CAMPAiGN AGAINST

iGN CONTROL or AOTEAROA

r

June 1991

u

Contents

Page

Cornalco - still after Manapouri; profits and taxes of smelter

estimated , . . . . . . . . . . . . . . . . . .. 2

The cost of foreign investment, by W. Rosenberg, former

Reader Economics, University of Canterbury . . . . .. 5

Overseas Investment Commission decisions, December 1990

to March 1991 . . . . . . . . . . . . . . . . . . . . . . . .. 9

Land sales to overseas interests, December 1989 to Febru-

1991 . . . . . . . .. 2'1

Jepen 's a new book

viewed by Murray Horton .

Obituary - Jim Andrews

29

Rio Tinto Zinc - winner of Corporate Villain award for 1990 ... 3:Z_ Sand too hot to handle - CoromandellWestland mining pros-

pects . . 3'+

as a P!Jb!ishOO

The material in this issue woyid

Something

new.

(still) making a play

And we have estimates of (real) profits made by the Bluff aluminium smelter

even more interesting, taxes paid by it - or rather, not paid,

Still wants Manapour!

CAF'CA broke news to the media that the Prime Minister had met Comalco's New Zealand general manager, Kerry Mcfsonald, had met to discuss the sale of part of the Manapouri power to Comalco, A 20% is being talked about. It is being taken very seriously: a special Cabinet subcommitte is sale. The latest we have heard is that Treasury has monopolised the debate on the proposal on the grounds of "commercial confidentiality", This bodes ill. McDonald has also had meetings with the Guardians of the Lake who we understand are opposed to any sale. Other environmental groups have stated their strong opposition on the grounds that it would put increasing pressure to compromise on the safeguards that protect Lake Manapouri,

McDonald is quoted as saying that "developments Point aluminium smelter

depended particularly on the privatisation of power scheme", (Press, 11

April, 1991.) This arm-twisting allows the more politicians to claim that

privatisation of Manapouri will "create . For example, on 1 February 1,

Cooper wrote to Peter Kammler of (Stop eRA Pollution): "Hopefully we can

sell some of Lake Manapouri to Comalco and get some cracking." He didn't explain what industry: we can only guess.

Of course, even guarantee their smelter they ourselves

if this destructive creation was desirable, is no

sale will lead to a Aluminium have fallen

Instead of using the power station in

sell it to other consumers at a '>AJJ'.W."""·'d.!. profit we

electricity from a flooded, Manapouri.

nrooosai must be seen in the context of current pressure to privatise and/or split. The debate in government circles is whether it is possible to privatise Electricorp without handing over a "natural" monopoly into private hands. One option that seems likely to go ahead is to split off the transmission operations of Electricorp (Transpower) into an independent company. Generation or would still be done by Electricorp - split into two or more smaller, competing, companies - but with private power stations allowed to use the national grid to sell their power, This is where the Manapouri scheme fits in.

Manapouri being the cheapest source of electricity in the country, a number of power boards, including the Auckland Electric Power Board (chaired by National president, John Collinge) and Christchurch's Southpower, have expressed interest bidding if it were for sale. It would provide twice the power that Christchurch needs, and almost its peak demands. However, Southpower opposes the splitting up of power generation system.

· 3 ~

Southpower recently published a report stating that "proposed Government reforms to the electricity ector next year would lead to rises in residential power bills of up to 44 per cent. .. its residential charges in some

cases could double. A verage residential

prices would increase 24 to 44 per cent and business rates would fall 22 to 32 per cent." This was challenged by other power boards, saying the steep rise in power charges was only because Southpower hadn't phased the changes in over a period. This means residential consumers in other power boards have already experienced these kinds of in-

The figures he calculates are startling. Though after-tax "operating surplus" have increased steadily from a loss of about $7 million in 1971 (the only year a loss was made) to $200 million in 1989, taxes were negligible except in the last two years of period of the report. He estimates that between 1971 and 1987 they were frequently zero, never more than $9.2 million a year, and on average much lower: about $1.6 million a year. In the last two years, taxes leaped up to $38.6 million in 1988 and $72.7 million in

1989. We are not sure why the sudden change occurred.

creases.

Comalco tried to buy Manapouri from the Labour government - see previous Watchdogs. Further back, of course, it originally was going to build the power station itself, but was bailed out by the government when it cried poverty.

Smelter: few taxes, some vital statistics Geoff Bertram, senior lecturer in economics at Victoria University, is currently updating a paper he wrote with Christine Dann in 1981 which analysed the foreign exchange returns of the smelter's operations. Since the smelter keeps much of its information top secret - particularly the tax it pays - the information he presents must be estimates only, based on public sources and derived figures. But it is the best information we have.

Peter Gordon and Comalco

Peter Gordon, Cabinet Minister in the Muldoon governments, died recently. He figured in the "Comalco documents" released by CAFCA in 1980 which revealed Comalco' s dirty tricks at the highest level.

As Minister of Labour and State Services in 1976, Gordon acted as front man in Cabinet for Comalco when a Power Operators dispute threatened to close down all power stations (including Manapouri),

Comalco met with him and senior N.Z.E.D. (Electricity Department) management An internal Comalco memo (6 May. 1976) described the stratagem thus:

"Gordon asked us 1.0 prepare a Cabinet paper for presentation on Monday May 10 by Electricity Minister E.S.F. Holland.

"This was done and our draft (attached) was delivered personally to Mr Holland's private secretary who will arrange to have it retyped on official Cabinet paper stationery. The secretary advised J.L.M. [J. L. Merrett. Executive Director of NZ Aluminium Smelters Ltd] and I [M. B. Bennett, Corporate Manager of Comalco in Aotearoal that he would not refer the paper to NZ.E.D. - or any other department - for comment Holland, on instruction from Gordon who is number 3 (behind the P.M. and Deputy P.M.) in Cabinet rank, will speak to the paper and Gordon will support him."

The events occurred when Cabinet had already decided to renegotiate Comalco' s power price upwards: according to the memo, "if I read him [Gordon] correctly there was not a concensus [sic] of sympathy for our position" in a previous Cabinet discussion of the smelter's situation.

It is not dear whether the Cabinet knew that Holland and Gordon were presenting Comalco's paper. It is also not clear what effect the paper had. The dispute escalated, but was resolved before Comalco's operations were affected.

is to estimated to

u .... ,.o,,"'U per week that Electricorp estimated

(see Watchdog No. 1990), the extent of

to smelter becomes dearer.

tax to $1.5 Comalco benefit

Over the years 1971 to 1989, the smelter produced 3,217,172 tonnes of primary aluminium of which 2,753,831 tonnes were exported. Local consumption has stayed almost constant around 30,000 tonnes since 1973.

The price of this locally used aluminium was price controlled until 1980. During this period it cost midway between the world price of aluminium and the price being declared for metal exported by the smelter partners. After 1981, no local prices are presented by Bertram, but if local buyers are paying close to the cost of the competing product - the imported metal - they have been paying a 70% premium over the export value. There is also a considerable margin between the declared export value per tonne and the concurrent world price. More information would be required to calculate whether insurance and freight costs would be sufficient to explain the difference, If the smelter were deliberately under-declaring export values it could be evading taxes in Aotearoa,

In 1989. the smelter paid $60 million in wages and salaries, had an estimated sales revenue of $800 million to $850 million, including $100 million locally, imported an estimated $260 million of alumina and other raw materials, and paid an estimated $1 million for its electricity.

International connections

Following the forced closure of its 53.6% owned Bougainville copper mine, Comalco's parent company, CRA, is reportedly being pressured by the Papua New Guinea government to sell it. The hugely profitable mine was originally imposed force over local opposition'. The latest Bougainville independence struggle is a continuation of the same conflict - and a direct result of the brutal tactics used by CRA to establish the mine. This time, it appears that the PNG government has been forced to recognise that if CRA continues as its partner, the mine is doomed: "eRA has told the government it would be prepared to sell its stake if the price is light and if the government believed

CRA's withdrawal was critical to resolving the crisis closed the mine almost two

years ago, However, CRA Minerals' managing Ian Johnson,

CRA did not want to sell." (Press, 26 March 1991,)

Meanwhile, another CRA mine in Papua New Guinea is having problems with less than grateful locals. The Mt Kare alluvial gold mine, 51 per cent CRA owned, was dosed for a week March when "an armed gang raided the camp and demanded the company build a road" (Press, 28 March, 1991).

In Queensland, it appears that Comalco has used workers from Aotearoa for strike breaking after it sacked 90 workers from its Boyne Island aluminium smelter, near Gladstone. "New Zealand staff' were "flown over to prevent disruption of operations at the smelter" (Press, 23 April, 1991).

'See River a/Tears by Richard West, Earth Island/Angus and Robertson, 1972.

The Cost of Foreign Investment

By W. Rosenberg formerly Reader in Economics, university of Canterbury

At the bottom of New Zealand's economic (and social) crisis lies the inability, since 1975, to pay our way internationally.

Between the March years 1975 and 1990 New Zealand accumulated deficits on current account vis a vis the world around us of about $NZ32 billion.

Year after year, without exception, New Zealand had to pay for imports, foreign services and interest on debt obligations more than it earned. with an expected current account deficit for the March year 1991 between $4 and $5 billion things are getting worse.

The sale of New Zealand assets in the form of private and publicly owned enterprises - "direct foreign investment II - has frequently been advocated as a means to deal with our pa~nent difficulties.

Annual Balance of Payments statistics for 1984/85 to 1988/89 have now become available (Department of Statistics "Hot-off-thePress" 89/90/287 and 90/91/161) which contain detailed figures dealing with foreign investment.

There are two types of foreign investment: Investment by foreigners in New Zealand and Investment by New Zealand residents abroad.

Foreign direct investment is defined as investment by foreign residents that is made to acquire a lasting interest in a New Zealand private enterprise, the foreign investor's purpose being to have an effective voice in the management of the New Zealand enterprise. At least 25% of the New Zealand enterprise must be foreign owned to qualify.

New Zealand foreign investment abroad is identically defined as tar as foreign enterprises abroad go.

The effect of foreign investment on the balance of payments is twofold:

Profits made by New Zealand companies become payable to foreign residents. The more profitable New Zealand industry the greater the accrual of foreign debt to be paid on this account.

On the other hand, foreign residents make a capital contribution to the New Zealand exchange reserves when acquiring New Zealand businesses.

Thus income from "foreign investment in New Zealand" is a drain on the balance of payments, whereas capital contributed in the acquisition of foreign assets compensates for that drain.

In the case of New Zealand investment abroad the opposite applies: Income is an accrual to our foreign exchange reserves, capital is a drain.

- 6 .

Table 1 below summarises the effect of foreign investment during the last five years:

Ta.ble 1

Foreign Investment in New Zealand and made by New Zealand residents abroad 1984/85 to 1988/89

in $NZ million

(minus sign = loss; + sign = accrual)

Foreign Investment New Zealand Foreign
March Year in New Zealand Investment abroad
Income Capital Income capital
1985 -720 +456 +205 -349
1986 -711 +745 +176 -166
1987 -647 +402 +206 -949
1988 -970 +238 +311 -938
1989 ~514 +725 +287 -226
-3,562 +2,566 +1,185 -2,628
====== ====== ====== ====== It can be seen that Foreign Investment is a very costly item, as far as the balance of payments goes.

