Property co. critical of Government

Press, 19 July 1983, Page 22

Property co. critical of Government

PA Wellington the annual report of Robt Jones Investment, Ltd, terms the present Government a "specialist administration.” The report, by the company’s chairman, Mr Bob Jones, says that the wageprice controls introduced by the “present socialist administration” were contrary to previous undertakings — “which will .surprise no-one” — and contrary to sound economics — “which is at least consistent with their other actions.”

“We are paying a price as a nation with our totally controlled economy, and the consequential contraction is producing its inevitable toll in business failure, stagnation, and unemployment. “This company’s major tenancies are foreign-owned companies. “The Government has deemed it in the national interest that we should subsidise their rentals, thereby allowing these companies greater profits for transfer abroad. “The Government has also deemed it in the national interest that we should subsidise New Zealand companies, notwithstanding those companies’ contractural obligations and readiness to pay fair market rentals. “In short the Government has decided that lessees and lessors do not know best how to conduct them for the parties,” said Mr Jones.

“I can only repeat my remarks ... that sanity will prevail.” Mr Jones said that techical difficulties arising from the change of Government in Australia continued to delay announcement of the company’s activities there. “This matter is currently at a delicate stage of negotiation.”

He said that when the company was formed, consideration was given to establishing a unit fund structure. But the idea was rejected because it was thought such a structure was unlikely to survive in relative tax (advantage) terms.

“That aside, we believe the matter will become increasingly irrelevant by our increasing ability to pay tax-free dividends.”

The company began business on September 9, last year. It is paying no dividend, but proposes an interim one in October this year.

the accounts that showed net earnings after tax to March 31 were $302,000, property revaluation amounted to $1,165,000, and an extraordinary item of capital profit amounted to $276,000.

Total net earnings after taxation were reported at $1,743,000. A total of $276,000 was transferred to realised capital gains reserve and $1,165,000 transferred to “property revaluation reserve.”

Mr J. A. Veitch, who has been appointed general manager of the Ballin Rattray Group. After the merger of Ballins Industries, Ltd, and J. Rattray and Son, Ltd, in 1982, Mr Veitch was appointed an associate director. He is at present general manager ■ of J. Rattray and Son.