PUBLIC NOT CONVINCED

Press, Volume CXVI, Issue 34132, 20 April 1976, Page 20

PUBLIC NOT CONVINCED

Need for profit not grasped f.x Z Pre*s .Assoctarton> WELLINGTON The New Zealand public was not yet convinced that a business must earn an adequate profit so that it cou'd refurbish its plant, and its stock-in-trade as well as provide a reasonable return to investors, the chairman of Dunlop New Zealand. Ltd (Mr J. E. S. Hammond) said at the annual meeting. It is alarming to the Dunlop management, and .it ought to alarm shareholders, and employees, and the Gov ernment, that net profits last year were little i ore than the extra amount necessary to refinance stocks, he said If a business did not earn an adequate surplus, it could not be expected to play an effective role in the community in improving the country’s productivity, and in providing jobs. Until this is more widely accepted it is probable that changes to accounting conventions and to tax and price control laws will not be made. Mr Hammond said As announced, the net profit for the year to December 31 fell 15 per cent to $1,052,000. but the company is to pay an increased final dividend of 10 per cent, making 14 per cent for the year (14c a share) which is