Aid For Sea Products

Press, Volume CVIII, Issue 31728, 11 July 1968, Page 1

Aid For Sea Products

(From Our Own Reporter) WELLINGTON, July 10. The Government has agreed to underwrite the overdraft of New Zealand Sea Products Exports, Ltd, of Nelson, for a limited period, subject to certain guarantees by the company. This has been approved by the Cabinet and by the Government caucus as being the best that can be done to assist the company to become

established and to develop the fishing industry. The assistance is dependent on the company’s ability to get its finances in order, and to bring its operations into a viable state. Evidence which has been examined by Ministers suggests that this can be done if the company cuts unprofitable research and concentrates on proved fishing areas. The company has been trying to improve its operations since its last balance sheet showed a loss of $190,000. There is some indication that the company’s problems have been increased by an unexplained movement of fish from the sea bottom into mid-water.

In a recent Interview, the chairman (Sir Peter Phipps) said that the volume of fish being caught had dropped to about 120 boxes daily—about half the quantity which was being caught at this time last year. “I am sure we can break even, if we can increase our catching rates to normal,” Sir Peter Phipps said. Other points recommended by the Government are believed to concern other companies. It was suggested by one informant that amalgation or specialisation among companies has been recommended to reduce overhead and improve the general efficiency of fishing fleets.