As far as investment by foreign capitalists in New Zealand goes, the outflow on income account (albeit on investments which go back to earlier years) during the five years of "Rogernomics" in Table 1 exceeded the inflow of acquisition by foreigners of New Zealand businesses by one billion dollars.

As far as New Zealand capitalists' investments abroad go, the outflow of New Zealand funds exceeded the inflow of income by almost one and a half billion dollars.

Thus "foreign investment" cost the New Zealand exchange reserves two and a half billion dollars in the five years under review.

Since the total current account deficit between 1988/9 was $NZ13.6 billion, foreign investment eighteen per cent to that deficit.

1984/85 and contributed

Of course, to find the money which foreign investment cost the New Zealand economy, it had to be borrowed. The cost of foreign investment must, therefore, be one of the reasons why New Zealand's interest and debt service burden amounted to an additional $NZ12.5 billion during that period.

Table 2 shows the relation, year by year, between New Zealand's cost of foreign investment on income account (nett) and total debt servicing costs.

Table 2

Direct Foreign investment cost and other debt servicing 1984/5 to 198/9

in million $NZ

March Year

Direct investment Income OutfJ,ow

other Debt Servicing

Total Outflow

1985 515 1,692 2,207
1986 535 2,274 2,809
1987 441 2,467 2,908
1988 659 2,817 3,476
1989 $227 3,261 3,488
2,377 12,511 14,888 Balance o f payments Deficit Total

3,597 4,187 2,812 2,628 1,362

14,586

Table 2 shows that New Zealand's balance of payments deficits are entirely due to our debt burden overseas and that the direct investment outflow is a considerable part of that burden.

Table 2 differs from Table 1 in that no account has been taken of capital inflows and outflows from direct foreign investment. Since, however, the whole of that capital inflow has been absorbed by direct investment capital outflow, it can be ignored.

Geographically Australia is the most important foreign investor and investee. However, due to its traditional and old investments in New Zealand the united Kingdom is still the receiver of the largest single amount of income from this country. USA is third. Table 3 shows the distribution:

Table 3

Regional Distribution of Direct Investment related foreign exchange flows 1985 to 1989

in million $NZ

Income Capital
Outflow Inflgw Outflow Inflow

Austral.ia 1,152 1,116 2,308 769
UK 1,529 87 77 958
USA 674 52 264 796
All other 207 -7Q -21 _1_l
3,562 1,185 2,628 2566 (Minus signs indicate losses or disinvestment)

It can be seen that - although in the case of Australia the income inflow from New Zealanders i holdings in Austral La exceeds that of Australians from New Zealand, capital outflow far more than compensated for this slight gain.

Whether a country like New Zealand can really afford the freedom for its own capital controllers to export borrowed capital, when we must borrow to pay for the returns on money lent to us, is questionable. Indeed until 1984, when all restrictions on capital export were lifted, such transactions were not permitted.

Deregulation of the international capital market, as far as New Zealand is concerned, seems to have reacted adversely on our international debt position which has shown an increase in international debt between 1984 and this day from $NZ16 billion to $NZ50 billion.

One may wonder if foreign investment is as unmitigated a good thing as it is sometimes described to be by Government spokespersons.

Overseas I nvestment Commission

1990 to March

decisions

December 1990 decisions

A major, and controversial, takeover of State Forests by a Japanese company was approved this month. Five forests, Aupouri (22586.8690 hectares) and Otangaroa (3764.31270 hectares) near Kaitaia, Wharerata (7979.0758 hectares) and Putunsmu (4101.0247 hectares) near Gisborne, and Ngaumu were sold to Juken Nissho Ltd (85% owned by Juken Sangyo Co. Ltd and 15% by Nissho Iwai Corporation, both of Japan). The deal, part of the government fire sale of forests, sells the Crown Forest licences and assets, excluding the actual land. Aupouri and Otangaroa together sold for $41.5 million, Wharerata and Putunamu together for $43.5 million. The justification for the approval of the Japanese purchase is that "timber will be exported through established contacts in the international market place. New jobs will be created in economically depressed rural areas." Once again, we are seeing a primary industry being sold to its customers. This both reduces the return to this country for the raw material and reduces the likelihood of it creating jobs by being further processed here. The same company is involved in controversy over the Triboard mill at Kaitaia: see January 1991 decisions below

A deal with a similar theme was approved in Marlborough. ANA/TC Marlborough Cherry Company Ltd, which is 50% owned by An Nippon Airways Trading Co Ltd, is buying a 16.172 hectare cherry farm near Blenheim. The OlC's reason for approval: "The New Zealand cherry industry was and remains dependent to a substantial degree upon the Japanese market for its ongoing viability. It was seen as important by the vendors to secure by the establishment of a joint venture operation, an ongoing ability to both export fruit to Japan but also secure airfreight access to Japan at times of peak demand. All Nippon Airways Trading Co. Ltd is a fully owned subsidiary of All Nippon Airways Ltd, a substantial international airline. The company through its subsidiaries is involved in the distribution of various food items in Japan, in particular the distribution of fresh fruits. The applicant has advised that the Japanese partners will assist in providing capital required to develop the property." Again, markets are being tied to a particular customer who will have little interest in adding value in Aotearoa.

The Aotearoa subsidiaries of the U.S. Xerox organisation Rank Xerox New Zealand Ltd, and Rank Xerox Finance Ltd (both formerly owned by Xerox's U.K. subsidiary, Rank Xerox) have been taken over by the Australian distributer of Xerox equipment, Fuji Xerox Co, Ltd, which is 50% owned by Rank Xerox, and 50% by Fuji Photo Film Ltd of Japan. "The acquisition will result in a more efficient use of the Xerox group's resources in Australasia." It is a reflection of the increasing importance of Japan's industrial power relative to the U.S.: Xerox sales staff, at one time secure in their monopoly position on the photocopier market, now are hawking Fuji equipment some of it relabeled as Xerox.

In mining, a limestone, clay and sand numng licence and a Crown leasehold over 167.0846 hectares in the Makareao Quarry, Dunback (Moeraki), has been shuffled between companies in the Milburn New Zealand Ltd pack of companies. The mine will be acquired by subsidiary Taylor's Lime Co Ltd. Milburn is owned by Swiss company Holderbank Financiere Glads Ltd. Another Milburn associate, Mclfonalds Lime Ltd (52% Milburn, 28% New Zealand Steel, and 20% Fernz Corporation) is liquidating its subsidiary, Hauturu Lime Company, and taking over its 157.3817 hectares of quarry and other land.

· 10 .

In other transactions, a UK citizen is acquiring a 1743 hectare farm at

via a company, Three Stone Bay Ltd, "for the purpose of conserving and developing the land to eventually be opened to the public". Four Taiwanese who "have applied for and intend to live permanently in New Zealand", are buying the optimisticly named Lucrative Investments Ltd for $1,750,000. The company owns "farming land situated in Rotorua, including approximately 54.74 hectares currently zoned for rural purposes," Though the approval is for "owning, developing and farming" the land, the emphasis is clearly on "development", and not of a rural sort: "The properties have been purchased for development purposes. The offerors have experience in the development and construction industry in their homeland of Taiwan. The local Council has indicated to the purchasers that the rural zoning is likely to change in the near future." A Japanese couple who in December 1989 bought a deer farm in Endean Road, Paradise Valley, Rotorua have bought another 20.7250 hectares including a "substantial dwelling" which they say they intend to use as a lodge for "farm stay" visitors. The farm now totals approximately 106.445 hectare and is owned via two holding companies: Greenan Industries Ltd. and its subsidiary, Daller Developments Ltd. "The applicant also advises that as a consequence of the fall in deer prices, additional land is required to make the existing fanning operation a truly economic unit".

Sharebroker Buttle Wilson Ltd becomes a 100% foreign owned company through internal restructuring. It is now owned by Buttle Wilson Group Ltd, which in tum is 50% owned by Potter Warburg N.Z. Ltd, an Australian company, and 50% by Chepstow Nominees. Previously the two shareholding companies owned Buttle Wilson Ltd directly.

January 1991 decisions

The privatisation of our ports, following their corporatisation, has begun to appear on the horizon. The Lyttelton Port Company is raising finance using two other companies, Port Finance Investments Ltd and Port Finance Ltd. Ole approval is required because the British-owned National Bank which is providing the finance holds all of one class of share in Port Finance Ltd (one $0.01 ordinary D sharel) as part of its security. This presumably gives it some control over Port Finance Ltd. A reminder of the degree of foreign control already present in the ports, and waiting none too patiently to buy the ports themselves, is provided by OIC approvals given to a reshuffling of the ownership of the Union Shipping group of companies. It is classed as 100% Australian owned, being in the hands of TNT and Brierley Investments Ltd. Union Shipping, Union Travel and Union Steam Ship Company are obvious subsidiaries, but in may be less well known that one of the dominant employers of waterside workers, New Zealand Stevedoring Company Ltd, is also in the Union Group.

A Malaysian company which the OIC has refused to name has approval to acquire up to 49% of Bancorp Holdings Ltd. Perhaps fittingly, in their 1990 "Review of operations and the New Zealand economy", Bancorp included an appendix listing "foreign acquisitions in New Zealand since 1987".

Several developments in forestry are documented.

As noted in the December decisions, Juken Nissho Ltd is involved in a controversial project in Kaitaia. The Muriwhenua Corporation wanted to take over the bankrupt Triboard mill and forestry rights (run by Northern Pulp Ltd) as a development project for its people. J uken Nissho was sold the project instead (for $17.5 million), Muriwhenua is now challenging the OIC's decision to approve Juken Nisshos purchase.

The Commission defensively gives as its reason for approval only that was taken in terms of the general investment criteria."

decision

Winstone Pulp International (Hong Kong registered) has been given approval to acquire the Crown Forest licence and assets (excluding the 9,000 hectares of land) of the Karioi Forest. Wins tone and its Korean partner, Samsung, have been pulping Karioi Forest for some time. They will now effectively own it.

I'I'T now has approval to take a stake in our forests. Subsidiary ITT Rayonier New

Zealand Ltd was in January given approval to acquire the Kohitere Forest, .iro- .J.

whenua, including 670 hectares of land. ITT is notorious for its part in the downfall

of the Allende government in Chile; it already has other interests in Aotearoa.

In mining, Cyprus Gold New Zealand Ltd have contracted Ram Raising Ltd, a subsidiary of the private Canadian firm J.S. Redpath Ltd, to construct a shaft in the Golden Cross Mine in Waihi,

Another vineyard has become Japanese controlled. Sainte Neige Export Wines Ltd will be 60% owned by Kyowa HakkoKogyo Company Ltd of Japan, with the majority of the remaining shares held by Corbans Wines Ltd. It was previously 24% owned by Kyowa; the extra 36% is reported by the Commission to have been purchased for $3,600. Sainte Neige owns and operates vineyards, and exports wine from 134 acres of rural land in Hawkes Bay and Marlborough. "It is claimed new technology and expertise will be introduced. Kyowa has assured Sainte access to overseas markets," says the Commission. It may also be another case of a foreign company which would otherwise buy from local wine-makers, sewing up its sources of supply.

