NUMBER 72

MARCH 1993

CONTENTS

PAGE

BLINDED BY BULLSHIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

REC~OLONISA TION FOR AOTEAROA/NZ? . .. . . . . . . . . . . . . . . . . . 9

HEALTH CARE PRIVATISATION . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

"THE AMERICAN DISEASE" - New Video Available. ... .. . ... .. 13

COMALCO'S LITANY.................................... 14

"THE GULLIVER FILE" UPDATE . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

GATT/NAFfA & THE ENVIRONMENT " . .. .. 17

Letters

ASPEN INSTITIJTE & BIG BUSINESS. .. .. . .. . .. .. . .. . .. 18

OKUR U WATER EXPORTS - Greenies' Trickledown 19

CAFCA SUBMISSION ON SOUTHPOWER 20

Southpower/Electricorp/Maruia Update. . . . . . . . . . . . . . . . . . . . 21

The Empire That Never Went Away. . . . . . . . . . . . . . . . . . . . . . 24

COURT DISMISSES PEOPLES CENTRE RAID CHARGES. . . . . . . . 24

OIC DECISIONS

August to December 1992 decisions . . 26

Reviews

"THE BIG CON" . 46

"CONTROLLING INTERESTS" . . . . . . . . . . . . . . . . .. 46

THE CAR INDUSTRY - Is It Finally CKD? . . . . . 48

Spreading The Real Kiwi Disease . . . . . . . . . . . . . 50

ASIAN INVESTMENT - Some Facts From An Insider . . . . . . . . . . . . 50

Obituaries

HART Stops - So Long and Thanks. . . . . . . . . . . . . . . . . . . . . . 52

BRUCE McALPINE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

ANTONY lERRY - Journalist, Spy , . .. . .. . . . . .. 55

INSTANT FEUDALISM - Just Add Peasants 58

THE REAL DRUG BARONS 60

PEACE, POWER & POLITICS - NZ After ANZUS Conference. . . . . . 62

I

(The "Republican" invited Murray to write a cover story. This is the full version. We highly recommend the revamped "Republican" to our readers, All inquiries to Box 22 263, Otahuhu, Auckland 6).

There used to be apocryphal stories about American tourists who believed that they could drive to New Zealand via the Sydney Harbour Bridge (actually, not that apocryphal. I've met Yanks in my travels who believed that). This lamentable Northern Hemisphere geographical ignorance must account for the belief that New Zealand is part of Australia, or at least. that our economy is. "The market" (an appropriate name for a collection of sheep and swine) offered that straightfaced explanation as to why New Zealand interest rates suddenly went up at the start of this year, despite the economy having less inflation than a used condom. Apparently, "foreign investors" had one of their periodic panic attacks regarding the Australian economy. and assuming New Zealand to be part of it, decided to get rid of their Mickey Mouse Kiwi dollars as well. The end result? New Zealand homebuyers and homeowners end up paying more on their mortgage interest rates. A timely illustration of the costly and parasitic nature of this much vaunted foreign investment, particularly of the speculative money market variety.

Foreign investment is proclaimed to be the panacea for the country's problems by both major parties, the Business Roundtable, and their ideological arselickers in the media (when the latter aren't bringing us the really vital news, such as Prince Charles' fear of being reincarnated as a tampon). The need to make New Zealand "competitive" and "attractive" to foreign investors is cited as the rationale for destroying the Welfare State, smashing unions, and throwing the economy wide open to any passerby fancying a quickie. Apparently it will create jobs, pay off the national debt, and, courtesy of an export-led economy, get us out of the Great Depression of the 90s. Plus give us cars, cellphones and videos. It's the white man's cargo cult. HaUeujah!

Bullshit, Let's start with jobs. Unemployment is regularly cited as the country's most pressing problem. Even the media hacks pushing the current propaganda line that "things are getting better" always qualify themselves by saying that unemployment will be the last economic indicator to show any improvement. OK, but that's the already depressed domestic econom y.

What about this

foreign investment?

The "Listener" (21/11/92) ran a feature entitled "10 Ways to Beat Unemployment". Number 1 was: "Expand Exports" (and I'll leave the arguments against an export-led economy for another time).

..... Forestry is another export area that could grow. The number of trees ready to be felled should double by the beginning of the next century. Forestry Industry Institute director Paul Quinn guesses these existing trees will create another 2500 jobs.

"But to get more jobs than that, Quinn says, the industry win need new pulp and sawmills. Required expendi ture - about $3.5 billion. That is too much to come solely from New Zealand investors. And because of attractive tax write-offs for forestry investors in countries like China, Chile and Indonesia, investors are more likely to go there than come here. If we want new plants and jobs, the government must modify depredation schedules, he says.

"The significant but capital-intensive forestry industry is but a small part of the answer to finding 260,mO people jobs. At best it could obtain about five percent of them".

