Fallback offer for Mosgiel

Press, 14 July 1980, Page 1

Fallback offer for Mosgiel

PA Dunedin The Broadbank Consortium’s proposal to save Mosgiel, Ltd, which will be discussed by the Cabinet today' involves protection of the staff savings plan. More than $128,000 of the staff’s money is tied up in the savings scheme, and it has been an important element in negotiations. The savings are now secure, since the Bank of New Zealand has agreed to underwrite the savings account in the event of the

Broadbank proposal’s failing. Clarifying the position, Mr A. Anderson, one of the receivers, said that in the event of failure by Broadbank “the bank would then provide to transfer such accounts to the Bank of New Zealand savings accounts.” This would be done as part of the over-all redundancy arrangements that would then be implemented, Mr Anderson said. He .said the bank’s offer only held as a fallback in the event of the receivers having to phase down Mosgiel’s activities. There was no question of the bank’s making an immediate transfer at this stage. The Broadbank Consortium includes the Development Finance Corporation. Chase-N.B.A. and associates. The proposal, which was formed by debentureholders, has been with the Minister of Trade and Industries (Mr AdamsSchneider) for several days.

The national secretary of the Woollen Mills Union, Mr L. Armitage, is confident the Broadbank package will succeed. The scheme involves retention of about as many workers as under the failed Alliance Textiles offer. If the Broadbank proposal does fail, however, a further party made up of J. Baron and Son Pty. Ltd, of Melbourne, and Norsewear Industries has indicated an interest in some of the plant, particularly the knitting division. Executives of the combined unions involved with the Mosgiel collapse met for two hours vesterday afternoon, and afterwards the Federation of Labour negotiator. Mr J. Slater, said representatives of the unions would report back to their members. Mr Slater said the unions would meet the >eceivers again today. The next move by the unions would depend on the Cabinet decision due today.