U.S. investment in N.Z. rises

Press, Volume CXII, Issue 33066, 6 November 1972, Page 1

U.S. investment in N.Z. rises

(N.Z.P.A. Staff Correspondent) WASHINGTON, November 5. Direct American investment in New Zealand in 1971 rose by SUS2Sm —about 12} per cent —to SUS2O9m, according to statistics issued by the United States Government.

These figures, the latest available in Washington, show that United States investment in manufacturing industries soared by slsm to sll4m.

While its stake in New Zealand’s mining and smelting industry stayed at sBm, an extra sllm went into other New Zealand industries, including tourist facilities.

This additional sum brought the total United States investment in the classification “other industry” to sB7rn.

The American investors earned about s26m from their s2o9m stake in New Zealand and put sl4m back into the country. They brought back to the United States about sllm. In the manufacturing sector, reinvestment totalled

slom on earnings of sl7m, and in the “other industries” grouping 50 per cent of the sBm earnings was reinvested.

Figures on United States investment abroad this year are not available, but finance authorities in Washington believe that the money put to New Zealand has been maintained at a high level. Confidence in the New Zealand economy is evident in top banking circles, and the buoyancy of the New Zealand dollar is attractive to investors.

But the extent of American investment in New Zealand pales in comparison with that in Australia. The book value of United States investment there at the end of 1971 was up some s3oom on the comparative figure for 1970.

Earnings on this 1971 investment in Australia totalled s34om, only sl36m being reinvested.