Forestry is a very good example of the fact that foreign investment will do SF A for employment. It is an industry that has undergone massive changes in ownership in the last few years, starting with Cyclone Richard, and continuing apace today. In late 1991, NZ forestry giant, Carter Holt Harvey, became American owned; and in early 1992, the Government sold forestry rights to nearly 100,000 ha of State forests to the American company ITT Rayonier, for $366 million (they had been expected to fetch $900 million). lIT is now the largest overseas owner of New Zealand's forests, with 8% of exotic plantations. Even the local industry giant, Fletcher Challenge, is no longer a New Zealand company, with its foreign shareholding being at least 40% (25% is the legal definition offoreign ownership, in the 1973 Overseas Investment Act).

And so where are the forestry jobs? Wen, the Minister of Forestry, John Falloon (rhymes with Buffoon) proclaimed, in late 1991, that forestry would create 350,000 jobs by 2020. (That sounded uncannil y like the 410,000

Watchdog

Pa.ge 2

concluded:

nrC'rl1f'H' c:rea-

new by 2001...

by job reductions in because of new agamss planting for

term results' at the expense of creating a useful forest resource in the long term ... " ("Press", 7/2/92). What the timber wolves are telling the Government here is simple: don't use forestry for job creation schemes, it's our resource for private (and overseas) profit

OK, but isn't foreign investment going to solve "our" debt problem? Let's start by establishing whose debt it is we're being held responsible for. The "Press" (25/6/ 92) ran a very telling analysis of the total foreign debt, which stood at $62 billion as at March 31, 1992 (ie $18,000 for every man, woman, and child in the country):

"TIle show the continued rise of private

sector comprising companies. financial insti-

tutions, and producer boards ... The private sector now holds 56.4 % of the total debt, up from 41 % in September 1989". 'The official Government sector now holds 32%, compared to 36% in 1989 ... Debtheld by SOEs has dropped sharply and now at 11.4% as against 22.4% 3 years ago. This was mainly due to the privatisation ofSOEs .. "

It's very to realise

nothing whatsoever to do with

from the of

Zealand the overseas foreign debt was $15

56% of "our" debt is but results incurred by New Douglas deregulated When he came to office,

It's also instructive to that ownership of New Zealand companies is officially regarded as a liability, not an asset their profits are

repatriated to overseas owners. And currently

international exceed assets by $51 billion.

The liabilities are listed as being that $62 billion debt, plus ownership of New Zealand companies ("Press". 17/1 0/92).

The rationalisation for State asset sales has always been that they are to clear our horrendous foreign debt An argument I've always to selling the house to pay the mortgage, or more aptly, burning it

New Zealand is undeniably to

tors at present, and they, in return, are invested with a false patina of glamour by a largely sycophantic media. The perfect illustration of this lovefest was the takeover of Wattie's. The glamour was personified by Heinz' chief executive, Tony There was a peculiarly New Zealand angle to it-only passing attention was paid to the fact that the highest paid executive in the US flew into Hastings in the corporate jet, to consummate a marriage he had first proposed 20 years earlier (HBeanz Meanz Long Engagementz"). Nope, the media plugged the angle that Tony O'Reilly was a long ago but not forgotten rugby legend, ironically a leftwinger, in the 1959 Lions (I was a Wellington primary schoolboy then, and I remember his red

hair, short shorts, and record of tries).

In rerum, O'Reilly was well with what Heinl bought for $567 million, saying Wattle's win !JC(;OHle Heinz' means of penetrating the market And he sang the

" ... the New Zealand economy has from Government policies that have encouraged free

trade and low cost last five

years ... Rogernomlcs has Zea-

land into a society transformed. Allowing

sourness exist" out the fact the matter is

New Zealand has the I

really believe that enterprise is to enter a

dramatic decade of growth in this country.

"Furthermore. the principal trading Aus tralia, is onl y be ginning to address issues which are already now passe here. I thou ght New ",""",<""""''''' was five years ahead of Australia, but because of its particular political it win take Australia 10 years to go through the necessary catharsis to

its geographic isolation in the way New Zea-

land has. New is there, Australia has 10

years of agony. That not even mean catch up

- just that in 10 years Australia will get to where New is today" ("Press", 8/10 & 13/101 92).

Translation - Australia has got another 10 years to avoid turning into the wasteland that we have become. In the meantime, New Zealand bids goodbye to local ownership of the baked beans that have done so much to destroy the ozone layer in this part of the world. Nor is Heinz' enthusiasm a one off among multinationals - for example, Glaxo, Britain's largest company and the world's second largest pharmaceutical company, is building a $14 million plant in Palrnerston North, because of New Zealand's "sound business environment" C'Press", 9/10192). O'Reilly is doubtless correct when he says "Rogernomics has catapulted New Zealand into a society transformed", although the vast majority of New Zealanders would list considerably different, and negative, examples.

Which brings us to another of'the myths of the ideological wankocracy -namely that the level playing field will, in itself, attract our salvation l.e. foreign investment. Obviously some multinationals, such as Heinz, buy this, as does Comalco's managing director, Kerry McDonald. In his paper, on "Manufacturing" at the October 1992 Japan/New Zealand Business Council meeting, in Christchurch, Kakapo Kerry said, of Rogernomics:

"There are no guarantees about the future but generall y the bipartisan nature of the changes has been encouraging. While aspects of the changes are controversial and politically unpopular there is nevertheless an understanding in the community of the necessity for the policies of change (sic). Flnally the changes are not superficial and cosmetic, but fundamental, to an extent that win make them practically impossible to reverse."

