Aorangi news cover ‘completely distorted’

Press, 21 June 1984, Page 2

Aorangi news cover ‘completely distorted’

By

OLIVER RIDDELL

in Wellington

Some news media coverage of the Aorangi Forest Industries issue has been “completely distorted,” according to the Minister of Regional Development, Mr Birch. He had not been prepared to comment on previous inaccuracies because much of the correct background was still commercially sensitive, he said. But he took exception to the allegation in Wellington’s morning newspaper, the “Dominion,” that “the overwhelming local backing

forced the Government’s hand.” Mr Birch said the Government had been well content with the contribution of $350,000 from the West Coast, and it had been included in the earlier package that had been supported originally by both the company and the Government. The company itself had decided to raise further private capital from the West Coast, and that had been the basis for the final package. The Government had simply not been prepared to make substantial loans

available until Aorangi had addressed the financial, management, and shareholder issues which were of p great concern to the Government, he said. Substantial taxpayer money was involved, and would have been very much at risk if these issues were not addressed. Mr Birch said the final package did address these issues, as had the earlier proposal supported by the Government. At no time during the negotiations had the Government considered the suggestion by local authorities of raising their own loans.