Sale still on despite writ

Press, 7 December 1988, Page 2

Sale still on despite writ

By

PATTRICK SMELLIE

The Government is going ahead with the sale of the Bank of New Zealand, confident that legal proceedings against the bank will not succeed, the Minister of State-Owned Enterprises, Mr Rodger, told Parliament yesterday.

Answering a question from the Opposition spokesman on Stateowned enterprises, Mr lan McLean, Mr Rodger said the underlying objective of selling assets like the BNZ was to reduce debt servicing costs.

“The Government’s assessment is that there is no basis for assuming that any delay in the sale of

all or part of the Crown’s shares in the BNZ would result in a better outcome for taxpayers,” he said.

Asked whether the $2OO million writ against the bank taken out by Elders Resources, Ltd, was being taken into account as a contingent liability, Mr Rodger said he was aware of the writ. “I am also aware that the BNZ has sought extensive professional advice on the matter, and are confident the claims can be resisted.” The writ relates the BNZ’s involvement in funding defensive sharebuying by Rada Corporation during the Elders takeover bid for N.Z. Forest Products.