McDonald then articulated the Bolger/Richardson line on foreign investment:

" ... A common question among potential investors is about the scope of New Zealand's tax and other incentives for direct foreign investors. The Government's response is that the policy focus is noton short term fiscal or similar measures to artificially enhance New Zealand's attractiveness as an investment destination but rather on a com prehensive process of reform to make theNew Zealandeconorny genuinely more competitive, so that producers in

New Zealand have

tage is not '~"".I""""

variation ...

advan-

Unfortunately the some foreign investors want the level playing field to come complete with floodlights, Astroturf, and members' boxes. The 1992 Forest Industries Council (cited above) is an example.

" .. .It found from a confidential poll of senior overseas forestry executives that New Zealand was not particularly attractive for investment. 'While policy advisers/analysts may applaud New Zealand's low inflation rate, etc, investors require more from New Zealand'

" ... An 'explicit invi ration card' to foreign investors was needed, including internationally competitive depreciation rates, more competitive cost structures, and Government-led efforts against other countries' trade barriers through bilateral treaties ... The package had to be able to survive changes of Government and would need to be constantly compared with overseas.

"Tnvestment in New Zealand is simply a product competing in the international Investment marketplace'. It warned against subjective 'loss of sovereignty' arguments, saying the returns to New Zealand were far greater than to the investor.;" ("Press", 7/2192).

The timber wolves unfavourably compared New Zealand with Chile, another Pacific nation awash with trees and slavishly eager to attract foreign investors (including those very same New Zealand forest products multinationals). Apparently we need to compete on the same terms as a Third World economy that has only recently emerged from a brutally long military dictatorship.

To hark back to the" 10 Ways to Beat Unemployment" C'Listener", 21/11/92). Number 2 is "Roll in the Tourists", and we find the Tourism Board public affairs manager (the ubiquitous David Beatson) saying that the industry needs about $6 billion invested over the next five years, money that has to come from overseas.

"Like the forestry industry association, Beatson points to high depreciation rates offered by other Asia/Pacific countries, 'Right now it's damned hard'".

Indeed the desirability or

investment

4

ruling class in a public debate,

playing is

line 'The most frank assess-

ment an unusually frank one, from

came from Professor Masahiki Ebashi who

NZ ofEc()BOlmtc ,~~'mv.

" New Zealand was not

attractive not to have to to

potential investors" 'A neutral policy for invest-

ment would if country had lots

of'invcstment attractions a bi g and dynamic

growing market, a cheap, affluent and flexible labour market, and abundant natural resources'. But New Zealandcould not claim these ... " ("Press", 10/4/92).

Ebashi 's most telling point was not highlighted by the media, because of its enormous implications: "Japanese companies operating in this country ... perceived the reforms of the last. eight years as creating an unstable environment because of the amount of change resulting" (ibid). That is, the inherently conservative Japanese multinationals are now wary ofNZ, because they don't like change fix change's sake. That is something we can agree on.

What sort of incentives do foreign investors want? Singapore's Minister of Foreign Affai rs, Mr Wong Kan

Seng, said investors were attracted by the

tax holidays other inducements offered in South

East Asia, and was competing with

The splendidly named Mr ,.LV,c>,·"t",,,, director of the South Korean Chamber of Commerce and Industry, was even blunter. Korean investors want investment incentives, tax holidays, factories free from trade unions. The Employment Contracts Act is not enough. "What concerns us most is the high level in your ,419/92). Cheap labour, no unions, asked. And the NZ taxpayer

should to come here. Having just read about

the physical of Korean-run in several

Central American countries, X say no bloody thanks.

The local Hl(>OlOJ!Il(~S want even more fundamental the Savaronola of the Busihas decried "negative" public attipoliticians "exploit the and unrestrained power to

regulating in the name of

. He the teaching of

studies in schools, saying they reinattitudes to business, and that the

tudes towards myth of justify

It's timely to examine actual deletrious effects of

foreign control end of

foreign "investment"). Before looking at the more obvious ones, I'll mention some New Zealand has been virtually free ofthe political corruption that is endemic in so many countries (look no further Ulan Australia). Financial corruption is another matter, and was a major factor in fuelling Roger Kerr's "myth of corporate greed" in 80s. But evidence of straight

out political corruption has been on the ground.

Sir Hamish Hay. undefeated Tory Mayor Christchurch, 1974-89, handed us an example on a plate, during the 199210cal body campaign. He wrote a bludging letter to a Japanese millionaire in Christchurch's sister city, Kurashiki,

"My reason for writing this letter is to ask you to consider making a donation to assist the election advertising costs of a conserv ati ve political organi 0> sation of which I am President -namely the Christchurch Citizens Action Association - which is about to contest the local Council elections ... Our team is strongly supportive of our sister-city relationship with Kurashiki and in further developing friendship and economic ties with Japan, especially in the tourism sector. We are urgently seeking more funds to assist our campaign costs, and would deeply appreciate any donation which your Company or any other organisation you may know of in Kurashiki which has links with Christchurch may wish to make. We will, of course, keep this matter strictly confidential".

