P.P.C. wants better return

Press, 2 December 1978, Page 16

P.P.C. wants better return

The directors of Printing and Packaging Corporation, Ltd, are concerned at the inadequate return on shareholders funds which, was only 7.3 per cent, and they propose to intensify the policies of rationalising the group’s activities to obtain a much higher degree of ( efficiency, said the chairman (Mr W. B Barnes) at the annual meeting. ‘These efforts however! will be inhibited unless the Government can create an atmosphere in which private enterprise can flourish. ‘“The stock valuation ad-1 justment for last year vas merely an expedient, and more permanent solutions to the great problems facing most commercial and indus-l trial undertakings must bei found.” he said.

“One of the most pressing problems to be resolved will be to hold the inflationary pressures that have beset us for far too long; and the cost of doing business is reaching

a level where it is completely untenable. “There must be a final solution to the endless negotiations which will raise salaries and wages without a commensurate lift in production.

“It should be a basic policy of the in-coming Government to ensure that private enterprise is given the opportunities denied to it during the past few- years. “It must also promote conditions which will allow greater participation by the investing public in equity capital.” said Mr Barnes. “The unfairness of double taxation on company profits first from a company, and again from a company’s shareholders on dividends received needs amendment. “The principal of double taxation cannot be condoned. The Government should seek every way in which it can boost production, both for the domestic market and for export.

“As an example, the Government should give encouragement and stimulus to the New Zealand book printing industry.

“This company, amongst others, has the facilities and could provide employment for many competent and gifted people, if the industry could receive the same sort of incentives as exist in other countries.” Mr Barnes said.

Since June 30 group sales are about 14 per cent ahead. It would appear that the present buoyancy could well continue into the new year, but the company’s perform-

ance like many other companies will depend very’ largely on the speed and expertise which the Governmen'. can apply to stimulating the economy, and reducing inflation. Mr Barnes said, A final dividend of 84c a share on ordinary shares, of which 4)c was payable from revenue, and 4c from capital .eserves was approved by the meeting.

Mr L. G. Davison resigned as a director and tributes were paid bv Mr Barnes and the deputy chairman. Mr I R. Milne. The board had de cided not to seek a new director to fill this vacancy a the present time.

Mr B. H. Smith and Mr H. S. J. Tilly, retiring by rotation. were re-elected to the board.