In other rural land decisions, two Taiwanese citizens who have been granted permanent residency have approval to acquire an 11.579 hectare kiwifruit orchard at Waitemata for $425,000 by purchasing the holding company Altmura Investments Ltd; a Lichtenstein-registered company, Pohuenui Station and Island Resort Ltd, is now the owner of 2,102 hectares In Pelorus Sound (the company's owners, all "overseas persons", previously owned the station in their own names); a U.S. citizen who "intends to reside on the farm at various intervals in each year" and redevelop the property, has approval to purchase a 459 ha. property at Mangawhai Heads which "has not been properly fanned for several years and was used ... as a rural retreat"; and four Singaporean citizens who already own a market garden business in Tauranga have approval to purchase (for $378,840) a 4,7373 hectare market garden at Pyes Pa Road, Tauranga, on condition that they obtain permanent residency within twelve months. It is interesting that purchase of their first market garden did not need Commission approval because it was not situated on rural land.

The only commercial property transaction relates to the Pacific Tower in Albert St Auckland. It was being built by McConnell Dowell for Bob Jones, but he refused to buy in a very public falling out between speculators. The approval given by the Ole puts the building 100% in overseas ownership and, the Commission is advised. "will enable the project to be continued by another vehicle with financing for the project in a way that still maximises the parties' respective interest in the project." The price paid by McConnell is $1.00.

February 1991 decisions

Guardian Royal Exchange Assurance of New Zealand Ltd has sold all its general insurance business to Sun Alliance Insurance Ltd "as part of a worldwide rationalisation".

· 12 ..

Brierley Investments Ltd sold 160 million of its shares in Magnum Corporation (54% of its shareholding), one of Aotearoa's two largest liquor conglomerates, to the Singapore-based company Asia Pacific Breweries Ltd (itself 50% owned by the major Dutch brewer, Heineken). The payment was $64 million plus 14.2 per cent of Lion Nathan Ltd, the other liquor and retailing giant. The transaction was via "joint venture company", cutely named Mungarn Holdings Ltd (sic). "Brierley wish to improve the performance of the their investment (in Magnum) specifically in their brewing operations. Asia Pacific have had a long term interest in the New Zealand brewing industry through Lion Nathan and will now offer its technical expertise to Magnum's operations," says the Commission. It is not at all clear what, if anything, is gained for any New Zealander other than shareholders in Brierley Investments Ltd: the "expertise" was clearly in the country in the first place. Brierleys have since sold all but 942 of its directly held Magnum shares "to various overseas and domestic institutions", and all its newly acquired Lion Nathan shares "for $170m to institutional investors" (Press, 20 April, 1991). The ultimate purpose of these transactions was to help finance Brierleys' acquisition of the British hotel chain, Mt Charlotte Investments.

Mobil has set up a finance subsididary in this country, Mobil New Zealand Finance Corporation. It is the holding company for Mobil subsidiary Atlantic Union Oil Company (NZ) Ltd. One can speculate that the new company's establishment is related to deregulation of the oil industry and the subsequent rush by the oil companies to corner the best retail outlets, either by direct purchase or by tying the owners into supply agreements. Many petrol stations have been renovated to the international Mobil formula - owner-operated stations would frequently be financed into the renovations by MobiL

In rural land, the most significant transaction was Portmore Enterprises Ltd (nominally of the British Virgin Islands) being given the right to acquire the 13,685.66 hectare Cecil Peak Station for $1,999,024. The Christchurch Press reported in March that the station ("one of New Zealand's largest sheep stations") had been sold to the Morningside Asia Group of Hong Kong.

Other rural land transactions: the 885.0559 hectare Kinloch Station has been sold to a company owned by a Japanese resident, Barwon Ltd, for $2,560,000 to be "extensively redeveloped" and run by local contractors and a New Zealand manager; a 39.0708 ha. farm at Edendale, Southland IS being sold for $230,000 to a Dutch couple intending to live on the block and develop It into a horticultural/market gardening operation; a U.K. resident is buying 80% of a 515.9741 ha. Masterton farm (owned by Rawhiti Farm Ltd) for $710,000; and the 1515.1542 hectare Stanton Station, Stanton Road, Fairlie, South Canterbury has been bought by the Australian company Farnsway Mining (NZ) Ltd, to be run by a farm manager

In commercial property, a mysterious transaction involving a Hong Kong "unnamed joint venture" owned by Brierley Investments Ltd and S. E. A. Holdings Ltd buying the $100 company Verisopht Investments Ltd is said by the Commission to "benefit the New Zealand commercial property sector by expanding the local market while increasing international investor awareness of local opportunities." The company's name certainly describes the commercial property market at present: presumably its function is to hawk off commercial property overseas.

March decisions

The Commission appears to be aiding and abetting cement transnational Holderbank Financiere Glads Ltd of Switzerland, owner of Milburn Cement in avoiding tax. Milburn New Zealand Ltd is borrowing $40 million from Westpac Banking Corpor-

~ 13 -

ation. It is doing this by setting up a Unit Trust (caned Unit which

will buy preference shares in a Westpac subsidiary. The Commission, in its reason approving the transaction says: "The Unit Trust is created for technical company law and taxation reasons." The Unit Trust uses subsidiaries Taylors Lime Company and Alstone Holdings (NZ) Ltd as nominal shareholders.

That flag bearer of the free market and private enterprise, the Chase Corporation, in virtual liquidation, has had one of its principal assets, Farmers Trading Company sequestered by the banks it owed money to. A syndicate of banks led by SBSA (NZ) Ltd, subsidiary of State Hank of South Australia (itself in some trouble at home) has set up two holding companies, Syndac Holdings Ltd, and Vidon Holdings Ltd to take over FTC. The syndicate of banks "holds legal mortgage over the shares in (FTC) as security for a debt owed by Chase and guaranteed by wholly owned subsidiary Founm tain Securities Ltd. As partial satisfaction of the Chase/Foundation debt to the syndicate, it is now proposed that members of the syndicate will acquire the Fanners Trading Company Ltd. This transaction is aimed at maintaining the business of Farmers as a viable going concern while further steps are taken to find a longer term owner." Another syndicate of banks is acquiring the FTC Centre in Hamilton for approximately $12 million in discharge of its mortgage. The banks, via Falchion Investments Ltd, are the mortgagees of the FTC Centre which was owned by Addendum Investments Ltd, part of the Chase group. The banks involved are: Pittsburg National Bank, National Australia Bank Ltd, Societe Generate Australia Ltd, Christiana Bank og Kreditkasse, Italian International Bank PLC, Institute Bancario San Paolo Di Torino, Bank of New Zealand, and Nederlandsche Mlddenstandsbank MV. The same syndicate, this time via Althaea Properties Ltd is acquiring Mid City One in Auckland for approximately $18 million. Again its former owner, Mid City Centre Ltd is part of the Chase group and the property is being acquired by the banks in discharge of their mortgage over it

Bell Canada International (N.Z.) Ltd, a subsidiary of BeE Inc of Canada, is issuing a further 22 million $1.00 ordinary shares to BeE Inc to finance its loans to, and shares in, Clear Communications Ltd. Clear Communications, which is half owned by two North American transnationals, has set itself up to pick the eyes out of the telephone and data communications market in this country, in competition with Telecom. Clear's shareholders are Bell Canada Enterprises (BeE), MCl Communications (U.S.), Todd Corporation, and Television New Zealand (25% each), with New Zealand Rail representation on the board to recognise its contribution of optical fibre links. It is interesting that the Bell companies are involved in both Clear and Telecom. Though anti-trust actions in the U.S, are supposed to have made them independent companies, there is no certainty that they will act independently outside the U.S.

Juken Nissho Ltd of Japan continues the process of setting up facilities relating to the forest rights it has purchased. It has bought 11 hectares of rural land near Carterton (north-west corner of Norfolk Road and State Highway 2) land for approximately $150,000. Juken Nissho "proposes to construct a mill on the land (estimated cost $40 million). The mill will be purpose built to undergo sawmilling, processing laminated veneer lumber and laminated lumber." Timber will come from Ngaumu and elsewhere. It has also acquired a total of 25.1005 hectares of rural land in the Turanganui Survey District for approximately $738,000, "to set up a mill to produce principally timber and plywood products."

Adis International Ltd, a subsidiary of Dun and Bradstreet Corporation (U,S.) is being sold to its New Zealand management, who are setting up a Hong Kong based holding company called Cabras Investments Ltd, to be renamed Adis Holdings (N.Z,) Ltd. "The Commission is advised that this proposal will enhance the financial position

of the Adis group and improve efficiency in operational areas." We are sure tax avoidance will do that for its new owners. But what will it do for New Zealanders?

Ford Motor Company of New Zealand Ltd, which is 99.9% owned by Ford (U.S.) subsidiary Ford Motor Company of Canada Ltd has converted "a large sum of money" advanced as a loan into 8,117,015 $2 shares.

And Banque Indosuez is buying up a number of its local subsidiaries so they can be run as a branch operation. They are: Banque Indosuez New Zealand Ltd, Descartes Securities Ltd, Precis (No.3) Ltd, Odysseus Securities Ltd, Indosuez Nominees Ltd.

In mining, Goodman Fielder Wattle subsidiary, Goodman Mnnhlg Ltd is getting out of the Waihi Martha Hill Mining Project. Its former partners, WeUcome Gold Mines Ltd (owned by ACM Gold Ltd, Australia), Amax Gold Mines New Zealand Ltd (owned by Amax Gold Inc, U.S.), and Auag Resources Ltd (owned by Mineral Resources Ltd, Australia) are buying it out for a sum deleted by the Commission.

A partnership between a Singaporean and a New Zealander is buying up pieces of land near Queenstown to operate a 87.915 hectare golf course "which will be available for domestic and international golfers alike." Rural land from five farmers (including the local partner) has been purchased for a total of approximately $514,000. The reason .for accepting the application: "That due to the down-turn in farming income and the general recession over the past few years, the five vendors have found it necessary to real.ise some assets. They are amalgamating aprts of their properties t.o form one area which is approved as a golf course. Endeavours to refinance and to sell the property within New Zealand have not been successful."

Another Japanese buyout of its raw material supplier is evident in the acquismon of a 50% shareholding in Southern Wasabi Ltd by two Japanese companies, Tominaga Boeki Kaisha Ltd and Marui K.K. (70% owned by Yasuji Iguchi). Each company has 25% of Southern Wasabi, costing them $400,000 each. Southern Wasabi "has successfully completed their first commercial harvest (of Wasabi) and successfully exported to Japan the resultant crop. The vendors see a clear path for future expansion. However, they feel the success of the venture is dependent on the benefits that will be provided by the applicants, including supply of plant, material, technical expertise and guaranteed market access."

At Hororata near Christchurch, approval has been given to sell three farms totalling 2124.5011 hectares to a Japanese owned company. The company, Venden Pty is owned by Mr Hatchi Okamoto. His "Australasian business manager", Mr Kato, previously owned 24 per cent of each of the three properties. One of the three farms is called "Grasslands" and the other two are adjacent to this one. A "Christchurch residential property" is also owned by the company.

Telecom and its subsidiaries have been given retrospective blanket clearance to acquire any rural land costing $10,000 or less.

In other rural land, a U.S. company, Kiripaka Partnership is buying a 576.6245 hectare rural property on the Whirford-Maractai Road, South Auckland, for US$5 million, to develop it "into a top class multi-use resort complex aimed at both the local and overseas tourist markets" creating "numerous jobs"; a Taiwanese resident with a permanent residence permit in Aotearoa, has bought a 4.8562 hectare property in Thomas Road, East Tamaki for $750,000, intending "to reside on the property on a full-time basis"; a U.K. resident has acquired a 515.9741 hectare farm near Masterton owned by Rawhiti Farm Ltd (approval had been given in February for acquiring 80%); Taiwanese citizens, most of whom have been granted permanent residence status, are

- 15 -

buying a hectare block of rural land in Gulbransen Road, Huapai, from an

elderly couple in order to establish a herb farming operation.