For good measure, his signature included his Japanese honour, Order of the Rising Sun (with Gold Rays)! Well, confidential is the last thing it became. An appalled Christchurch resident of K urashiki it to the "Press", which splashed it all over the front page (22/9/92). Sir Hamish, a silver spoon Tory of the old school, seemed genuinely astonished at the uproar, and resigned as Citizens' President Nor did his begging letter elicit any yen from Japan. It was comic opera stuff, but the serious question remains. what about the ones we don' l know 'The plethora om bel claims against TVNZ arising from the 1990 "Frontline" programme alleging massive Business financing of

5

Labour

Peters of worms in his quest for BNZ and related

cultural imperialism that a." inevitabl y as flies follow

been a constant New Zealand

om colonial history, being

and now American (doubtless Japanese

next, hopefully something better

A whole could be written on

done in this

tier removal to make way a Fried Chicken outlet. A local art teacher was quoted: "I could not imagine William Shakespeare's residence in England having a threat hanging over it of becorning a fast foods outlet, but I can easily imagine it happening here in Hawera" ("Press", 7/12/92). Murder and chooks are given equal, idiosyncratic treatment in Morrieson's books. Hopefully he has put a fearful curse on the place.

is the question of multinationals flexing their muscle to protect their interests here. Examples of this are plentiful, and take a variety of forms. I'll give two.

Collins, the world's third largest publisher, obtained a High Court injunction, to stop Tony Mitchell selling cheap books. He had already sold over 1 million from his Book Warehouse chain, importing American remainders, and selling them well below the prices charged by publishers for the British editions of the same books. Harper Collins were enforcing the old publishing agreement which dictated Australians and New Zealanders should buy books from Britain, while Canadians had to bu y them from the

It said it was just protecting its copyright under international law, but in other countries (eg Australia) the use of copyright to control marketing channels

breaches free laws ("Press", 9/12/92).

The secondexample is Glaxo, the very same beneficient British mentioned above for bestowing a on Palmerston North because they like us so much. Glaxo, via its local lobbyists (including Jim was instrumental in getting the Gov-

ernment to announce all amendment to 1953 Patents

to local companies replicating versions

nanonais. Minister of ComGovernment had else, but his own

arc

Secretary of Commerce, truth;

of

comes New

position. We arc round in agriculture. We are

States in agriculture, Itrnakes sense cannot

ignore the United States when it comes to legislation in the GATT context" 92). Specifically, patent" fall into the GATT lexicon as 'TRIPS (Trade Related Intellectual

erty Rights). The unauthorised sale of EUe Macpherson T shirts and nighties was a more recent, and comprehensible, case involving intellectual property.

Note that, in both these examples involving some of the biggest multinationals in their fields, there is no mention of free trade (let alone fair trade), competition, deregulation, cheaper goods, or service to the New Zealand public. Quite the opposite, in fact, And that exposes the central contradiction propounded by the bullshit artists who hold the increasingly shaky ideological high ground. "Deregulating", "restucturing", "reforming", "downsizing", etc, etc (ad nauseum) indeed does make New Zealand attractive to foreign investors. But once here, they have no adherence to "market forces". Their only interest is in forcing the market to suit themselves. The propagandists peddle the myth of the level playing field - the big boys are interested only in monopoly domination, increased profits, and unassailable politico-economic power. The New Right stormtroopers sing the praises of the withering away of the State; ironic really, because local and foreign Big Business effectively become the State. A corporate State, acting solely in tile interests of its largest shareholders. The public need not apply.

There is nothing unique about what is happening here, a fact that our isolation and parochial media us to ignore. It is simply part of a worldwide trend towards multinationalisation. Governments worldwide have,

wittingly or not, accepted this bullshit

about their economic salvation lying in their

countries "attractive" to foreign investment Obviously the multinationals and their local collaborators have a vested interest in encouraging this delusion. The simultaneous and contradictory trends of deregulation and multinationalisation have two main effects - money and pow cr.

Deregulation means that NZ capitalists, or NZbased multinationals, can take their money to more

Combining with 11 deregulated

economy means loss of New Zealanders'

sovereignty over our own destiny; a loss of ownership over our own assets: and a concentration of wealth and resources into the hands of foreign and local

Big In sense, we: lose power over

virtually of our own lives. Losing power

offshore means that decisions made in foreign boardrooms (viz the interest rates) can cost us money, or lose us our jobs. Centralised multinational power brings with it production (the "world car" being example), and means that multinationals, <1;;; our very own Fletcher Challenge, can

ride out local strikes by importing raw material

from their (Canadian) holdings.

