Fishing Industry Needs Investment, Says Bank

Press, Volume CIX, Issue 32032, 5 July 1969, Page 22

Fishing Industry Needs Investment, Says Bank

The fishing industry will need new investment, skills, technical knowledge and markets before the National Development Conference export earnings target of s2sm by 1978 can be achieved, the Reserve Bank of New Zealand says.

There should be no real problem of resources, in the short run at least, particu-

larly with the phasing out of/ foreign fishing within the 12mile limit, says the bank in its latest bulletin.

“If the potential in our waters is to be exploited fully by our fishermen, more boats will be required to fish a larger area and much will have to be done in the fields of research and catching technique.

“A greater knowledge of resources will be required if our catching performance is to be increased to fulfill a wider export demand.

Capital Shortage “From an investment point of view,” the bank says, “the fishing industry has not the appeal in New Zealand that many other industries have, and new capital is hard -to obtain. '

“A survey of eight fishing companies undertaken in 1966 showed the return on shareholders’ funds to be only 7.9

per cent, against - 10,9 per cent on a sample of 105 public companies; but the recent rise in value of exports caused by increased production and devaluation may have improved the return ‘on the funds employed.”

Management Need

The bank says that the rate at which the industry can grow depends-not only upon the acquisition of additional capital, modern equipment and technical skills, but also upon sound financial management of the invested capital.

The aim of this management should be to enable fishermen and boat owners to finance their work, growth and expansion in such a way as to enable them to obtain a return on their investment comparable to that earned by other industries.

“To this end,” the bulletin says, “and for the purpose of allowing a true comparison of the profitability of units of a similar nature within the industry, an accounting system similar to that devised for farm management may be desirable.”