Midland problem shared

Press, 25 February 1986, Page 22

Midland problem shared

PA Palmerston North A Feilding-based aerial topdresser, Midland Aviation, which has gone into receivership, will not be the last agricultural aviation company to make a hard landing, says the general manager, Mr Paul Hendra.

He said the 50 per cent nosedive in fertiliser spreading by farmers was hitting all companies and he knew of others also considering calling in receivers.

The industry’s decline had been caused by the “mistiming” of deregulation, which had changed the whole structure of the industry and seen a lot of small owner-operators moving in, Mr Hendra said.

The combination of deregulation and the downturn in farm in-

comes, and, therefore, farmer spending on things such as fertiliser, could not be resisted.

“We’ve voluntarily called in receivers now rather than in six months when the situation would be irretrievable. “We consider this to be a responsible attitude, rather than hanging on and hanging on and then finding the bank and other creditors can’t be paid out. “We’re not the only ones having trouble, and I imagine we’ll be the first of a few to do this,” he said.

The company will continue to trade until the receiver, Mr Rod McKenzie, of Palmerston North, has examined the company’s state and makes a formal decision on the future.