Index to December 1990 to March 1991 Decision Sheets

Index compiled by CAFCA

Three deletions were made by the OlC from the December 1990 release, and one decision sheet was altered. Twenty-five were released.

Eleven deletions were made by the OIC from the January 1991 release, and one decision sheet was altered. Twenty-four were released.

Two deletions were made by the orc from the February 1991 release, and two decision sheets were altered. Thirteen were released.

Fourteen deletions were made (at least one a decision in its entirety) by the orc from the March 1991 release, and two decisions were altered. Forty-four were released.

Company/lndividu_!l:::,:I:.___ ...:D:;.;3=.:t;.:;.e .::..P_:::a=ge

ACM Gold Ltd (Australia) Acra Properties Ltd Addendum Investments Ltd Adis Holdings (N.Z.) Ltd Adis International Ltd (U.S.)

Albert St, Auckland, Pacific Tower, 23-29 Albert St All Nippon Airways Ltd (Japan)

All Nippon Airways Ltd (Japan)

All Nippon Airways Trading Co Ltd (Japan) All Nippon Airways Trading Co Ltd (Japan) Alstone Holdings (NZ) Ltd

Althaea Properties Ltd (various)

Altmura Investments Ltd

Amax Gold Inc (U.S.)

Arnax Gold Mines New Zealand Ltd (U.S.) ANA/TC Marlborough Cherry Company Ltd ANA/TC Marlborough Cherry Company Ltd Aptitude Investments Ltd

Asia Pacific Breweries Ltd (Singapore) Atlantic Union Oil Company (NZ) Ltd (U.S.) Auag Resources Ltd (Australia)

Auckland, Mid City One

Auckland, Newmarket, 100 Carlton Gore Road Auckland, Pacific Tower, 23-29 Albert St

Auckland, South, Whitford-Maraetai Road, 576.6245 ha rural property Aupouri Forest, near Kaitaia, Crown Forest Licence and assets, excl, land Baker Developments

Bancorp Holdings Ltd

Bank of New Zealand

Banque Indosuez (France)

Banque Indosuez New Zealand Ltd (France) Barwon Ltd (Japan)

BCE Inc (Canada)

Bell Canada International (N.Z.) Ltd (Canada) Bell Canada International Inc (Canada)

Belves Investments Ltd (Australia)

Benjamin Developments Ltd

Blenheim, Marlborough, 16.172 ha, cherry farm Blenheim, Marlborough, 16.172 ha. cherry farm Bomar, Clifton Patrick Jnr (U.S.)

Bream Bay Farms Ltd

Mar 91 Jan 91 Mar 91 Mar 91 Mar 91 Jan 91 Dec 90 Feb 91 Feb 91 Dec 90 Mar 91 Mar 91 Jan 91 Mar 91 Mar 91 Dec 90 Feb 91 Jan 91 Feb 91 Feb 91 Mar 91 Mar 91 Mar 91 Jan 91 Mar 91 Dec 90 Mar 91 Jan 91 Mar 91 Mar 91 Mar 91 Feb 91 Mar 91 Mar 91 Mar 91 Dec 90 Jan 91 Feb 91 Dec 90 Jan 91 Jan 91

10

68

3 83,97 83

65

37

70

70

37

4

4

50

11

11

37

70

48

77

78

12

4

98

65

92

31, 32, 33 98

52

3,4

5-7

5-7

71, 73 85,86 85,86

86

41

65

70

37

67

67

~ 16 -

Company/Individual

Date Page

Jan 91 53~S6
Feb 91 72.77
Mar 91 87-91
Jan 91 58
Dec 90 40
Dec 90 40
Dec 90 44
Dec 90 36
Mar 91 83,97
Mar 91 99
Feb 91 76
Feb 91 76
Mar 91 99
Feb 91 76
Mar 91 99
Mar 91 8
Feb 91 73
Mar 91 82
Mar 91 3,4
Dec 90 35
Dec 90 40
Jan 91 48
Jan 91 68
Mar 91 1
Mar 91 100
Mar 91 3,4
Mar 91 85
Jan 91 64
Jan 91 64
Jan 91 60
Jan 91 59
Feb 91 76
Dec 90 34
Jan 91 49
Dec 90 38, 42.43
Feb 91 74
Feb 91 76
Feb 91 76
Jan 91 58
Mar 91 6
Mar 91 83
Dec 90 31
Mar 9i 84
Feb 91 74
Dec 90 30
Mar 91 98
Feb 91 79
Mar 91 3
Mar 91 82
Feb 91 79
Dec 90 42
Mar 91 87-91
Mar 91 80
Mar 91 80
Mar 91 80
Mar 91 82
Mar 91 3
Dec 90 28,29
Dec 90 28.29
Dec 90 41.46
Dec 90 41,46
Dec 90 41,46
Dec 90 34
Jan 91 49
Mar 91 86
Mar 91 1O~12 Brierley Investments Ltd Brierley Investments Ltd Broomfield, David Benjamin Broring, Dieric

Buttle Wilson Group Ltd Buule Wilson Ltd

BY Rentokil Funding (U.K.)

C. B. Norwood Distributors Ltd

Cabras Investments Ltd

Cadbury Confectionery Ltd

Cadbury Confectionery Ltd (U.K.)

Cadbury Schweppes Hudsons Ltd (U.K.) Cadbury Schweppes Investments B V (U.K.) Cadbury Schweppes PLC (U.K.)

Cadbury Schweppes PLC (U.K.)

Cartenon, 11 ha. rural land, NW cnr Norfolk Rd and State Highway 2 Cecil Peak Station, 13,685.66 ha., Lake Wakatipu

Chase Corporation Ltd

Chase group

Chen, Tzu-Wang and Chang Shui-Ching (Taiwan) Chepstow Nominees Ltd

Chief Resources Ltd (Japan)

Chiew Guat

Christchurch residential property (Japan) Christensen, Mr and Mrs

Christiana Bank og Kreditkasse

Clear Communications Ltd

Coles Myer Ltd (Australia)

Coles Mycr New Zealand Holdings Ltd (Australia) Continental Shelf Company (No. 158) Ltd

Corbans Wines Ltd

Corlette Pty Ltd (Australia)

Coromandel, Waikawau, 1743 ha. farm

Cyprus Gold New Zealand Ltd

Daller Developments Ltd

De Boer, G. J. M. and M. H. (Netherlands) Defiance Enterprises Ltd (Australia) Defiance Mills Ltd (Australia)

Delta Agriculture Ltd (Lichtenstein) Descartes Securities Ltd (France)

Dun and Bradstreet Corporation (U.S.)

Dunback, Makareao Quarry, Moeraki, 167.0846 hectares East Tamaki, Thomas Road, 4.8562 ha. rural property Edendale, Southland, 38.0708 ha. farm on Main Road Elders IXL Ltd

Equiticorp Financial Services Ltd

Fairlie, South Canterbury, Stanton Station, Stanton Road, 1518.1542 ha, farm Falchion Investments Ltd (various)

Farmers Trading Company Ltd

Farnsway Mining (NZ) Ltd (Australia)

Pernz Corporation Ltd

Fong, Peter (Singapore)

Ford Motor Company (U.S.)

Ford Motor Company of Canada Ltd (U.S.)

Ford Motor Company of New Zealand Ltd (U.S.) Fountain Securities Ltd

FTC Centre, Hamilton

Fuji Photo Film Co. Ltd (Japan) Fuji Xerox Company Ltd

General Accident Life Assurance Corporation PLC (U.K.) General Accident Life Holdings Ltd (U.K.)

General Accident Pacific Ltd (U .K.)

Gift, Roland (U.K.)

Golden Cross Mine, Waihi

Goodman Fielder Industries Ltd

Goodman Fielder Wattie

" 17 -

Goodman Fielder 'V'I attic (NZ) Ltd Goodman Fielder Wattie Ltd (Australia) Goodman Fielder Watties Finance (NZ) Ltd Goodman Mining Ltd

Government Property Services Ltd Greenall Industries Ltd

Guan Holdings Ltd (Australia)

Guardian Royal Exchange Assurance of New Zealand Ltd Gulbransen Road, Huapai, 4,9164 ha, farm

Hainan Enterprises Ltd (Australia)

Hamilton, FTC Centre

Hatchi New Zealand Ltd (Japan) Hauturu Lime Company Ltd

Hawkes Bay and Marlborough, 134 acres of vineyards Holderbank Financiere Glaris Ltd

Holderbank Financiere Glaris Ltd (Switzerland) Hororata, "Grasslands" 913 ha. farm (Japan) Hororata, 524,7597 ha. farm (Japan)

Hororata, 686,7414 ha. farm (Japan) Horowhenua, Kohitere Forest, 670 ha.

Huapai, Gulbransen Road, 4,9164 ha. farm Indosuez Nominees Ltd (France)

Institute Bancario San Paolo Di Torino

Italian International Bank PLC

ITT Rayonier Ltd (U.S.)

Jims Way Properties Ltd

Juken Nissho Ltd (Japan)

Juken Nissho Ltd (Japan)

Juken Nissho Ltd (Japan)

Juken Sangyo Co Ltd (Japan)

Juken Sangyo Company Ltd (Japan) Kaipara Head, Redhill Deer Farm, 203 ha, Kaitaia, Triboard mill and forestry rights Kao Sien Fu (Taiwan)

Karioi Forest, Central N, Island, Crown Forest Licence and assets excl, land Kathman-Broring, 1.

KaLO, Mr (J apart)

Kerslake, Mr

Kinloch Station, 885,0559 ha,

Kinugawa Kenko Hotel Suirnei Co, Ltd (Japan) Kiripaka Partnership (U ,S .)

Kiwi Nature Supplies Ltd (Taiwan)

Kohitere Forest, 670 ha. Horowhenua Kyowa Hakko Kogyo Company Ltd (Japan)

Lake Wakatipu, Cecil Peak Station, 13,685,66 ha. Lang, Mrs E, J,

Lang, Mrs E,. J,

Lin, Chun-Feng and Chen Hsueh-Mei (Taiwan) Lindsay, W, M, (U.K.)

Lindsay, W,M, (U.K.)

