Businesses encouraged to move south

Press, 7 October 1987, Page 2

Businesses encouraged to move south

The Canterbury Development Corporation hopes to encourage North Island businesses and Government-run enterprises to move to Christchurch.

The corporation is completing a study on the cost advantages for businesses in Christchurch, compared with those in the North Island.

When the study is ready next month, the corporation Intends to market it to businesses, Government corporations, and Stateowned enterprises to encourage them to move to Christchurch.

At a press conference yesterday, the corporation’s chairman, Sir James Stewart, a director, Mr Warren Head, and the chief executive, Mr Doug Kerr, emphasised that S.O.E.S, service industries, and high technology, or sunrise industries, were the answer to future employment in Canterbury.

Mr Kerr said that the manufacturing industries were not as cost efficient as those in the North Island because of the freight costs in taking goods across Cook Strait The high cost of freight was seen as a barrier to attracting North island manufacturers.

The exception for manufacturing in Canterbury was in making products for export. Preliminary evidence from the study showed that a Wellington company or S.O.E. moving to Christchurch would save $464,000 a year. A Christchurch company employing 100 people, and requiring 1000 sq ft of central business development office space could save $369,000 a year compared with the costs in central Auckland. Individuals would also benefit, the average cost of a house in Christchurch being about $54,400 less

than in Auckland and $18,600 less than in Wellington. The advantages of developing the necessary technological and services industries also extended to the presence of two universities, a polytechnic, 16 research institutes, and a well educated labour force in Christchurch, said Mr Kerr. The ease of communication meant that companies could have their head offices in Christchurch.

Mr Head said that the emphasis would also be on the quality of life inChristchurch — easier parking and access, without the travelling time now of an hour each way during the working week for some Aucklanders. Sir James said that although the manufacturing and rural sectors had gone through hard times, Canterbury’s fortunes still remained strongly based on these.