Fletcher easy about Chile

Press, 18 May 1989, Page 25

Fletcher easy about Chile

PA Wellington Fletcher Challenge was “increasingly comfortable” about its investment in Chile, Fletcher Fishing International’s chief executive, Mr Eric Henry, said yesterday. Because of this, the company broadened its South American investment to include the Brazilian forest products industry, Mr Henry said.

He made the comments at the Pacific Basin Economic Council’s annual meeting in Taipei. Mr Henry is-council chairman.

South America had great potential for business because of its rapidly growing population and affluent middle class, as well as competitive asset prices, Mr Henry said. Fletcher Challenge owns Tasman Forestal SA, one of Chile’s leading forestry companies.

Chile’s exchange rate policy was rational and exchange controls were relatively limited. “Taxation policy gave investors the choice of fixing their tax rate for duration of the project or accepting what must be the world’s current lowest tax rate on retained profits of 10 per cent,” he said. “The restrictive regime of General Pinochet and the internatonal concern about human rights violations have been very real issues,” he said. But a return to democracy was under way. Other New Zealand investments in Chile include the fishing, forestry and fuel distribution interests acquired by Carter Holt Harvey, and a SUS3O million investment in the country’s dairy industry by the New Zealand Dairy Board.