Lion Nathan Ltd

Lip Tong (Singapore)

Liue, Mr Chin-Haien (Taiwan)

Looi, Eng See, Eng Soon, and Tang (Singapore) Lucrative Investments Ltd

Lyttelton Port Company Ltd

Mac Dow Properties (1988) Ltd

Magnum Corporation Ltd

Makareao Quarry, Dunback, Moeraki, 167.0846 hectares Mangawhai Heads, 459 ha. of rural land

Marlborough, 16.172 ha. cherry farm

Marlborough, 16.172 ha, cherry farm

Marlborough and Hawkes Bay, 134 acres of vineyards Martha Ifill Mining Project, Waihi

Marui K.K (Japan)

Masterton, 515,9741 ha, farm

Dec 90 Dec 90 Mar 91 Mar 91 Jan 91 Dec 90 Dec 90 Feb 91 Mar 91 Jan 91 Mar 91 Mar 91 Dec 90 Jan 91 Dec 90 Mar 91 Mar 91 Mar 91 Mar 91 Jan 91 Mar 91 Mar 91 Mar 91 Mar 91 Jan 91 Mar 91 Dec 90 Jan 91 Mar 91 Dec 90 Mar 91 Jan 91 Jan 91 Jan 91 Jan 91 Jan 91 Mar 91 Dec 90 Feb 91 Mar 91 Mar 91 Mar 91 Jan 91 Jan 91 Feb 91 Feb 91 Mar 91 Dec 90 Feb 91 Mar 91 Feb 91 Jan 91 Mar 91 Jan 91 Dec 90 Jan 91 Jan 91 Feb 91 Pec 90 Jan 91 Dec 90 Feb 91 Jan 91 Mar 91 Mar 91 Mar 91

30

30

86 10-12 60 42,43 41

69 100 60

3

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59

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4

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2

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49 100

7

3,4 3,4 49 87-91

31, 32, 33 61

8, 9

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3

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59

73

75

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10-12 94,96 95

Date Page
Feb 91 75
Jan 91 65
Dec 90 42
Mar 91 2
Jan 91 50
Mar 91 4
Mar 91 4
Dec 90 31,42
Mar 91 4
Mar 91 4
Jan 91 58
Mar 91 12
Feb 91 78
Mar 91 97
Mar 91 97
Feb 91 78
Feb 91 78
Dec 90 31
Feb 9'1 77
Mar 91 3,4
Jan 91 51
Jan 91 48
Mar 91 3,4
Dec 90 42
Jan 91 55
Mar 91 98
Dec 90 32, 33
Dec 90 31, 32, 33
Mar 91 8,9
Jan 91 61
Jan 91 63
Jan 91 62,63
Jan 91 62.63
Jan 91 62,63
Jan 91 62
Dec 90 41
Dec 90 41
Dec 90 36
Mar 91 7
Mar 91 3
Mar 91 3
Feb 91 71, 73
Mar 91 1,2
Dec 90 39
Dec 90 31, 32, 33
Dec 90 30
Jan 91 65
Jan 91 58
Jan 91 60
Mar 91 1
Jan 91 67
Mar 91 3,4
Jan 91 58
Jan 91 51
Jan 91 51
Feb 91 73
Dec 90 40
Mar 91 6
Jan 91 64
Dec 90 32,33
Jan 91 68
Mar 91 87
Mar 91 90
Mar 91 89
Mar 91 88
Mar 91 91 Masterton, Rawhiti Farm Ltd, owns 515.9741 ha. farm McConnell Dowell Corporation Ltd

McDonalds Lime Ltd

Meadowflower Properties Ltd (Japan) Mei-Jin Lin (Taiwan)

Mid City Centre Ltd

Mid City One, Auckland

Milburn New Zealand Ltd

Milburn New Zealand Ltd

Milburn Unit Trust

Miller, J,Z.

Mineral Resources Ltd (Australia) Mobil Corporation (U.S.)

Mobil Corporation (U.S.)

Mobil New Zealand Finance Corporation

Mobil New Zealand Finance Corporation (U.S.) Mobil Petroleum Company (U.S.)

Moeraki, Dunback, Makareao Quarry. 167.0846 hectares Mungam Holdings Ltd (Singapore)

National Australia Bank Ltd

National Bank (U.K.)

Naturally Yours Ltd (Japan)

Nederlandsche Middenstandsbank MY

New Zealand Steel

New Zealand Stevedoring Company Ltd (Australia) Newmarket. Auckland, 100 Carlton Gore Road

Ngaumu Forest, Crown Forest Licence and assets, excl. land Nissho Iwai Corporation (Japan)

Nissho Iwai Corporation (Japan)

Northern Pulp Ltd

Norwich Union Holdings (NZ) Ltd (U.K.) Norwich Union Life Insurance Society (U.K.) Norwich Winterthur (NZ) Ltd (U.K.)

Norwich Winterthur Holdings Ltd (U.K.) Norwich Winterthur Overseas Ltd (U.K.)

NZI Corporation Ltd (U.K.)

NZI Group New Zealand Ltd (U.K.) Odysseus Commodities Ltd Odysseus Securities Ltd (France) Okabe Enterprises Ltd (Japan) Okabe Group (Japan)

Okakura, Mr Saburo (Japan) Okamoto, Mr Hatchi (J apan)

Opua, 350 sq m. of rural land

Otangaroa Forest, near Kaitaia, Crown Forest Licence and assets, excl. land Pacific Cereals Ltd

Pacific Tower, 23-29 Albert St, Auckland

Pelorus Sound, Pohuenui Station, 2,102 ha.

Perfect Match Investments Ltd (Hong Kong) Peterborough Property Holdings No.2 Ltd (Japan) Phoenix Capital Enterprises Inc (U .5.)

Pittsburg National Bank

Pohuenui Station and Island Resort Ltd (Lichtenstein) Port Finance Investments Ltd

Port Finance Ltd

Portrnore Enterprises Ltd (British Virgin Islands) Potter Warburg N.Z. Ltd (Australia)

Precis (No.3) Ltd (France)

Price Point Franchising Pty Ltd (Australia)

Putunarnu Forest, near Gisborne, Crown Forest Licence and assets, excl, land Pyes Pa Road, Tauranga, 4.7373 ha. market garden

Queenstown, 18.21 ha. farm land

Queenstown, 2.023 ha. farm land

Queenstown, 2.17 ha, farm land

Queenstown, 20.5120 ha. farm land

Queenstown, 45 ha. farm land

~ 19 -

course on 87.9"15 ha, farm land

Rank Xerox Ltd .K.)

Rank Xerox Nc\'I' Zealand Ltd Rawhiti Farm Ltd

Rawhiti Farm owns 515.9741 ha. farm near Masterton

Rayonier New Zealand Ltd (U.S.)

Redhill Deer Farm, 203 ha., Kaipara Head Redpath, J.S. Redpath Holdings Inc (Canada)

Rentokil PLC (U.K.)

Rentokil Ltd

Rentokil O'Seas Holdings Ltd (U.K.)

Rotorua, Endean Road, Paradise Valley, 20.7250 ha, farm Rotorua, farm land including 54.74 ha. zoned rural

Ruaig Investments Ltd

S. E. A. Holdings Ltd

S. E. A. Trae Holding Ltd

Sainte Neige Export Wines Ltd Sano, Kunio and Kumiko (Japan) SBSA (NZ) Holdings Ltd (Australia) SBSA (NZ) Ltd (Australia)

Selpam (Australia) Pty Ltd

Societe Generale Australia Ltd

South Auckland, Whitford-Maraetai Road, 576.6245 ha rural property South Pacific Passenger Services Ltd (Australia)

Southern Cross Assurance Company Ltd

Southern Wasabi Ltd

Southland, 38.0708 ha. farm on Main Road, Edendale Southstate Holdings Ltd (Australia)

Stanton Station, Stanton Road, Fairlie, South Canterbury, 1518.1542 ha, farm State Bank of South Australia

State Bank of South Australia (Australia) Stevens KMS Corporation Ltd

Stevens KMS Equities Ltd

Sun Alliance Group Pic

Sun Alliance Pic (UK)

Sun Alliance Insurance Ltd

Sun Alliance Insurance Overseas Ltd (U .K.) Sun Alliance Life and Superannuation (U.K.)

Syndac Ltd

Tamaki 4.8562 ha, rural property

Tauranga, Pa Road, 4.7373 ha. market garden

Taylor's Lime Co Ltd Taylors Lime

Telecom Cellular .S.)

Telecom of New Zealand Ltd

Telecom of New Zealand Ltd (U.S,)

Thomas East Tamaki, 4.8562 ha. rural property

Thompson, A.D. and N.E. (Australia)

Three Stone Ltd

TNT Ltd (Australia)

Tominaga Boeki Kaisha Ltd (Japan)

Tominaga (Japan)

Triboard Holdings Ltd

Turanganui Survey District, 12.4238 ha, and 12.6767 ha. of rural land Union Shipping Group (Australia)

Union Shipping New Zealand Ltd (Australia)

Union Steam Ship Company of New Zealand Ltd (Australia) Union Travel Ltd (Australia)

Venden (Japan)

Verisopht Vidon Vladi, E Waihi, Golden Cross Mine

Martha J-IIll Mining Project

Ltd (Hong Kong) Ltd (Australia)

Mar 91 Jan 91 Dec 90 Dec 90 Dec 90 Mar 91 Feb 91 Jan 91 Jan 91 Jan 91 Dec 90 Dec 90 Dec 90 Dec 90 Dec 90 Mar 91 Feb 91 Dec 90 Jan 91 Dec 90 Dec 90 Mar 91 Dec 90 Mar 91 Mar 91 Jan 91 Dec 90 Mar 91 Feb 91 Dec 90 Feb 91 Mar 91 Dec 90 Dec 90 Dec 90 Feb 91 Jan 91 Feb 91 Jan 91 Jan 91 Mar 91 Mar 91 Jan 91 Dec 90 Mar 91 Dec 90 Mar 91 Dec 90 Mar 91 Feb 91 Dec 90 Jan 91 Mar 91 Mar 91 Jan 91 Mar 91 Jan 91 Jan 91 Jan 91 Jan 91 Mar 91 Feb 91 Mar 91 Jan 91 Jan 91 Mar 91

87~91

49

29

28.29

28

95

75

49

48

49

44,45 44,45

45 38,42,43 35

92

n

36

59

38, 42, 43 41

80-82

36

3,4

92

53-56

46

93-95

74

41

79

80-82

41

36

36

69

57

69

57

57

80-82

84

68

31

4

39

98

39

84

79

34

53-56 93,95

95

61

9

53-56

56

53

54

1,2

72

81.82

58

49

10-12

- 20 -

Coml!anyllndividl.lal

Waikawau, Coromandel, 1743 ha. farm Waitemata, 11.579 ha, kiwifruit orchard Welcome Gold Mines Ltd (Australia) Westpac Banking Corporation

Westpac Banking Corporation (Australia)

Wharerata Forest, near Gisborne, Crown Forest Licence and assets, excl. land Whitford-Maraetai Road, South Auckland, 576.6245 ha rural property Winstone Pulp International Ltd (Hong Kong)

Worn, Rodney Hamish

Yaonan Tong Soo Gee

Yauji Iguchi (Japan)

Compiled by:

Campaign Against Foreign Control of Aotearoa, P O. Box 2258,

C hristchurc h.

Date Page
Dec 90 34
Jan 91 50
Mar 91 10
Mar 91 4
Jan 91 60
Dec 90 32,33
Mar 91 92
Jan 91 60
Jan 91 67
Jan 91 68
Mar 91 94,96 Index to 1990 decisions

A consolidated index to the Overseas Investment Commission decisions, December 1989 to December 1990 inclusive, is available from CAFCA. The index was prepared by CAFCA. The cost (including postage) is $5.00 for individuals, $25.00 for institutions.

l ~

sales to overseas interests

1

Recently in the Press, 22 March 199 the Minister of Lands, Rob Storey. commented on increasing concern at rural land sales to foreigners. He suggested new rules, and that a single consent authority should have the power to approve sales of land to overseas buyers. Such sales currently require the consent of up to three authorities - the office of Crown Lands, the Overseas Investment Commission, and the Minister of Lands.

Storey said the new criteria for sales to foreigners should reflect the basic principle that foreign investment was welcome in New Zealand providing its social and economic benefit to New Zealand could be established.

