P AND O STATEMENT T.N.T. take-over or U.S.S. off market

Press, Volume CXI, Issue 32524, 6 February 1971, Page 1

P AND O STATEMENT T.N.T. take-over or U.S.S. off market

(New Zealand Press Association) WELLINGTON, February 5. The British shipping line P and O said tonight that if the New Zealand Government did not consent to a take-over of the Union Steam Ship Company by the Australian firm of Thomas Nationwide Transport, the company would not remain on the market.

The sale of the company is subject to approval by the New Zealand, Australian and British governments. The shipping line announced yesterday that it had agreed to sell the whole of the ordinary share capital of Union Steam to the Australian firm. The chairman of P and O (Australia) Pty, Ltd (Mr R. T. M. Rose) tonight said an agreement had been reached with a buyer and the matter was now with the Government “If the Government’s consent is not forthcoming for the take-over it is not P and O’s intention that Union Steam should remain on the market and be hawked around,” he said. MINISTER’S HINT Earlier today the Minister of Transport (Mr Gordon) hinted that the shipping line’s management might be asked to come to New Zealand to discuss the reorganisation of the company with additional New Zealand interests. T.N.T. has proposed a joint Australian-New Zealand ownership of Union Steam, with the company reorganised into three divisions to handle New Zealand coastal, Tasman, and Australian coastal shipping. It is believed that T.N.T. might hold more than 50 per cent of the equity overall.

Mr Gordon was asked whether there had been any indication from the British line that if the Government did not approve the bid, Union might not any longer be on the market

He repied: “There has been the implication that this might be the position, but the Government will certainly be discussing this with Sir Donald Anderson (chairman of P arid O, London) if necessary.” CONTINUITY After meeting Mr Rose this morning, Mr Gordon said the Government’s major concern was to ensure continuity to both coastal and island services particularly the latter, which were essential to any expansion of trade. He said the Government had had no preliminary discussions with T-N.T. about a

possible request for subsidies to maintain “uneconomic” services—a matter referred to last night by a New Zealand director of the Australian firm, Mr J. B. Horrocks. Mr Gordon said the information supplied to the Government so far about the bid to no way tied its hands. If the management methods or any proposed changes in the economic structure of the company were going to be against New Zealand’s interests, then the Government would dbviously call for a review of the situation, Mr Gordon said. The managing director of T.N.T. (Mr P. Abeles), is due in Wellington late next week for talks with the Government. RIVAL HOPES Next Wednesday Government Ministers are expected to meet Mr R. A. Owens, of Tauranga, who heads a rival group attempting to make a take-over bid.

the Government still had an open mind on the issue and was prepared to examine the New Zealand consortium’s proposal before the February 15 deadline. It is reported from London that Sir Donald Anderson has said he would be prepared to do everything possible “to help the New Zealand Government make the right decision on the sale of the Union Company.” SEAMEN’S VIEW Support for a New Zealand-owned shipping company was given today by the Federal secretary of the Australian Seamen’s Union (Mr E. V. Elliott) after he had addressed a meeting of the Auckland branch of the New Zealand Seamen’s Union. A joint statement was made today by Mr Elliott and the president of the New Zealand union (Mr W. Martin). They said that the situation emphasised the responsibility of the Government to inaugurate a national shipping line.

“I am confident that sufficient money can be found in New Zealand to pull this off,” said Mr Owens, the chairman of directors-of the Seatrans group of companies, to Tauranga today. Mr Owens said he had been assured by Mr Gordon that