Sea Prods "Has Not Kept To Conditions’

Press, Volume CVIII, Issue 31782, 12 September 1968, Page 19

Sea Prods "Has Not Kept To Conditions’

(New Zealand Press Association) WELLINGTON, September 11. Conditions laid down by the Government in granting N.Z. Sea Products Export, Ltd, limited financial assistance had not yet been complied with by the company, the Wholesale Fish Merchants’ Association claimed today.

The association’s president (Mr R. S. Morris) said in a statement that the conditions included the writing-down of the nominal value of shares and that the company ask shareholders to subscribe substantial additional capital. The Government offered to cover the company’s cash losses up to $60,000 from July 1 to September 30. No Reference Mr Morris said the agenda for a special meeting of the company to be held on September 20 did not “significantly include” any reference to writing down of capital, in spite of the Government's assurance to the association that it would be considered as a specific item.

“That this information has not been made known is viewed with extreme concern by this association, because its effect on the investing public could seriously jeopardise future investment in the New Zealand fishing industry.” said Mr Morris. If the Nelson venture had been successful, the association’s members would have no grounds for concern, he said. Concern Entitled “However, as the company has made substantial losses through uneconomic operations, and has seriously disrupted the traditional export markets to the detriment of

all members of the association, we feel we are entitled to be concerned,” Mr Morris said.