He attempted to allay what he called "a common misconception about the number of actual sales of land to foreign buyers." He quoted figures for the years 1986 to 1989, apparently showing there were between 33 and 44 in each of those years.

Overseas Investment Commission decisions released to the Campaign Against Foreign Control of Aotearoa show that in the period December 1989 to January 1991 there were decisions approving 133 changes in ownership or control of rural land, including 26 in forestry.

In addition, there is evidence that significant rural land sales are evading the regulatory controls. Property (December 1990) and the Listener and TV Times (8 April 1991) give the example of the 567 hectare Kaikoura Island in the Hauraki Gulf near Great Barrier Island being sold to American property developers for $2.47 million, 'The new owners, based in Honolulu (Thomas Henry Harvey Jay Migdal) "exploited loopholes in foreign investment regulations to escape public and official scrutiny" according to NZ Property. They

escaped because, due to a town planning oversight, the island is not in any

District Scheme, therefore not zoned rural. Pakatoa Island (24 hectares, currently on the

market as of the collapsing Pacer Kerridge group's asset sales) has been sold to "wealthy

Germans I " to the Listener and TV Times under same loophole. NZ Property

mentions December being marketed as "a perfect corporate

or personal as being in the same Unless they are sold as part of a company

worth $ or more, the Ole has no jurisdiction over such pieces of land. Even worse,

the not apply to sales of shares in a company even if the company

owns according to the Listener TV Times. further example turned up among

the January 1 decisions: four Singaporean citizens who already owned a market garden

business were given approval to purchase (for $378,840) a 4.7373 hectare market

garden at Pyes Tauranga, on condition that they obtain permanent residency within

twelve months, It was noted that purchase of their market garden did not need Commis-

sion it was not situated on rural land.

A

approved by the Commission do not cause concern if the overseas out their undertakings. They involve individuals overseas who have residence and intend to farm the blocks involved.

Venture Trust, which, according to Storey, has undertaken to spend at

UllUA",'" developing tourist facilities on the island over the next two years. He public access to beaches would continue and facilities would be Zealanders and overseas interests. Other conditions "will ensure that "_"w'IA.U'.HU interests will have an opportunity to purchase the island should it come the future". (Press, 20 April, 1991.)

are for restructuring of existing operations, revealing no effective change.

However a number of disturbing trends are evident.

There is a growing number of examples of overseas concerns, mainly Japanese, buying farming ventures in Aotearoa in order to guarantee their sources of supply. Examples include a 16 hectare cherry farm near Blenheim. ANA/TC Marlborough Cherry Company Ltd. which is 50% owned by All Nippon Airways Trading Co Ltd, was given approval to buy the in December last year. The Ole's reason for approval: "The New Zealand cherry industry was and remains dependent to a substantial degree upon the Japanese market for its ongoing viability. It was seen as important by the vendors to secure by the establishment of a joint venture operation, an ongoing ability to both export fruit to Japan but also secure airfreight access to Japan at times of peak demand,"

In another example. in September and October last year, two Japanese companies. Ryukyu Meat Co. Ltd of Japan and Heimat Company Ltd, were given approval' to purchase Ototoa Station. a 280.294 hectare deer farm at South Kaipara Head, In both instances, the reason the OIC gave for approving the transactions was that the companies had been importing deer products from Aotearoa for some time, but wanted to guarantee their sources of supply.

Japanese ownership of beef farms provide further examples.

The problems these ventures give rise to include reducing the Japanese market for these products for competing locally owned farms, reduced net return in overseas earnings because of transfer pricing and remittance of profits overseas, and dependence on a specialised market, recalling meat producers' dependence on the U.K. market until the 1960's.

The success of the wine industry makes vineyards another target of overseas ownership. February 1990, Uchihara Country Club Ltd of Japan acquired the Hotel Du Vin and De Redcliffe Estates Ltd for $10.7 million "as complimentary to its existing country club operations in Japan and also sees excellent opportunities to export New Zealand wine to Japan." In May the same year, the Australian company The Rothbury Estate Ltd bought 50% of two vineyards in Cloudy Bay. In January this year, another vineyard became Japanese controlled. Sainte Neige Export Wines Ltd became 60% owned by Kyowa Hakko Kogyo Company Ltd of Japan, with the majority of the remaining shares held by Corbans Wines

It was previously 24% owned by Kyowa; the extra 36% was reported by the Commission to have been purchased for $3,600. Sainte Neige owns and operates vineyards, and exports wine from 134 acres of rural land in Hawkes Bay and Marlborough. "It is claimed new technology

expertise will be introduced. Kyowa has assured Sainte access to overseas markets," said the Commission. It may also be another case Df a foreign company which would otherwise buy from local wine-makers, sewing up its sources of supply.

Foreign corporate-owned farming is also making an appearance. New Zealand Farmlands Ltd, jointly owned by National Mutual Life Association of Australasia, AMP Society. Prudential Assurance CD Ltd, Norwich Union Life Assurance Ltd, Countrywide Banking Corporation Ltd, and Colonial Mutual Life Assurance Society Ltd now own farms in the northern Wairarapa, Hawkes Bay, Reporoa and Southland, totalling some 6,800 hectares. As well as affecting land prices, the fact that the shareholders of this company may wen be lenders to potentially competing farmers will be of concern. Other foreign farming companies have adso made purchases, Austral Read Farms Ltd (Australian owned) owning five farms totalling 2357 hectares near Palmerston North being a further example.

A significant number of the sales are approved because the vendor wanted to sell amd could

find no reduced

asked. Overseas buyers may be holding up farm prices when mcomes .:nnYl.. .. u be reducing land values and making land more affordable to new

town

of the rural land market however. 'The heated controversy over the to Japanese interests also involved 147 hectares of rural land; news, the Millbrook Country Club at Lake Hayes near Queenshectares. The sale to overseas interests of the Tourist Hotel Corpor-

alienated rural land. In addition mining is taking farmland out of in Coromandel and Westland.

But probably the blocks of rural land at present falling under foreign control are forests. Many are coming under overseas control by the sale of Crown Forest Licences and assets, excluding control of the land certainly exists for the several decades of the Licences. In addition, several tens of thousands of hectares of forest land is now owned outright by overseas interests. The oil companies have large holdings. Shell via its subsidiary

Baigents has, addition to Baigents' own substantial plantings, Crown Forest Licences

covering at least hectares. BP has forestry holdings in its own right, and was granted

approval to buy a further 10,000 hectares at East Cape. Another significant foreign controlled forestry company is Nelson Pine Forests Holdings Ltd, now 50% owned by Sumirin (NZ) Ltd of Japan, 50% by Newmans, owns 4100 hectares of forest in the Nelson/Marlborough area. The Japanese Juken Nissho Ltd has approval for Crown Forest Licences covering some 38,000 hectares in the North Island. In January this year, Wins tone Pulp International

(Hong Kong was given approval to acquire the Crown Forest licence and assets

(excluding the hectares of land) of the Karioi Forest. Winstone and its Korean partner,

Samsung, pulping Karioi Forest for some time. The same month, ITf gained

approval to a stake in our Subsidiary ITT Rayonier New Zealand Ltd was given

approval to the Kohitere Forest, Horowhenua, including 670 hectares of land. lIT is

notorious in the downfall of the Allende government in Chile; it already has other

interests

of forest resources have been widespread. They include environaccess to recreational land, conservation and replanting. Of equal same questions that arose in the sale of farms to the potential customers of of markets to other local producers, the reduction of net export returns, overseas, In forestry, the loss of employment opportunities the timber is another major concern.

Compared the recent .U"""""'''" welcome,

These the doing the

Telecom and Goodman Fielder Watties, land sales are a small part of Aotearoa assets overseas. Storey says that foreign investment is and economic benefit to New Zealand could be established. Ii evidence that the Overseas Investment Commission and regulating land sales to overseas interests are simply not

Overseas Investment Commlsslon Deelsions affecting rural land

December 1989 to January 19911

I Albany, 4.0369 ha, deer RD 2

2 Auckland, Silverd1)le, 8.0954 ha, of rural land

3 Barrytown, 87 ha, farm on Stare Highway 6

4 Brdy of Islands, Kerikeri, Purerua Road, 508.4679 ha, rural land

5 P,ay of Islands, farms

6 Yday of Islands, 11.53215 ha, residential retreat farm (llamas)

Aug Aug 90 Aug 90 Nov 90 Sep 90 Sep 90

52 37 12 84 56

Nov 90 9

Dec 89 33

Dec 90 37, Feb 91 70

Dec 89 42

Jan 91 67

Nov 90 9

Sep 90 85

May 90 54

Feb 91 73

Oct 90 97

May 90 29

May 90 30

Aug 90 44

Dec 90 34-

J1.ID 90 78

J1.ID90 79

J1.ID90 79

May 90 28

Aug 90 46

Aug 90 39

Feb 90 61

Mar 90 97

Feb 90 64, 65

Feb 91 74

Mar 90 95

Feb 91 79

Feb 90 68

Aug 90 53

Aug 90 43

Mar 90 85

May 90 51

Jan 91 59

Jul 90 10

Jul 90 100

Sep 90 57, 60

Jul 90 22

Sep 90 84

JuI 90 28, Jm 91 48

Aug 90 30,38

Aug 90 30,38

Nov 90 11

Oct 90 93,94

Aug 90 30,38

Aug 90 40

Jan 90 42

May 90 41

May 90 32

Feb 90 6~.

Jan 91 67

Jan 90 44, 45

Apr 90 20, 21

Jan 91 59

Feb 90 62

Jul 90 17

Sep 90 64

Feb 91 75

Nov 90 10

Jul 90 22

Nov 90 20

May 90 42,59

J1.ID90 70

Dec 90 39

Mar 90 84

Jan 90 44,45

May 90 58

Dec 89 32

Mar 90 96, 97

Dec 89 87

Mar 90 84

J1.ID 90 69, 72, 73

Nov 90 13

May 90 52

'M,l.!"'n~;II. 4.2340 ha, rural property in Waihi Road at Garston)

ha, cherry farm Central Road, South Waitakaruru Fanus Uti

4304242 ha, thoroughbred farm n."""-".",L 4.0468 ha, of rural land

14 63.1795 ha farm

15 Cecil 13,685.66 ha., Lake Wekaripu

16 Cheviot, 408.0344 ha, farm in Kaiwara Road, Ethelton

17 13.912 ha, of land to developed for viticulture

18 !t055 ha, of land to developed for viticulture

19 Trust Joint Venture gold mining (378 ha. rural land)

20 Coromandel, Waikawau, 1743 ha, farm

21 Corornandel, Waitekanri Valley, 135.6745 ha, farm land. mineral exploration 22 Coromandel, Waitekauri Valley, 3 ha, Crown land, for mineral exploration 23 Coromandel, Waitekauri Valley, 364.2682 ha, farm land, mineral exploration 24 Cust, North Canterbury, 324.001 ha, farm property/tourist farm

25 Dannevirke, 171.5512 ha, rural property. Rakaiatia Road, Makotuku

26 97.0739 ha, dairy farm .

