Elders expects good return

Press, 2 May 1985, Page 28

Elders expects good return

Elders IXL, Ltd, expects to get a significant contribution to profits and turnover from its New Zealand companies, said the chairman, Sir lan McLennan, in Christchurch yesterday. Sir lan is in New Zealand to look at the four companies purchased by Elders and Yates Corporation, Ltd, for SNZ6O million — Hodder and Tolley, Ltd, Allied Fanners’ Co-operative, Ltd, J. E. Watson and Company, Ltd, and Yates Finance, Ltd — after Commerce Com-

mission approval was received last Friday for the acquisitions.

Sir lan said that he and the head of Elders’ pastoral division in New Zealand, Mr Ross Drake, had tried to put some figure on what the contribution from the New Zealand companies, including the new acquisitions, would be, but they were unable to give one. Nevertheless, the turnover figure would be “significant,” when you consider that the 1984 turnover for Elders was about sAust6 billion, he said. “We sometimes say at Elders why weren’t we here (in New Zealand) a long time ago.” Trade co-operation between Australia and New Zealand would be of advantage and valuable to both countries.

For example, one means towards this was the fact that Elders had 32 overseas offices, outside Australia and New Zealand, to handle its business, which would help the existing and the new company businesses in this country, he said. Elders coming to New Zealand opened up avenues for this country and, with Australia, both countries had trade advantages, particularly in the future with South-East Asia and China. New Zealand had lost ground in its overseas markets, particularly when Britain joined the European Economic Community, he said.

Mr Drake, said that Australia consumed 80 per cent of the lamb it produced, but

New Zealand must have been hit much harder in lamb exports by Britain’s decision to join the E.E.C. Elders already has extensive New Zealand interests, including being the largest woolbuyer through Westwools Holdings, and also a 20 per cent interest in Goodman Group, Ltd.

Sir lan said that there was no Elders holding company in New Zealand to oversee its operations in this country, but it would have to be considered.

Sir lan, aged 75, ends his association with Elders IXL in November, having become chairman in 1981 after the merger between Henry Jones (IXL), Ltd, and Elders Smith Goldsbrough Mort, Ltd.

But he is best known for working his way up from the ranks in Broken Hill Proprietary Company, Ltd, to become chairman in 1968,