Business leaders shell out to help new CDC

Press, 13 April 1984, Page 13

Business leaders shell out to help new CDC

Canterbury business leaders are taking out their cheque-books to help the Canterbury Development Corporation begin its work. The directors of the corporation, and the chief executive, Mr Douglas Kerr, are canvassing 900 companies seeking their help for the corporation, set up to increase long-term employment in Canterbury. They began on Monday, and by yesterday had raised $36,700. The givers were: the Canterbury Savings Bank, $10,000; the Man Can Foundation (of the Manufacturers’ Association), $10,000; A. M. Satterthwaite and Company, Ltd, $1000; the

Ellesmere County Council, $3500; UDC Finance, Ltd (local branch), $100; Duncan Cotterill. and Company, $1000; the Bank of New Zealand, $10,000; Burbery Finance, Ltd, $5OO. Businesses and organisations have also given the corporation $35,000 worth of services free. The CSB has provided a tenth-floor office in its new High Street building for 10c a year; other firms have provided accounting and legal services at no charge; and photographs, art work, and printing of the corporation’s brochure were provided free. At a news conference yesterday (arranged free by Project Public Relations, Ltd), Mr Kerr said that the corporation had received 27 applications for help. These included two for projects in agriculture; three in high technology; seven in horticulture; five in tourism; and seven of a broad small-

business type. The corporation was started with a grant of $500,000 from the Christchurch City Council. It is seeking to raise SIM. First businesses are being approached; later, when the corporation has more concrete activities to show, it will seek help from the public.

Set up as a public company, and granted the status of a charity by the Department of Inland Revenue, the Canterbury Development Corporation will divide its investment between normal commercial outlets, and ventures which will provide new employment. The former investment, it is hoped, will generate sufficient income to cover administration costs. These will be spartan: Mr Kerr is running the corporation’s affairs with one assistant, and the directors are taking an active workload.

The new businesses will pay going interest rates for their money, for the corporation judges that lack of security for raising money rather than inability to pay out interest is the main problem for ventures that it will help. One project has been helped already: a venture begun under the City Council’s scheme for helping new small businesses. This firm was under-capitalised, but had achieved market acceptance. However, it would probably have failed if the corporation had not invested in it.

Ventures which will have a chance of obtaining finance will have to show potential for expanding a market; the corporation does not plan to- help finance new companies which will grow only at the expense of existing Canterbury firms. Those which may have a good chance of a loan should offer to create more jobs, especially for school leavers; and they may have a better than even chance if they are related to horticulture or tourism.