27 Mangahei Road (farm)

28 Canterbury, Loch Maree (184.1 hectare farm)

29 De Redeliffe Estates Ltd

30 Edendale, 38.0708 ha, farm on Main Road

31 Eltham Road, Eltham (47 hectare farm)

32 Fairlie, South Stanton Station, 1518.1.542 ha, farm

33 Geraldine, rural land on DOWIlll Road

34 Gore, 243,.7487 ha, leasehold rural property

:~5 Hanmer North Canterbury, 1747.7404 ha. farm

36 33.9276 hectare farm

37 Bay, 1179.66 ha, farm in Southern Hawkes Bay

38 Hawkes Bay and Marlborough, 134 acres of vineyards 39 Hobsonville, 6.7 hectare farm

40 Houhora East, 36.4390 hectare farm to develop floriculture 41 Irwell, Lake South Road, Canterbury, 2(9.7443 ha, farm

42 Kaipara Harbour, 130.31 hectares of rural land

43 Keipara Harbour, oyster farms

44 Kaipera Redhill Deer Farm (203 hectare)

45 Kaipara, Helensville, Kaipara Deer Park

46 Kaipara, Helensville, Rangatira Deer Farm

47 Kaipera, Helensville, South Kaipara Head, 71.4 ha, deer farm

48 Kalpara, Ototoa Station, South Kaipara Head, 280.294 ha, deer farm 49 Kaipara Velvet Farm Partnership

SO Kawhia Harbour, 174.0149 ha, farm in Mehia Access Road

51 Koromiko Farm Ltd

52!.,ees North .. "Cromdale" farm (2181.4027 ha.)

53 Lud Valley, Hira, Nelson, ha, rural property

54 North 6.093 hectares of land

55 Heads, ha, of rural land

56 City (rural

57 Manukau, land

and Hawkes 134 acres of vineyards

59 Auckland (from)

60 Marton, 44.775 hectare of rural land in Onepuhi Road 61 Masterton, 277.1'192 ha. farm

62 Masterton, Rawhiti Farm Ltd, owns 515.9741 ha, farm 63 Mataitei, North Auckland, 21.78 ha. rural land

64 Matakohe, 13031 hectares of rural land just south of

65 Mount Mrum:ga."'1l.d, 225.8213 ha. farm in Papamoa Beach Road

66 New PlymOlJlth, 4 U! poultry farm in Brown Road

67 North Auck'iff.!ld, 3.8030 ha, horticultural land for residential subdivision

68 350 sq m. of rural land

69 Track, farmland (1.1 128 hectares)

70 land)

71 Palmerston North. 5 freehold farms. total 2357 ha., 3 leased total 367 ha, n Pelorus So unci farm/tourist operation

73 Purau, Canterbury, Tokanui Farm (331.8926 hectares) 74 Purple Peak Deer Farm, Akaroa

75 Queen Charlotte East Bay, land (1.1470 hectares)

76 Queensto WII, Lake Hayes, 189.6 ha, of rural land

77 Queenstr JWTI, Lake 7961 sq. m, rural land

78 Reporoe i, 133.35 ha,

79 Reporoa, 159.04 ha, farm 80 Reporoa, 16l.87 ha, farm

81 Reporoa, 45.8 ha, horse farm

82 Riverhead, Brighams 4Ji29 ha, fish farm

83 Rotorua, 19.7176 ha, rural land to be used for tourist ventures

84 Rotorua, Endean Road, Paradise 20.7250 ha, farm

85 Rotorua, farm land including 54.74 ha, zoned rural

86 Rctorua: Endean Road Deer Farm

87 South Wairarapa, 7,2735 ha, farm

88 Southland, 267.09 ha, farm

89 Southland, 283.28 ha, farm

90 Southland, 3174.75 ha, farm

91 Tai Tapu, 3.9962 ha, rural property on Old Tro Tapu Rd 92 Takaka Valley, marble quarry on 7.3121 ha, of rural land 93 Tamahere, 4.492 hectares of rural land in Herbert Road

94 Tapanui, Conical Hill sawmill, including 33.14 ha rural land, West Otago 95 Taumanmui, 190.7949 ha, farmland

96 Taupo. 230 hectares rural land

97 Tauranga, 3.6068 ha, kiwifruit farm in Pukemepu Road 98 Taurenga, Pyes Pa Road, 4.86 ha, kiwifruit farm

99 Tawaharanui, Takatu Rd 238.8128 ha, deer farm

100 Te Anau, 142.6 ha, rural property

101 Waimaha, Jones Rei. 446.2165 ha, farm

102 Waira.kei International Golf Course, on 146.7237 ha, rural land 103 Wairarapa. 1426..51 ha, farm in Northern Wairarapa

104 Waitahu - block of rural land

105 Wanaka, 827.6996 ha, rural property

106 Westland, 108.9995 ha, of rural land to be used for ilmenite processing 101 Whakatane asparagus farms owned by Hortcrop Holdings Ltd (119.17 ha.)

~

1 Aupouri Forest, near Kaitaia"

2 Berwick Forest Unit, 13,136.6219 ha., South Island East Coast' 3 East Cape, Southern, up to lO,OOO ha. for forestry

4 French Pass, part of 4103.8959 ha, of afforested land 5 Gordon. part of 4103.8959 ha, of afforested land

6 Hira Forest, Nelson'

7 Kaitaia, Triboard mill and forestry rights 8 Karioi Forest, Central N. Island'

9 Kohitere Forest, 670 ha., Horowhenua

10 Linkwater, part of 4103.8959 ha, of afforested land

11 Lismore Sand forest, east of Wanganui"

12 Marlborough, 240 ha, of exotic forest 13 Nganmu Forest'

14 Otago Coast Forest Unit, 1.0,398.9825 ha,' 15 Otangaroa Forest, near KaitmaO

16 Putunamu forest, near Gisborne"

11 Rintoul, part of 4103.8959 ha, of afforested land

18 Santoft forest, west of north of the l'.Wl)S,!ll"''''1

19 Tangimoana forest, west of Bulls, south of the 20 Tapenui forest, Wesw.

21 Walrnarino Forest

22 Waimea Fore.st,

23 Waimea, part of 4103.8959 ha, of afforested land

24 Whangamoa, part of 4103.8959 ha, of afforested land 25 Whangapoua forest, Coromandel"

26 Wharerata Forest, near Gisbome'

'Crown Forest Licence and assets, excluding land

New Zealand Parmlands Ltd (94.9% overseas owned) Ownership:

National Mutual Life AS!m of Australasia AMP Society

Prudential Assurance Co Ltd

Norwich Union Life Assurance Ltd Colonial Mutual Life Assurance Sty Ltd

Countrywide Corporation Ltd

90 51

May 90 52

May 90 66, Jul 90 16

Sep 90 63

Oct 90 92

Dec 90 38, 42, 43

Dec 90 35

Dec 89 86

Sep 90 86

May 90 53

May 90 53

May so 53

Jun 90 80

Sep 90 83

JuI 90 3

Aug 90 47

Sep 90 57

Feb 90 56,57

May 90 57

Nov 90 9

May 90 50

Aug 90 48

May 90 48

Sep 90 55

May 90 50

Jan 90 41

May 90 48

May 90 60

May 90 41. 42

Dec 90 Oct 90 Sep 90 May 90 May 90 Nov 90 J!Ul 91 Jan 91 Jan 91 May 90 Aug 90

90 90 Oct 90 Dec 90 Dec 90 May 90 Aug 90 Aug 90 Aug 90 Feb 90 Nov 90 May 90 May 90 Aug 90 Dec 90

May 90 May 90

31, 32, 33 96,97

87

49

49

:3

61

60

49

49

47

56,59 32,33 96,97

31, 32, 33 32, 33

49

47

47

47

58

:3

49

49

47

32,33

44, 50-54, 65-66 65

- by Rob steven. llan 30 • 35 starl

from Cnivers! of canterbury Bookshop for $49).

lable

Horton.

The Western world is currently assiduously studying Japanese capitalism, most recently in an 8 part TV series, but always from the perspective of lilearning from its success II • Increasingly Japan is presented as a model to be emulated.

Rob Steveng senior lecturer in political science at Canterbury, takes quite the opposite tack. A South African, he specialises in Japan - he is fluent in the language, has spent over 3 years there as an academic, and has a Japanese wife. This is not his first Marxist critique of Japan - he analysed Japanese capitalism in "Classes In Contemporary Japan",

In this book he takes it to its logical conclusion, and studies Japan's textbook case of economic imperialism.

It is easy to whip up racist opposition to Japanese investment. Steven's achievement is to point out that Japanese workers suffer as much under the dominant system as do workers in the countries affected by Japanese imperialism. The argument must be with the system, not the people.

He also adopts a sharp focus. The land sales that have provoked such outrage in Australasia and the US don't rate a mention. He defines investment in land, tourism, banking, etc as "unpr-oduc t i.ve " I and only made possible by the powerhouses of Japanese capitalism ie. the car industry and electronics. He concentrates on those to the virtual exclusion of all else. Nor does he distracted by secondary issues, such as the spread of Japanese work practices that follow Japanese investment.

The strength of this book is that it is met draws extensively from Japanese sources. is a table of figures.

ously detailed and Every few pages there

The great force behind Japanese economic expansionism from the 1970s onwards is characterised by steven as the high yen crisis, the inevitable need to expand beyond its own shores. He gives a global analysis of Japanese economic strategy, and deals with its approach to other advanced capital Ls t; countries e But the greatest detail is reserved for its exploitative relationship with specific Asian countries - Singapore, south Korea, Thailand, Malaysia, Indonesia and the Philippines. The quest is always the classic one for any economic imperialist - a client government that can deliver a work force that is cheap, docile and skilled. Countries ·that can supply Japan t.he raw materials Lacks it~self. And beyond the scope of this book, there are the count.r i es that are designated to serve as the golf courses and ski fields for the burgeoning Japanese middle class with a

disposable income. countries 1 New Zealand.

s not mentioned, 1 relevance

i created

les of As It i

II

OBITUARY

JIM ANDREWS.

Horton.

I've never forgotten the first time I ever saw Jim. He .ra s handing out apples, from an old kerosene tin, as we marched from Blenheim to the top secret US Air Force Project Longbank installation at RNZAF Woodbourne (long since closed). 'I'hat was January 1971, and Jim was already 67. I thought "who is this old, fat guy with the porkpie hat and the voice like a busted concrete mixer?",

Jim was in the thick of it from then. He was undOubtedly the oldest and slowest protestor to climb to the USAF observatory atop Mt John (also closed down) during the tumultuous 1972 demo (his strategic contribution was to suggest setting Lake Tekapo on fire), He was there at Harewood in 73, and in May 1974 was one of the New Zealanders who took part in the grandiosely titled Long March I a 3 week bus journey to the massive US Navy communications base at North West Cape, WA. When all hell broke out (ie we were attacked by cops and locals) Jim stood in the thick of it completely untouched. CAFCINZ was born from that trip, and its first activity was the 1975 South Island Resistance Ride. Jim was on that and indeed celebrated his birthday on it.

So Jim "vas a foundation member of CAFCA, and was a "Watchdog" subscriber until his death. He was one of our most active members. In March he was killed by a fire in the Wellington house where he lived alone (something left on the stove caught fire and he was asphyxiated) He was 87 and it took a fire to kill the tough old bastard.

Fat .J i.m , Old Jim, Gentleman .Jim the Candyflossman. Whatever name he was known by, he had an amazing life. His death really does sever a link with a vibrant past, with a whole HZ way of life that is irrevocably gone. I profiled J"im twice in the early 70 's, most fully for the shortlived NZ edition of "Ro Ll Lnq stone",

Jim was a candyflossman for over 50 years, travelling the show c i r cu ic around the whole country. He knew everybody, ev~;!rywhere. The only time I've ever met Bruno Lawrence was wh.eri Jim introduced me; on the Resistance Ride, piaop Le came from the most remote areas to see their old mate Candyfloss. His WelLington funeral reflected this - Ken Douglas delivered a eulogy: movement legends like Trevor Richards and Owen Wilkes were present:. So were 2 Russian Orthodox priests - they were neighbours.

