N.Z. TAXES SEEN AS DETERRENT

Press, Volume CIX, Issue 31923, 26 February 1969, Page 18

N.Z. TAXES SEEN AS DETERRENT

Relatively high taxes in New Zealand and one of the highest withholding taxes were now a deterrent, particularly in schemes with high investment which took a long time to come to fruition, the overseas managing director of British Insulated Calendar’s Cable, Ltd (Mr W. Fraser), suggested yesterday.

Mr Fraser was addressing the official opening of the new 51,600,000 power cable factory at Sockbum of Associated British Cables, Ltd, in which his company is a major shareholder.

“While appreciating and accepting that the introduction of foreign capital creates a number of difficulties in such matters as export, technical fees and dividends, I feel that these are matters which can be properly sorted out beween sensible people,” said Mr Fraser. “I would certainly hope) that the New Zealand Gov-i eminent will not have any thoughts along the lines being expressed in certain other countries that they will endeavour to introduced restricted voting rights on the equity held by foreign investors,” he said. Mr Fraser told the 250 manufacturers and businessmen present that they might think the analogy somewhat improper “but unless the circumstances are very exceptional, than anyone’s dollar

whether local or foreign, should be entitled to the same level of reasonable treatment.” •

The 60,000 sq. ft factory houses equipment producing cable to carry up to 11,000 volts. The chairman of directors of Associated British Cables (Mr A. T. Young) said that one of the real problems of the industry was the varying price of copper. In a short time it had varied from £432 a ton to £Bl6 a ton on the London Metal Exchange. “It is a very large factor in the cost of the finished product,” he said. Mr Young said that of the 51,600,000 for the new factory, about one-third was spent in Christchurch. Mr Young said the new plant had quite a lot of electronic control gear; the whole factory-could be run by 25 men; and some of the plant was going 24 hours a day. Guests to the official opening were welcomed by Mr J. D. Bull, a director and general manager of the Christchurch company.