Investment From Overseas Desired

Press, Volume CVIII, Issue 31750, 6 August 1968, Page 18

Investment From Overseas Desired

Encouragement for the Investment of overseas capital in New Zealand was necessary and desirable if a satisfactory rate of economic growth was to be achieved, said Mr Holland. The greatest incentives should be given to capital directed into export-potential industries and Import substitution industries. Others where overseas capital should be encouraged were Industries which relied on research and special knowledge, industries with a high capital establishment cost, industries which would make good use of N6w Zealand’s raw materials and labour, and industries where joint overseas and New Zealand control were possible. Mr Holland Said that the high rate of company taxation in New Zealand militated against investment from overseas. The Ross Committee report on taxation had recommended that tax should not be higher than in the country of origin, and this had been followed in the case of the Japanese investment in the Comalco project It was important to reduce

Without the investment of overseas capital New Zealanders would have had to make more savings to achieve the same standard of living, said the member of Parliament for Fendalton, Mr E. S. F. Holland, in a talk to the University National Club conference at Ham.

the rate of company taxation, said Mr Holland, and also that the country's economy should be reasonably stable. “I don’t fear overseas investment,” he said. “I welcome it because of its stabilising effect on the economy and its boosting effect on our standard of living. Of course it is necessary that some control be exerted so that they fit into our general pattern of economic growth.” He said that mineral development was one area in which overseas investment should be particularly encouraged. New Zealand could not afford it on its own.