Investment plan ‘unlikely’

Press, 28 December 1989, Page 1

Investment plan ‘unlikely’

By

TOM METCALFE

A multi-million-dollar investment proposal for Canterbury, backed by a syndicate of Hong Kong businessmen, is now unlikely to go ahead. The New Zealand partner, the Canterbury Development Corporation, has waited more than a month for the syndicate to confirm details of the proposal, but it seems interest has petered oiit in Hong Kong. The corporation’s chief executive, Mr Doug Kerr, said yesterday that he now thought nothing would come of the proposal, and the corporation was likely to withdraw its support. “I think even if they did come back now we would have a lot of reservations.”

There had been difficulty communicating with the syndicate. The corporation would make another approach to the syndicate before making a final decision on whether to drop the proposal. The proposal became public in August, when the syndicate of six businessmen visited Christchurch to meet civic, Government and industry leaders to discuss their plans. The plans included using Hong Kong money to fund existing local businesses into export markets, and Hong Kong Chinese families immigrating to Canterbury.

The proposal was praised by the then Mayor of Christchurch, Sir Hamish Hay, and the Minister

for External Relations and Trade, Mr Mbore. Mr Kerr described it as “the most constructive and progressive plan for Canterbury.” It was expected to generate millions of dollars in job-rich, export-based industries. However, in November the corporation revealed that it had misunderstood the extent of the syndicate’s wealth, and that the scope of the proposal might not be as great as first thought. Mr Kerr said yesterday that he was disappointed by the apparent failure of the proposal. “I hoped that it might have come off. It would have been good, but it’s no good having ah agreement that did not have substance,” he said.