N.Z. resources for Fletcher bank—chairman

Press, 4 December 1985, Page 38

N.Z. resources for Fletcher bank—chairman

By

ALAN GOODALL

Tokyo Fletcher Challenge will probably form a bank soon to compete in. the deregulated banking market, said the chairman, Sir Ronald Trotter. He denied that Japanese partners or capital would be needed to set up the bank and its branches. Sir Ronald, who left Tokyo last week after conferring with Japanese financiers and traders, said the bank would be established with New Zealand resources. “Our decision will not be influenced at all by discussions in Tokyo," he said. “For us, it is a domestic matter.” Sir Ronald said the company, New Zealand’s biggest, was still waiting to hear more details of the Government’s deregulation proposals. (The Minister of Finance, Mr Douglas, announced recently that the Government

would make available banking licences to approved local and overseas financial companies and banks as part of measures to open up the finance market.) “We are still studying the matter," Sir Ronald said. “It is quite likely that in some areas of our activities, such as in rural areas, it may be quite appropriate to establish banking facilities,” he said. The Fletcher Challenge mission last Thursday completed a week of non-stop talks with leading Tokyo bankers, financiers and traders. Starting as early as 4.30 a.m. with an inspection of the world’s biggest fish market at Tokyo’s Tsukuji, executives of the group that handles 20 per cent of New Zealand-Japan trade won some rapport with Tokyo business leaders.

The hoped-for breakthrough — sales of New Zealand newsprint to Japan — did not eventuate. Sir Ronald forecast newsprint

exports within five years. His confidence is based on a reading of the Japanese newsprint import market, an upturn in world demand and production increases in New Zealand timber. After selling pulp to Japan for 25 years, the company’s subsidiary, Tasman Pulp and Paper, set up a Tokyo office almost two years ago to break into the newsprint market. This costly effort, headed by Mr Philip Ashenden, has yet to clincn the required deal. Sir Ronald said Tasman had improved production facilities and hoped to get into the Japanese market within five years with paper of “the right quality.” “We are constrained in the short term by not being able to install paper machinery and by the availability of wood supply. “We have resources coming together in five years, although the main increase in New Zealand forestry will not be until some time later,” Sir Ronald said.