M.P. critical of Lion change

Press, 27 January 1978, Page 2

M.P. critical of Lion change

| PA Wellington | The restructuring of Lion i Breweries capital came under j strong attack yesterday from the Opposition spokesman on ! consumer affairs, Mr R. O. I Douglas. I Lion Breweries had conisistently shown an arrogant attitude towards consumers, he said. “Now the board of directors is treating shareholders with the sort of contempt they have previously reserved for the people who buy their products,” he said.

The latest move was obviously designed to protect the position of the existing board and management structure.

“The assertion that it was necessary to ward off an unnamed overseas buyer is non l sense, because no Government would allow that to happen,” Mr Douglas said.

“I believe the Minister of Justice (Mr Thomson) should order the Commercial Affairs

Division of the Justice Department to investigate the legality of this move. If it is legal then it is clear there are loopholes in the Companies Act, which must be closed.”

Mr Douglas said he also wanted an indication from the Minister of Trade and Industry (Mr AdamsSchneider) whether the Lion board had sought clearance for its move from the Examiner of Trade Practices. “If it did not, what action does the Minister intend to take against the company?” he said.

“The move by the Lion Board is just part of a trend towards control of industry by a small managerial elite who are responsible to noone but themselves.

“It is a dangerous trend which is totally against the interests of both consumers and the people who invest their savings in the sharemarket,” Mr Douglas said.