West Coast firm accepts Govt offer

Press, 19 May 1984, Page 2

West Coast firm accepts Govt offer

Greymouth reporter The directors of Aorangi Forest Industries, Ltd, yesterday unanimously accepted an offer by the Government through the Development Finance Corporation of limited financial support while the firm explores commercial solutions.

The chairman of the board, Mr A. S. G. McGeady, after a meeting, said that acceptance had been telexed to the Minister of Regional Development, Mr Birch. The directors said that they were particularly assured by the emphasis placed by the Government on maintaining employment on the West Coast and would do their utmost to

achieve that objective. “To this end, the board is commencing as a matter of urgency to identify and approach bona fide commercial parties who may be able to assist in the objective of preserving employment in the area within the structure of a revitalised company.” He said that the company would ensure, before allowing any fresh commercial interests to join the company, that the plant remained at Gladstone, with the same employment opportunities. The Government’s offer was a “lifeline” and it was now up to the company to meet the challenge offered, Mr McGeady said.

The member of Parliament for West Coast, Mr T. K. Burke, said that a base industry for the Coast had been secured and it was now in a position to expand in the future. “The Government’s decision is the end of a long process which has seen a great team effort,” he said.

Continuing pressure on the Government had been based on Aorangi’s features, its high level of employment, its export earning capacity and the value which it adds to each log processed, said Mr Burke. Aorangi employs a staff of 147, which hold a 52.5 per cent shareholding in the company through a trust.