Church to cut second ins. link with S.A.

Press, 10 November 1981, Page 1

Church to cut second ins. link with S.A.

The Presbyterian Church will withdraw its investments with the South British Insurance Group because of the company’s involvement in South Africa. The Church’s General Assembly yesterday voted by a two-thirds majority to instruct its trustees to prepare alternative plans of investment for the funds it has with the New Zealand South British group. The Rev. John Murray said that the decision would be consistent with the Church’s policy on apartheid. Many members of the Church were opposed to apartheid but did not think that protesting against the Springbok tour was appropriate, the Rev. R. W. McEwan told the Assembly. “Here is an establishment protest against apartheid which is both non-violent and within the law,” he said. The Rev. R. Fiest was not in favour of the withdrawal. “Just because we do not like one aspect of the company it is no reason to withdraw. If we do, we should look at the activities bf some other companies with which we invest,” he said. The : 1980 Assembly asked

both New Zealand Insurance and South British Insurance to withdraw their business and investments in South Africa. Since then N.Z.I. had sold its interests there and later became part of the new South British Group. The South African company. in which South British owned a 70 per cent interest, merged with another company. South British now owns only 25 per cent of the capital of the reorganised company and is no longer in a position of control. The directors of South British said in a letter to the Church recently that it did not want to withdraw the investments in South Africa but would keep them under review. The General Assembly also approved a "mission through investment” fund. Under the scheme, money will be invested by the Church in areas where money would be made available for housing, employment, or community projects. Because of the high social and medical costs of liquor, the General Assembly has instructed the trustees to prepare guidelines for investment, with special reference to the liquor industry.