Hovercraft harbour service planned for Dunedin

Press, 5 December 1985, Page 62

Hovercraft harbour service planned for Dunedin

PA Dunedin The Otago Development Corporation has found a second suitable vehicle for investment. It is taking a shareholding in a tourist venture which is to operate a hovercraft service on Otago Harbour. The chairman, Mr J. E. Farry, said Harbour Cruises Dunedin, Ltd, would be in operation before the end of the year. Hovercraft and attendant facilities were under construction.-

“Early indications of support and patronage are encouraging and besides offering a commercial opportunity, the venture is seen as adding a dimension to tourist activities in Otago,” he said.

Earlier in the year the ODC said it was taking a third share in Otago Food Processors, Ltd, to make smallgoods in the Dunedin meatworks vacated by Primary Producers Cooperative Society, which has moved into larger premises. Mr Farry said the objectives of the company remain unchanged but capital resources are a limiting factor. Business started with a relatively small financial base and a substantial amount was expended on investigations and development. “It is difficult to see precisely what direction the

company will take in the future,” he said. Further investment opportunities are under investigation, but they require capital. “When existing investments begin to show a reasonable return consideration may be given to seeking additional capital from shareholders.”

Mr Farry said the province’s commercial confidence had improved dramatically during the past two years. Local companies had grown increasingly aggressive, and there was a greater awareness of the investment potential in the region. “Otago appears to have gained its second wind after a long period of despondency and the public seem to have assumed a new sense of confidence in themselves and in their future prosperity,” Mr Farry said. The profit and loss account shows income from interest and fees of $116,826 (1984: $113,515) and operating expenses of $116,626 ($100,921).

The profit of $2OO compares with $12,594 last year but there were no . project development expenses this time against $197,449 last year. Accumulated losses are $224,353, $2OO less than last year. The balance sheet shows. a $514,847 excess of assets

over liabilities (last year: $514,647). This includes $549,000 in investments ($550,000). The Otago public subscribed $735,400 in 100 c shares when the ODC was launched.

The company is managed by the OIX! for a management fee. Mr Farry said the factory is up to export standard and once the company had established a sound domestic base it would seek to expand into exports. : ‘lt will take some time for the new company to establish itself but' the directors feel that it has potential in the medium term,” he said. The ODC’s involvement in mining is being reappraised “with some difficulty” and the value of the company’s prospecting licences are being assessed. “There may be some recovery for the company when the prospecting licences have been processed,” Mr Farry said. He said the ODC made a

$2OO profit in comparison with the loss of $184,855 in its first year. Income was derived from interest on investments and management fees and expenditure was reduced to a minimum.