Aorangi aid offered by Government

Press, 18 May 1984, Page 1

Aorangi aid offered by Government

By

OLIVER RIDDELL,

in Wellington

The Government has announced that it is prepared to offer, through the Development Finance Corporation, limited financial support to the struggling West Coast firm of Aorangi Forest Industries, Ltd.

Support would be given if it were necessary to help the company until possible commercial solutions could be explored, said the Minister of Regional Development, Mr Birch. He did not say what form of assistance might be given. “It is now up to Aorangi to consider the Government’s proposals,” he said. The Government was extremely concerned about the employment consequences on the West Coast

if the firm closed, and it was for this reason it had made the response to Aorangi.

“Any assistance resulting from this response is not a commitment by the Government to ongoing support for the company,” Mr Birch said.

Outside parties had expressed an interest in the continued running of the plant at Gladstone, near Greymouth. Mr Birch said he was concerned that those parties should be given the chance to assess the situation properly. The Government would not consider requests for further restructuring assistance for Aorangi until it was satisfied that commercial possibilities had been fully and reasonably explored.