N.Z. attracts Australian executives

Press, Volume CXV, Issue 33883, 1 July 1975, Page 1

N.Z. attracts Australian executives

Top executives in Australia are becoming dissatisfied with their lot and are looking to New Zealand for a different life-style, according to a management consultant.

Mr J. R. Wareham said yesterday that Australian executives were prepared to accept a $lO,OOO drop in salary to live in New Zealand. In the last year, Mr Wareham’s management-consult-ant firm, Wareham Associates, Ltd, advertised 15 New Zealand jobs in Australia, and filled every one. “We get hundreds of applications for executive positions in New Zealand, mostly from men seeking the more pleasant easy-going life over here,” he said. “The effective real income of executives in Australia in the last two years and a half has dropped, even if their salary has increased from $15,000 to $25,000 before tax,” said Mr Wareham. Executives were being hit by high inflation and tire 66 2/3 per cent marginal tax rate. Soaring private-school fees for children, the increasing cost of living, and diminishing rewards for senior management were making it difficult for executives to cope. An executive transferring from Australia to New Zealand could accept a $lO,OOO drop in salary and still maintain an equivalent social position, said Mr Wareham. “So

it is cheap for an Australian coming to New Zealand and taking a lower salary.” An increasing number of New Zealand firms are looking to Australia for top staff “New Zealand is primarily an agricultural country, and it is hard to find a man here who has been exposed to top management,” said Mr Ware ham. “It is realistic to look to a place where there i‘ more industry to find top ex ecutives.”

Fringe benefits

I The only option for an ex ’ ecutive who wanted to re main in Australia was to jon the “fringe benefit society.’ Fringe benefits included a company house or interestfree housing loan, company car, club subscription and ai’ out-of-pocket expenses, such as meals and drinks. Austra lian executives expected these benefits as of right, bu' they were under the scrutiny of the Labour Government. The manager of the Christ church branch of Wareharr Associations, Ltd (Mr P. G McDonald), said that substantially more Australian execu tives were inquiring in Christchurch about job prospects than at the corresponding time last year. Four or five were calling each month — mostly people on assignment in Christchurch.