Overseas Capital In N.Z. Fishing

Press, Volume CVII, Issue 31381, 29 May 1967, Page 12

Overseas Capital In N.Z. Fishing

Sir Peter Phipps, chairman of directors of New Zealand Sea Products-, Ltd, says his company views “ with very considerable concern the danger that »P°^ en^’ benefits of fish—one of New Zealand’s few natural resources—may be virtually given away for a short-term gain. ” In this obvious reference to his company’s potential rival, Taimoana Fishpries, Ltd, Sir Peter Phipps seems unduly concerned by the implications of the Japanese shareholding in the latter company. The minority Japanese holding will ensure technical services and access to the Japanese market which might not otherwise have been forthcoming.

The tardiness of the New Zealand fishing industry in exploiting even the immediate and obvious possibilities of our fishing grounds does not encourage confidence in its capacity to pursue vigorously the “ potential benefits ” of which Sir Peter Phipps spoke. New Zealand has recently extended its fishing limit to 12 miles, without any prospect of the present fishing fleet being able to gather the harvest from this huge area of water. Sir Peter Phipps would, presumably, exclude from these waters not only foreign-owned ships .but also fleets owned by New Zealand interests in partnership with overseas shareholders. Apart from the difficulty and expense of policing these waters, is such a policy justifiable? It might be morally defensible if New Zealand were able and willing to expand its own fishing fleet to fish its waters adequately. Even then, a good case could be made for permitting, even encouraging foreign capital into the industry.

Capital is New Zealand's scarcest factor of production. Capital from abroad, particularly at times like the present, provides a welcome addition to New Zealand s scarce funds, enabling the country’s natural resources to be developed sooner than would otherwise be possible. If, in addition, foreign capital provides technical knowledge and access to overseas markets, the advantages of encouraging foreign capital are obvious. Talk of retaining in New Zealand hands full ownership and control of the resources of New Zealand fishing waters is not only jingoism but bad economics.