It means that nation states end up competing against each other to the most "attractive" conditions for foreign investors - labour, lower taxes, less regulations, Jess environmental restraints, no social costs, weakened unions, a gutted Welfare State. Sound like home? And some of the brainwashed in the

increasing] y parroting the to "compete" with nationally,

union movement end up of the ideologues, urging workers other, domestically and inter-

The of foreign cg the Asian owned resorts and courses are the ones that

the attention and the racist reaction (and it's

worth realising that Asian investment comes a long American, British, and Eurc.... ""H~",n in high profile

commercial 35% is

nese). Far more is the Australian takeover of

several billion dollars worth of financial reone New Zealand owned trend away from the multinationals -

tourism,

tional into every market, I've

the example of'Glaxo and the pressuring NZ to change its laws to suit them, with GKfT as justificanon.

Another hypothetical example is that the current quota

system which regulates the fishing industry

would not be permitted under as it stipulates

that multinationals must be ie treated like a local company. Foreign fishing com" panics are currently excluded from NZ's Exclusive Economic Zone. Under GATT, they will have to be admitted, on pain of enforceable international

ties. The Government has anticipated this and announced His replacing the quota system with tendering, which will benefit the multinationals, Anyone voicing

opposition to GAIT is perceived as a and

ignored by the media in its facile coverage issue.

"Us" becoming better off will in reality mean "them" having an even more open market to loot and plunder.

The deregulators keep right on keeping on, although they are running out of things to "liberate" (how traffic lights"). But there's still the odd remaining pocket of ideological sinfulness. For instance, there are moves afoot to deregulate coastal shipping, allowing foreign ere wed vessels to carry NZ domestic cargo. Both the maritime unions and local shipping companies have opposed saying it will destroy the local industry and cost 7000 jobs ("Press", 14/10/92), while also raising the possibility of disasters human error.

The Business Round Table and their Sir

Douglas, are campaigning hard for removal

producer boards, as they private profit Douglas

has recently released a for the demise

the Kiwifruit AppleFields been most vocal

in its battle with various producer boards, and it provided Douglas with a at its annual meeting, in Christchurch. Managing director, Tom Kain, introduced Douglas as "Apple Field's man of IDe century" , 23/1 2/92). It was in this speech that Douglas said: "And if the Alliance wins (the general election) I'm jumping on the next boat to China". I would have

thought Somalia would have a more """'"1l'ln>1'''

spiritual horne. The State has definitely withered away there. (To be fair, said he part

7

context scheme).

from new bloatacracy has become most glaringly apparent, creating armies of lavishly overpaid managers and consultants, with Big Business waiting for profitable privatisation. Health restructuring costs incurred in the Prime Minister's department were 400% over budget, in 1992 ("Press, 23/12/92), and the excess was accounted for by this bloatocracy. Meantime both sickness and death have been the result of the health "reforms" ie the bad blood scandal, and the babies who died because the Health Department wouldn 't or couldn't spend money to warn people of the dangers of eating shellfish. So it's official-radical Rightwing economic restructuring kills people.

My aim has been to deal with some of the official

1HE" PAtN IS ALMOST

{lVER .•• R04ElI? llOU(~UI<;

1_ j # g fa

press,

DoES 'llil$ MEAN mE EcoN<)N'r IS ON THE

MfNO?

..-c __ --'

the solutions? a whole other

very mildest level. start with baulk at its policy of buying back Telecom. IWA,cn"'J' tion would be my preference. It parliamentary politics however. In fact

and parcel of the problem. And it can't

country in isolation, it needs grassroots level. But likewise, we must mana of "nationalism". The current propaganda line associates it only with atrocities sive nationalism is something to be proud

Suffice it to say, let's make New Zealand as ugly as

possible for foreign investors. We always told that

the market must take priority in all areas but also

that the market is subject to bouts of acute nervousness. Well let's make the bastards so bloody nervous they shit themselves. That would a highly satisfactory starting point

8

Dennis A full page advertisement in the newspapers (e.g. "Press", 23/1/93) recently told us that "The world's most famous hour of current affairs" was returning on Channel 2. "60 Minutes" is back! Our television mindcrs eagerly continue to pump out more and more US propaganda, often packaged with NZ domestic

content, at same time as they gut TV of any

meaningful analysis and debate. Even right-

winger Lindsay Perigo, on leaving, said that TV current affairs has become sheer spectacle. He pronounced it "brain-dead"Whcthcr due to personal pique or not, Perigo's comments are certainly valid.

To whom the "Holmes" show tum for comment on the resumption of Western hostilities against Iraq? To none other, of course, than Steve Hoadley, wen-known for his pro-US views, to us the official Big Brother version of how we should see the world (TV 1, 14/1193). Hoadley, chillingly enough, indicated that we would see a lot more of such military policing actions in the future to nip possible future Hitlers (not Bushes') in the bud.

The Western Imperium in its imposition of the "New World Order" is being well served by the likes of Hoadley with their moralising gloss over the reality of the resource war. Their function is to justify keeping the "wretched of the earth" firmly in their place, and to legitimate bloody intervention as appropriate. At the same time, a destructive, mutually reinforcing interaction has arisen between Saddam Hussein examplars and those who try to control them.

