COMMERCIAL Export incentives for Tasman

Press, Volume CXII, Issue 32874, 24 March 1972, Page 15

COMMERCIAL Export incentives for Tasman

(New Zealand Press Association!

AUCKLAND, March 23.

The Tasman Pulp and Paper Company, Ltd, would be greatly assisted in the marketing of the additional tonnage from the third newsprint machine by a recent decision of the Government to include newsprint in the taxation incentive scheme for exports, the chairman (Mr J. C. Fletcher) told the annual meeting.

Finance for the machine has been arranged and an order placed. The total cost of Tasman’s expansion programme in pulp and newsprint is sBBm. Mr Fletcher announced that the second s6m debenture issue would open about the middle of this year. It will again be underwritten by Daysh, Renouf and Company, and the New Zealand United Corporation, Ltd. Mr Fletcher said that the Australian Government’s decision to give New Zealand softwood pulp a preferred position in the Australian market would reinforce the company's already wellestablished position as a major supplier to that country. The directors’ decision to proceed with the third newsprint machine was based on the belief that any outstanding matters under the Free Trade Agreement would be satisfactorily resolved—as in the case of pulp. Negotiations were continuing at government level, Mr Fletcher said. Commenting on the year’s

result, he said that it was disappointing that the record output, matched by a fully sold marketing position, had not been accompanied—because of higher costs—by a commensurate increase in profit. Mr Fletcher mentioned freight increases of 30 per cent to Australia and 45 per cent to the South Island.