Offers of assistance pour into Aorangi

Press, 26 May 1984, Page 2

Offers of assistance pour into Aorangi

Greymouth reporter Offers of support and assistance to the beleaguered Aorangi Forest Industries, Ltd, near Greymouth, the only plywood manufacturer in the South Island, began to pour in yesterday. The chairman of the board, Mr Athol McGeady, was particularly touched by a telephone call he received from a solo mother. “She said that she did not have much money, but would endeavour to get $lOO together if that would help to keep Aorangi operating on the West Coast.” He had received messages of support from the chairman of the Westland County Council, Mr Durham Havill, and the Mayor of Westport, Mr Pat O’Dea, had telephoned the support of his borough and that of the Buller County and its chairman, Mr Bill Mumm. Mr McGeady, who is also chairman of the West Coast United Council, said that Mr O’Dea had offered a place to a member of the company’s board in the deputation of West Coast Mayors and county chairmen going to Wellington opposing population-based hospital board funding, and slurryloading of coal, to help in the retention of the company’s functions. The staff of the plant have signed a telex petition to the Deputy Prime Minister, Mr McLay, urging the Government to reconsider its $30,000 offer to the ailing

company. “We find it rather hard to comprehend that the Government is only prepared to pay two weeks wages, whereas we have contributed $lOO,OOO which far exceeds the Government’s offer,” said the petition. The 116 workers who were on duty on Thursday and who signed the petition, said that they were “very distressed” to learn that there had been negotiations involving one of their “most fierce competitors” when all Aorangi had sought was a financial guarantee from the Government. The staff has a 52 per cent shareholding and “never at any stage have we wanted to sell our company,” said the staff. "We know and have proved that our company can again be a profitable and valued industry here on the West Coast,” the message to Mr McLay said. “We believe that Aorangi has a great future with our Nelson log contract coming on stream next year, along with West Coast resources. “We can expand our operation and create more employment for the West Coast,” the staff said. The secretary of Aorangi, Mr Stephen Hall, said yesterday that it “got up the noses” of staff, suggestions that they did not have a financial holding in the company. When Fletcher Challenge withdrew, it had decided to fund the staff shareholding

of a new company, by providing employees with 52.5 per cent of a $2 million shareholding. This was done by Fletcher writing down the value of the assets, and then allowing the new company to write them up again, providing fully paidup shares. “The alternative would have been for Fletchers to say the price for the plant has been increased by $1 million,” said Mr Hall. This, he said, was before Nelson Pine Forest Holdings, Ltd, jointly owned by Odlins and TNL, even joined the company. The proposal to the Government for assistance was a package deal. For an investment of $1.5 million from the Government as a loan or at normal commercial interest rates, a further $250,000 would have been raised outside the present company, plus a further $lOO,OOO from the staff, for increased shareholding. “The staff members have gone to their bank managers and others and have obtained personal loans. In less than a fortnight they have raised that additional $lOO,OOO which is being held in trust by the Bank of New Zealand and the Westland Savings Bank,” said Mr Hall. “If the Government had agreed to the $1.5 million, a call would have been made on the other Coast interests and converted into additional shareholding,” said Mr Hall. The other $250,000

had been pledged by Coast interests. Apart from the solo mother in Greymouth who had offered money. Mr Hall said that he had calls from two Hokitika women who wanted to organise a public meeting in that town to assist the company. He had told them that they should make their move through the Mayor of Hokitika, Mr Henry Pierson. He said that if such a meeting eventuated, the company chairman and the Mayor of Greymouth. Dr Barry Dallas, had promised to attend. In the meantime, the managing director of the company, Mr Brian StanleyJackson, said from Auckland yesterday that the Minister of Regional Development, Mr Birch, had placed pressure on it. “He did it in a personal telephone conversation with me from Pukekohe last week,” said Mr StanleyJackson. He said he had been told by Mr Birch to negotiate with the Auckland timber group, Henderson and Pollard, and the Minister had indicated that assistance to the company through the Development Finance Corporation could be dependent on such negotiations. “Apart from one telephone call between Henderson and Pollard and Aorangi, all the negotiating has been done by the Government,” said Mr StanleyJackson.