Agreement

In the 1990s cultural colonisation is accumulating in Aotearoa/Nz; It goes hand in hand with the sticky economic threads that are being woven around us.

"An Agreement between the Government. of New Zealand and Government of the United States of America concerning a framework of principles and

procedures consultations regarding trade and in-

vestment was signed on 2 October 1992, by

US Trade Carla Hills for the US, and

Philip ,",."·,nn,,

for

9

closer to the long

establishment and foreign affai rs the related trade negotiations in the GA'IT, the North American Free Trade Agreement (NAFT A). It signals our deepening involvement in the US-driven "free" trade programme.

The framework of general. principles explicitly takes account of how the Agreement should fit into the GATT. Point 3 of Article 6, dealing with consultations, says that, 'This Article shall be without prejudice to the rights and obligations of either Party under the GATT or under any other instruments (including any instruments emerging from the GATT Uruguay Round) to which both Parties are, or may, during the period of effectiveness of this Agreement become contracting parties" (note that this provision can cover CER and the Australian connection, and also possible future NAFT A membership).

In the Agreement, it is declared that the parties recognise "that foreign direct investment confers positive benefits on each Party ... " No recognition of any negative aspects here! In similar vein, the Agreement extolls the virtues of "private investment". Agreement principles include those about "recognising the benefits to each Party resulting from increased international trade and investment ... "; "recognising the increasing importance of services ... "; and "recognising the importance of providing adequate and effective protection and enforcement of intellectual property rights ... "

The principle referring to protection of "intellectual property rights" (patent legislation, etc.) contrasts glaringly with an earlier point about the alleged negative effects of'vprotectionism and other measures distorting

trade and investment that would

Parties of the "benefits" of "a more liberal and predictable environment", Apparently, what transnational. corporations (TNCs) regard as free trade "protection and enforcement of intellectual property rights" is not something called "protectionism"! The NZ Government has, indeed, openly acknowledged that it is yielding to US TNC demands on intellectual property so TNC-cngineercd distortions to the market (see "Watchdog" 70). Governments, especially governments of small countries, arc increasingl ythe agents of globalised

Capitalist win fare

the US-NZ trade/investment Agreement is facilitating closer economic collaboration even as the GAIT talks seem to be crumbling under the crossfire of the three great rival capitalist blocs - the US, Europe and Japan/East Asia, - especially the strongly contesting American and European blocs. The long predicted and painfully analysed crisis of capitalism is reaching a tension-ridden tripolar high point Former NZ diplomat, Bryce Harland, in his review of NZ's position in this emerging tripolar world, makes much of the fact that we are "On Our Own" (Institute of Policy Studies. 1992). But the implicit message of Harland's booklet is that NZ would 'be better off with a big, powerful friend i.e. the US, It is worth looking closely at Harland's study in order to see how such a diplomatic determination is made. Harland has represented NZ at the United Nations, was our first ambassador to the People's Republic of China, and recently retired from the postof High Commissioner to the United Kingdom.

Despite the heavil y documented record of US depravity in the name of freedom, Harland subscribes to the standardised official view of the US as the defender and promoter of "market democracy", and champion of the independence of small countries. Facts are not. allowed to get in the way of this sort of diplomatic vision! If Harland can ignore for the most part all the US interventions and invasions in Latin America and elsewhere, he may comfortably ignore the loss offreedom for Aotearoa/

NZ. Again, this with the official foreign affairs

bureaucratic view our place, or preferred possible

place, in the world. If minds are already colonised,

freedoms are perceived and appreciated.

Noam Chomsky aptly observes that the key reason given for the US-led war on Iraq, namely that "aggressors cannot be rewarded and aggression must be reversed by the quick resort to violence" could be refuted in two minutes by a literate teenager! ("Media Control:

The Spectacular Achievements of Propaganda", Open Magazine Pamphlet Series, no.H), 1991). Even the public record (overlooking the covert one) of the US so clearly contradicts the notion that it is the guardian of small countries, This point is important to stress in Harland's case since his outlook is representative of how perverse official view of reality is. and consequently how perverse the understanding of what independence can mean for Aotearoa/Nz,

Harland, incidentally, does acknowledge the US's regu-

use unilateral military its future

application "as ever", in the Caribbean.tp.Zx), Yet he must evidently consider such intervention as somehow demonstrating principled concern for human rights and self-determination!

Tripolar Threats

But, left unbalanced, this would be somewhat cavalier comment on a serious effort to confront genuine concerns, even if more or less pushing a standard solution. It would also be wrong to ignore some very significant points and questions, if obvious enough, raised by Harland. His short study is useful for affording insights into certain current problematic issues related to the central problem of NZ's vulnerability to tripolar trade wars; and the nature of the continuing assessment by the foreign affairs establishment as to what course of action NZ should take in these increasingly critical circumstances.