Jim was born in Bristol in 1904, coming to NZ aged 2. He grew up in TenliUka, before being sent to chr i.st.s College; where he showed early entrepreneurial flair by running the cream bun racket. Improbably he spent 3 years in the Canterbury Yeoman Cavalry, parading at the opening of the Bridge of Remerobramce.

into Ashburton when wa s a

sailors around whe n the warsh visit was made to NZ ( the 20s)

lars, He learnt a number of

Come the 30 s he ily the ft

in Christchurch (he was briefly a CPNZ memberu Jim was always an incorrigible individual the Unemployed Workers Movement, providing like "liberating" food from mar-ket; gardens to adventures are recorded in books like "Sugarbag Yearsll, and more recently Dave Welch's on the 1932 tramways strike (J was one of the

were of honour at Dave!s 1988 book )

th of the battle more than one c

flash racing bike at 6 oiclock one morning. in his tin hat and baton tried to grab the rear him in the guts and put my knee out Ii. ,J Lm was

more once. He knew all the rna or f

us . and h

du r

and one

commll11 i sm 0 ce in true wart: persuading a "conno soon as he

NZ, he was

Fiji, and deported home

vocation ~ boo t.Leqq i nq a judge that his suitcase of 's collection" (he sold was out the door) .

Our the 1951 lockout he once again workers ,

and he was involved in political act throughout (not to

mention ceaseless agitation against leg ion that

showmen , ifical the infamous "Dogcollar Act!!).

Le Ls ts Chr is Wheeler and Al ister Taylor e

him, or actual worked for him his floss stall Well

ttlB 80s he was selling floss at fa rs for causes such

as the N Must Survive Campaign.

'1'1:1(2:

1 ived to a old

corrc rad Lct.Lon of was 1 he told was hi

- 31 "

He was possibly the world's worst driver, specialising in huge old dinosaurs like Humber Snipes ("because the little ones bounce off you ") , abandoning them at the scene of his inevitable crashes and buying another one. The country is littered with old cars, old show machinery and old houses - all owned by Jim.

He was not one of those old jokers who live in the past. He was much more active than people a quarter of his age, and well " rt o old age he felt the brutal wrath of the State. In 1974 he was gaoled over civil debts and unpaid fines, spending several weeks in Mt Crawford (I visited him there) - he was instrumental in getting an inquiry into the bashing of a fellow prisoner. Most despicably, in 1989 the Wellington city Council sent cops with riot gear and a bulldozer to evict him from his Council lease house and demolish it. These bloodless bastards put an 85 year old man out onto the streets. It was a cause celebre in Wellington, and it was the news angle in reportage of Jim's death. Jim was a tough old bugger but, not surprisingly, this knocked the stuffing out of him. The most useful service these

bureaucrats could perform for their ratepayers would be to be served up as breakfast at the dog pound.

Jim was a goer. In the 70s he fronted up at a Fiji conference, Claiming to represent the Progressive youth Movement. He ingratiated himself with the cooks on various island traders and toured the Pacific in style. He was the only NZ representative at the 1976 demo at the top secret spybase at Pine Gap, central Australia. He was always on the lookout for a trip. In the 80s he was part of a group that visited China and North Korea. He last carne to Christchurch for the 1989 reunion of the PYM, and got newspaper coverage when he visited the police museum. He was in bad shape, physically and mentally, but I'm glad to say that he was much better the last time I saw him (Easter 90).

I have a whole raft of memories of Jim, some of them totally surreal istic. He vanished in some godforsaken outback town during the 1974 Aussie bus saga and re-emerged with several hundred cakes, which we del icately unwrapped and ate as we bounced across the desert. The most poignant one was from two years ago. I ran into him at a Wellington conference, and walked him horne. We seemed to be all alone in the city, and it struck me that he was this old man who just wanted an arm to steady him, and a friend to talk to. In many respects he was lonely (he never married, and had no kids).

But sentiment was not needed in Jim's case. Nor will I insult his memory with hypocrisy. Its standard obituary bullshit to say that this saintly old man would give you the shirt off his back. Well, Jim would sell you his one (and it would be several sizes too big). All jokes aside Jim, old mate, you were a legend, one of the last of the real Kiwi characters. Everybody that knew you has a rich store of anecdotes about you. I'll always remember you - old, short, fat, wearing your favourite "cunning" hat, with one eye closed and the other one looking out for the main chance. You could have been a sideshow character yourself or just another old moaner,

- 32. -

credit you , and life

inspiring. the a porkpie shaped

R TE VI"LL

e Worst Corporations 0

By Russell

in cormulti, the len

'well-educated" men. Even use slick multi-media whi tewash their misdeeds. But don't believe the hype. And don't believe you can't change things. Don't buy the products made by the worst corporations. Pick a high-profile local outlet )f one of the ten, and picket it

Be creative and have fun. But spread the word. Also, keep your eyes out for corporate crime in your neck of the world. Nominations are now open for the Ten Worst of 1991.

DECEMBER 1990

MONITOR

KENNECOTT IRTZ:

Next Question

The London-based multinational giant Rio Tinto Zinc operates 52 mines in 40 countries. In Canada, it has exposed its Denison Mine workers to radioactive exposures seven times higher than are considered safe. In 'Namibia, it houses its mine workers in appalling conditions in temporary camps and has run its operations in violation of United Nations resolutions 'on the country long occupied by South Africa. Around the world, from Northern Ireland to New Zealand, RTZ throws its weight around to get what it wants.

It sometimes resorts to violent threats against groups defending indigenous lands from mining op~ "rations. An RTZ board member once threatened to

squash Survival International like a fly" if the group didn't get off RTZ's case. [See "Rio Tinto Zinc: The British Mining Monster," Multinational Monitor, April 1990.J

Recently, Kennecott, the United States-based RTZ subsidiary, has been in abrawl with indigenous people In Wisconsin. According to a recent report by Al Cedicks, .sxecurive secretary of the Wisconsin Resources Protection Council, Kennecott wants to construct a small, open-pit copper mine near the dry of Ladys.nith. The mine would sit just 140 feet from the Rambeau River, one of the state's most pristine waterways and a prime walleye fishing area. 111e proposed mine IS also wi thin the territory retained by the Lake Supe-ior Chippewa for fishing, hunting and gathering.

The proposed site of the mine is opposed by a coalition of Wisconsin's six Chippewa bands and grassroots environmental groups. They argue that Native Americans have the right to protect their preserved fishing habitats and that Wisconsin cannot grant a permit to the mine unless Kennecott can prove that its mining activities will not degrade the natural resources in the area.

In 1976, grassroots activists in Wisconsin defeated a similar Kennecott proposal, but now Kennecott has access to RTZ's global resources. Indigenous people

fear that the proposed Kennecott facility will open the door for other mining companies to come in and pol- 1 ute the area, Mining companies have a long hi, tory of polluting the nation's waters, and Kennecott is near the top of any list of polluters. Local groups allege that Kennecott's Bingham Canyon Mine in Utah is one of the United States' most polluted sites.

In 1982, James Klausner, then an Exxon lobbyist, told the Wisconsin Manufacturers and Commerce Association that Wisconsin could host up to 10 major metal mines by the year 2000.

Gedicks reports that multinationals have quietly leased over 400,000 acres of farm, forest and recreation land with the intent of mining uranium, copper and zinc. According to Ced icks, the Chippewa/environmentalist coalition wants to declare the area a toxicfree environmental zone that would be jointly managed by the state and the Chippewa.

In May 1990, the Chippewa took their case to the RTZ board of directors meeting in London. When Caiashkibos, a Chippewa leader. asked board chairman Sir Alistair Frame whether RTZ would respect Chippewa rights in Wisconsin, Frame answered, "We will deal directly with the federal and state government. Next question." According to Cedicks' report, Caiashkibos tried to ask a follow-up question, but Frame turned off his microphone. "What we observed today confirms our worst suspicions about the intentions of RTZ," Caiashkibos said of the meeting. "We have been told firsthand that RTZ couldn't care less about our rights or concerns."

MultiMtianal Monitor [lSSN 0197-4637] is published monthly by Essential Information, Inc., P.O. Box 19405, Washington, DC 20036. Telephone: (202) 387-8000.

Second-c-lass postage paid at Washington, DC.

ANNUAL SUBSCRIPTlQN PRICES: .Personal-$22; Non-profit illStitutioruY-$25; Business institulioils-$35. Foreign Subscriptions: ~ad!l and Mexico, add $10 to cover first class mall; all other COlin tries, add $15 for. airmail.

SAND TOO HOT HANDLE

COROMANDEL, WESTLAND MINING PROSPECTS

The spectre of radioactive dumps of mine tailings appearing the coastline of Aotearoa has been raised by the proposed activities of multinational companies including Max Resources Perth, North Broken Hill Peko and a consortium involving Nis Iwai Corporation and Austpac Titanium Ltd.

Mineral sands found in parts of the country are valuable as a source of ilmenite from which titanium dioxide can be manufactured for use as a pigment in the paint industry. The sands also contain proportions of monazite a complex of radioactive minerals including cerium and thorium. The extraction of ilmenite from the sands concentrates the radioactive elements in the tailings.

Max Resources has applied for exploration covering 500 square kilometres of coast from to Tauranga. The company's application environmentalists and affected residents.

licences for ilmenite Great Mercury Island is being opposed by

North Broken Hill Peko's proposed venture, through its subsidiary Westland Ilmenite Ltd, involves the mining of mineral sands on the Barrytown flats between Greymouth and Westport and the production of an ilmenite concentrate. The lack of information about the potential problem caused by monazite in the company's Environmental Impact Assessment which was released on 19 April 1991 has raised protest from environmental groups. The Ministry for the Environment has since sought more detailed information from the company on the nature of the sands and the handlingu treatment, stockpiling and final use of all minerals the company proposes to mine.

A joint venture comprising Nissho Iwai Corporation, Austpac Titanium Limited and Buller Minerals Ltd has recently conducted feasibility studies into the commissioning of a processing plant at Barrytown near Westport to exploit the considerable reserves of minera.l sands on the West Coast of the South Island. Already a .facility for the production of heavy metal concentrate has been built at Carter's Beach and 30 000 tonnes of sand mined for the production of 8000 tonnes of concentrate. The concentrate was further processed at a pilot plant at Barrytown into ilmenite for shipping to Japan.

The problem of "hot sand" tailings associated with mineral sand mining has been known to exist for at least 30 years. In Australia hazardous tailing wastes have been associated with mines at Moreton Island near Brisbane and along the Gold Coast since 1963. In a bizarre twist over 200 000 tonnes of the sands produced by those mines were sold by mining companies (including Consolidated Rutile) to householders and builders in South East Queensland as fill and topsoil. This has since turned up in such diverse places as school playgrounds and sports stadiums.

So

'1.'.0 mine this country B s mineral potential dangers of t.he Lr losed that the preferred way is to process out the

sell the product use as

that the 30 June 1990 N.L. has highlight,d that its Westport Titanium Ltd' 5 mining licencf)

Project application