Page 14

Japanese Aid “Essential”

The Japanese market for fish would never be entered by New Zealand until there was full Japanese co-operation, said the chairman of directors of Taimoana Fisheries, Ltd., (Mr E. B. E. Taylor yesterday.

He had been asked to comment on an Auckland newspaper report that the Cabinet was expected to agree soon on a formula for joint fishing ventures by overseas and local firms which would set a limit of about 20 per cent of equity capital investment from abroad. Taimoana Fisheries, Ltd., and the Japanese Taiyo Company plan a joint venture under which Taiyo would provide a 300-ton trawler to operate from Lyttelton. “The reports have implied that the main purpose of accepting foreign capital is to obtain the necessary technical knowledge from overseas Interests,” Mr Taylor said.

“Everyone will agree that the technical knowledge is important at the present stage of development of the New Zealand fishing industry. But more important than learning how to catch fish is for New Zealanders to learn how to sell it,” Mr Taylor said.

“Our one traditional market has to date been Australia. New breakthroughs must be made. Japan represents one of the most important—if not the most importantprospective market But this market will never be entered until we have full Japanese co-operation.

“If this important object can only be achieved by a 48 per cent share of foreign investment for our company, then we would be very shortsighted to insist on the proposed limit of 20 per cent and thus lose our venture,” Mr Taylor said. Earlier Statement “I was surprised and disappointed to read the statement by the former Chief of Naval Staff and present chair-

man of directors of the New Zealand Sea Products Export, Ltd.,” said Mr Taylor in an earlier statement.

He was commenting on a statement made by Sir Peter Phipps on Wednesday when he said he objected to overseas interest being allowed to have interests in New Zealand fishing ventures. . “Sir Peter Phipps appears to be referring to a proposed fishing venture in which I am personally interested,” Mr Taylor said. “If he had bothered to consult me and learn the true facts of our company proposals, he would

never have made the irresponsible inferences he did.” “Our company will not give away the potential benefits of fish for short-term gain. We intend to obtain the maximum returns from the exploitation of ’our precious heritage,' fish, and so carry out what Sir Peter Phipps quotes as our moral justification for the proposed 12mile fishing limit.

“We will harvest our marine resources, as Sir Peter Phipps insists we must, and will in addition sell it on the Japanese market, which we have never been able to enter before, at profitable prices and not leave it piled up unsaleable in Australian cool stores as Sir Peter Phipps’s company is doing at present,” he said.

“We need no Government financial assistance, or the use of overseas funds, but only Government permission to try out a private enterprise venture, and we will stand on our own feet and not squeal.

“Sir Peter Phipps advocates overseas loans (inter alia) as a source for funds for Government research projects and accepts part or even total ownership by overseas capital in industries in New Zealand other than fishing, the one in

which he is interested and in which he perhaps fears competition. “Our proposals are to expand our company to one of £50,000 capital—s2 per cent New Zealand owned and 48 per cent owned by the Talyo Fishery Company, which ensures their co-operation and our entry into a market hitherto closed to us. We will purchase a proven 300-ton trawler, refitted for New Zealand crew conditions, delivered et Lyttelton for approximately £BO,OOO. One-quarter is to be paid on delivery, which payment will be covered by the Japanese capital subscription (and hence no overseas funds are needed) and one-quarter for each of the three consecutive years. We will catch, pack and freeze on board for direct consignment to Japan on our return to port. Technical Japanese knowledge is available to us for all facets of the venture, a knowledge, which unlike the Norwegian, already has a background of familiarity with New Zealand waters,” Mr Taylor continued.

- “Exacting” Market “The Japanese market is an exacting one, and entry depends on the highest quality of fish and strong fishing interests co-operating in Japan on the marketing side. Our association with the Talyo Fishing Company and its capital assistance assure us of the

entry New Zealand has for so long been searching.

“If, as we believe, we can earn in the first 12 months £lOO,OOO, the small venture deserves respect and backing, and if this target is achieved the future for substantial increases in overseas funds will be of real benefit to New Zealand.

“New Zealand Sea Products Export, Ltd., now has onr story, and maybe will not be completely opposed to our suggestions.” “Views With Minister” The Minister of Marine (Mr Scott) had asked for and had received the views of the New Zealand Fishing Industry Board on joint fishing ventures involved overseas and New Zealand capital, Mid the board’s chairman (Mr I. T. Cook) in Christchurch yesterday. “We have given our views on the principles, and rather feel at this stage we cannot state what they are,” he Mid. Pressed for some indication, Mr Cook Mid some questions Involved might be in the hands of Government departments.

"When the report is released we want all the points published, and not just some of them,” he added.