N.Z. Loss On Investment
(N.Z.P.A. Staff Correspondent)
LONDON, May 14.
British firms took more money out of New Zealand than they put in during 1967. This is clear from Board of Trade details on overseas investment and earnings on it.
In New Zealand’s case withdrawals exceeded investment by £2.4m.
Out of 148 concerns covered by the board’s survey, 103 had a gross investment of £s.lm while 45 had a gross “disinvestment” of £7.5m.
This was probably the worst year for British investment in at least a decade. In 1961 net investment in New Zealand was £6.lm. The next year it had risen to £Bm, in 1963 it dropped to £4.3m, in 1964 it rose to £6.3m, in 1965 it leapt to £10.7m and by 1966 it had settled to £7.5m.
The figures were reached after a survey of firms with interests overseas. They cover only investment by companies in branches, subsidiaries and associates. They do not cover other investment in stocks and shares of companies or in the bonds or other issues of public authorities. Also not covered are oil companies, public sector investment or the inward investment or earnings of insurance companies.
In 1967 British vehicle and shipbuilding firms had a net investment of £lOO,OOO and distribution firms had £l.3m. Electrical and mechanical engineering firms had a net disinvestment of £lOO,OOO, and “other manufacturing” had a disinvestment of £900,000. The Board of Trade said that New Zealand was the only exception to a general increase in earnings on investments in the developed countries of the sterling area. Net earnings in New Zealand in 1967 were £9.11m compared with £11.5m in 1966. In 1964 investments earned £12.3m. Other countries which did
better than New Zealand In 1967 included India, the Irish Republic and Malaysia. The best earnings from New Zealand operations in 1967 came from the manufacturing sector, with £4.2m. Vehicles and shipbuilding produced £300,000 and electrical and mechanical engineering £200,000. Distribution firms earned £l.lm.
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Bibliographic details
Press, Volume CIX, Issue 31988, 15 May 1969, Page 24
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325N.Z. Loss On Investment Press, Volume CIX, Issue 31988, 15 May 1969, Page 24
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