North not always financed by South

Press, Volume CXI, Issue 32589, 24 April 1971, Page 20

North not always financed by South

(New Zealand Press Association)

DUNEDIN, April 21

South Island money does not always finance the North Island. One of New Zealand’s largest finance companies has three times as much money invested in the South Island as it has received from there for investment.

Marac Finance, Ltd, had about $6 million invested in the South Island against less

than $2 million in funds from the South Island, its managing director (Mr J. D. Rose) told a group of Dunedin business and professional men today.

Mr Rose said his company needed the recognition and support of South Island investors to play an effective part in the development of the south. He gave an assurance that southern money would not go to Auckland for the north’s further glorification.

Marac Finance is one of the three largest financing companies in New Zealand, and has $2 million invested in Otago alone.

Mr Rose said New Zealand finance companies had assumed many of the functions of European merchant banks, “despite the publicity by some newcomers, who infer that merchant banking—a lovely mysterious term—is unknown here. We are interested by the apparent sudden switch in the Government’s policy to welcome foreign merchant banks. | “I suspect that the recent dramatic drop in overseas interest rates and Eurodollar rates has been a factor in the decision. If some of the great merchant banking names do come in, some depth in sophisticated financing will be available here.”

“I see many of these people as they move through Auckland, and undoubtedly they will move cautiously, if at all, in conjunction with New Zealand partners, which might well include some of the larger finance companies,” Mr Rose said.