One important question which Harland poses is whether, without the Soviet threat, and so a convenient external enemy, capitalist unity can survive. There is, of course, the real long term enemy still - the starving millions of the Third World. Today, this is brazenly evident in Pentagon strategic planning as registered, for instance, in the document "Discriminate Deterrence" (Jan. 1988) by the Presidential Commission on Long- Term Integrated Strategy. But, like Hoadley, Harland cannot openly recognise this reality. He warns, for instance. against the danger of threatening Third World countries on the matter of nuclear proliferation - such a move could generate a strong negative reaction towards the West (p.72). Again, he worries that the new trilateralism, if functioning co-operatively, might well be perceived by the Third World as anew form of imperialism (p.S1). While existing nco-imperialism is overlooked, crudely evident repression is eschewed, if only because of the negative reactions it might engender.

Rising nationalisms - the spectre of Social Darwinism - and economic competition are seen as the potential international threats to world stability and NZ prosperity. But there is no explicit acknowledgement of the connections of these threats with the underlying problem of mounting pressure on resources. As well, there is a large contradiction between the settlement of the GAIT Uruguay Round hoped for by Harland and what this would actually mean for Aotearoa/NZ in terms of greatly reduced sovereignty (p.S7). Evident here, indeed, is a fundamental lack of comprehension of, or rather feeling for, the meaning of independence.

Page 10

make us

is perceived in the capitalist system in terms of dangerous trends to trilateral competition. 111(; as great benefactor may become the market as the great destroyer. Marxist analysis is ironicall y being endorsed even in the immediate aftermath of the proclaimed capitalist triumph over eastern state socialism.

Choice, Independence and Belt-tightening

For Harland. independence is an asset to be used sparingly (p.88). His continual carping about claimed difficulties, including trade ones, caused by our antinuclear stand shows the bureaucratic willingness to compromise on independence (see pages 25, 26.40.43. 54,56, 57, 61, 88,90,91). How can any independence be maintained if one is in the pocketof a big power? But a trade-off of our economic, political. social, and cultural integrity for continued affluence is what Harland really appears to be suggesting is NZ's best option. He is at least right in stressing that there is a price to pay for assertive independence, a hard choice to make. It can be much easier to be subservient.

Yet there are illusions of choice too. Even if we were to sell our soul for supposed material gain, reality will eventually force changes to the way of life of most people. Inevitable environmental constraints will require this. The big question is the degree to which adjustment and adaptation will be shared equitably.

Of course, however, the immediate central counterargument to Harland's implicit thesis is that selling out to foreign control would only accelerate the already brutalising effects of the free market, let alone rob us of our freedom. Affluence is a myth for all those who both suffer and will suffer deprivation so that a few can live luxuriously.

Harland considers. ludicrously enough. that the IMF has saved Third World countries from losing their independence" mainly because the US is opposed to imperialism! (p.88). Walden Bello calls a "global economic counter-revolution", engineered by the US-led World BankJIMF/fNC consortium. Harland regards as benevolent salvation! (see "Pacific World", no.24, August 1992, for Bello's brilliant overview), But, then, Harland can actually say that, "No one has even begun to talk about restructuring in New Zealand's case''!! (p.87). One perceptive journalist has well described NZ's experience of restructuring under

External Relations and Trade

promote New Zealanders' structuring on an international NZ is working with the World tional financial institutions in this enterprise!

In seeking our best choice for the future, Harland maintains that NZ could not exert much influence unless closely associated with one or more of the great powers (1".56). He specifically criticises Aotearoa/ NZ's anti-nuclear stance as "unrealistic" and the result of "a reluctance to accept the world as it was" (p.56). In an address delivered as "The Menzies Lecture" and reproduced as an appendix to "On Our Own", Harland asserts that Australia and NZ can have little global influence. "What happens in the rest of the world affects us much more than our actions affect it. In the language of the marketplace we are price-takers rather than price-makers" (pp.LOt-I 05). The obvious implication to draw is that we should surrender our sovereignty.

GATT~ CER~ NAFfA

Harland. indeed, points forward to political union with Australia. He claims that an "increasing number of New Zealanders share Menzies' hope that closer economic relations" will lead to such liaison. He adds, "Their view could gather support if the Uruguay Round failed to relieve us from the pressure of protectionism" (pp.105-106).

In his conclusion, Harland poses the central issue at stake as he sees it in the Uruguay ,. "whether the emerging tripolar world win be a co-operative and constructive one, or opposite .. , 107). An isolated moa strides into extinction on me study's cover. 111C symbolism for NZ is dear.

While "On. Our Own" is the of one ex-diplomat, it signifies, as indicated above, the sort of thinking under way in Government circles and suggests the direction in which the Government is leaning, or rather lurching. The US-NZ trade/investment Agreement is a major signpost Consequently, it is vital for proponents of alternative viewpoints to examine the case being

made for subordination to US,

IfHarl and is somewhat reserved in the expression of his inclinations, others arc much more forthright. Another recent Institute of Policy Studies publication argues in

Watchdog

11

"recommend of some kind should be actively ("Open Regionalism? NAfTA, CER and a Pacific Basin Initiative", 1992, p. 192). The Government launched this book at a Beehive function on 17 November last year. Prime Minister Bolger was already expressing its views a year or so before the launch, e.g, see report by Suzanne Pollard of NZPA in the "Christchurch Star", 5/10/91.

