Carter Holt exports could jump to $800M

Press, 25 July 1984, Page 28

Carter Holt exports could jump to $800M

PA Auckland The directors of Carter Holt Holdings, Ltd, say exports for the financial year could reach $lBO million. In the year to March 31, exports for the group were $132.8 million. A conservative estimate was $l6O million the chairman, Mr R. H. A. Carter, told the annual meeting. In arriving at that figure, he said the board had translated the company’s growth pattern into the future, with devaluation, however, the total could be $l7O million to $lBO million. It was hoped the new Government’s policies would engender a pattern of steady confidence and growth, Mr Carter said.

“Unfortunately consensus policies often lead to indecision,” he said. “The new administration, however, cannot be accused of that in terms of recent actions, but will need to guard very carefully against this if they are to maintain credibility in the future.” Mr Carter said the resurgence in business in the second half of the financial year had carried on in the present trading period. He said devaluation and other measures telegraphed by the incoming Government would have a beneficial effect on Carter Holt, but he warned the benefits of devaluation could be transient.

That would be the case if the dollar was allowed to climb back to pre-devalua-

tion levels. Such a trend would make the devaluation of less benefit to exporters and that would be further aggravated if export incentives were removed, he said. However, Mr Carter said Carter Holt expected a signficant net gain over the next nine months as a result of devaluation. Similarly, C.E.R. would also be of considerable benefit to the company. Carter Holt had to take advantage of “free flow access to Australia.” Mr Carter predicted the real benefits of C.E.R. would come through the elimination of barriers to Tasman investment and the freedom for New Zealand companies to make Australian investment. In that way

local companies could build on Australian links and broaden their horizons. Mr Carter said it would probably be into next year before the Japanese pulp and paper industry showed renewed growth. Canterbury Timber Products, Ltd, had made the final decision to build a medium-density fibre board plant at Wiri. That would probably be operational late next year at a cost of $32 million. Mr Carter reported on recent efforts to have New Zealand radiata pine accepted by British building authorities. He said Carter Holt would probably make its first consignment to Britain before the end of the year.