This book requires a future lengthy analysis. In the meantime, attention is drawn to the extensive and fast growing literature on the issues involved in N Af'T A and the work of people's movements to counter N AFT A's threat to employment, labour conditions, health and food safety, the environment, and basic human rights. NAFTA is a recipe for increased inequality and injustice. The banner for opposition to the N AfT A agenda, and for the development of positive alternatives, is held high in "Trading Freedom: How Free Trade Affects our Lives, Work and Environment", edited by John Cavanagh, John Gershman, Karen Baker and Gretchen Helmke (The Institute for Food and Development Policy, San Francisco, in association with the US Institute for Policy Studies. 1992). A collection of writings by activists and analysts spanning the US, Canada and Mexico, this work provides a fund of information to assist NZ campaigning.

Rise of a New Internationalism

Let John Cavanagh speak: "Through the international citizens' dialogues that are already under way, we must layout an alternative agenda wherein connections between our peoples and our economies enhance basic

In

human rights, the long-term sustainable use of our natural resources, and the economic viability of our communities. We must challenge the promoters of free trade at each stage and we must, at the same time, offer viable alternatives"

It is probable that the Dimon Administration will be considerably more receptive to domestic criticisms of free trade. Certainly, the US moves to limit its beef imports and bolster its dairy exporters will hurt NZ producers C'Press", 2811193). They make a mockery of the US-N.Z. trade/investment Agreement Thus we need to respond affirmativel y to Harland' s challenge of being "on our own". We need to be more self-reliant. But the pressures for subservience are yet still likely to intensify. As the GAIT Uruguay Round flounders, NAFTA and other regional trade pacts are coming to the fore. Aotearoa/NZ should try to keep on good terms with its trading partners while choosing greater selfsufficiency and a more environmentally sound economic path.

In their pro-NAFT A study, Holmes and Falconer state that, "In our view, it is feasible to negotiate a link between CER and NAFT A within the very near term" (p.B7). The National Government is currently trying to overturn Aotearoa' s nuclear free stand in preparation for entry to NAFT A. Relinquishing this may even be our admission fee! Our independence is thus being sold out right now in a carefully orchestrated fashion. It is time to really mobilise resistance and defend our rights! Public debate has to be further stimulated and citizen action increased. We can link with like-minded international support. The corporate free trade agenda is serving to arouse, activate, expand and maintain a worldwide people's movement for development which is egalitarian, sustainable and participatory.

Watchdog

Page 12

I

The United Nations Centre on Transnational study in depth in World Development".

the publication back to 1988, its coverage

of facts and wen comment will

useful many yearn to come.

An example how publication is, can

found in its description of the activity of transnational

corporations in health service.

No doubt, if the Government insists on its privatisation plans (following Sir Roger Douglas' leadership and advice), the transnational corporations which are already putting health care in the jigsaw puzzle of profit-creating international marketing activities will look at New Zealand

hospitals.

Leading are corporations from the United States whose overseas for-profit hospitals have increased rapidly in numbers.

the end 1986 125 for-

eign hospitals had been established in 19 countries. No doubt by now these have

As the table

in 1986 11

some hospitals rather than owning operators manage some

are with.

the hospitals for 81 were owned,

the balance managed. The is the list 11

transnational hospital presented in UN

Centre's on Transnational Corporation's survey.

Transnational

Name

American

Paracelsus Hcalthcare International

Universal Health Services

3

there ex-

hospital corporations operated only one was non-American:

transnationall y, the German Paracelsus

corporations operated predominant] y in the

dle East, Western (especially the United King-

dom), the Pacific area Americas.

However, it is remarkable that in countries where according to the publication quoted here:

"national care are safe, affordable and efficient enough to meet the demands of the people (as

in Canada, Germany, Japan, New Zealand,

the Scandinavian countries) transnational hospital COfhave not set

only firm

is Hospital Corporation recorded from its international ventures of over $US9 million in ] 986. The Centre comments:

"If these profits arc suggestive of

seems foreign-operated """~ ...... "

are here to stay".

There are comments on the nature the

these chains:

1

"Transnational hospital firms are also successful where

local health arc inadequate, Since their

are usually higher than those of national hospitals, they are primarily patronised by the more affluent parts of society - which in tum may decrease pressures for upgrading national health facilities".

Regardless of the ownership nationality the private for- profit hospi tal section of national health sectors, the above comments concerning the suitability and consequences of privatisation arc worth studying.

"THE A

ERICAN DISE

SEn

This is a hardhitting 25 minute video, produced by Reject Americanised Health, in Wellington, It examines the horrifying facts of the privately owned, profit driven US health system. Humana Corporation (see above) features prominently. It is no laughing matter - people are bankrupted, maimed, suffer, are physically dumped out of hospitals, and actually die if they haven't got private insurance, or can't pay the bills. One case details how a baby dies when its respirator is repossessed.

This video is aimed at showing New Zealanders the reality of the health model that Simon Upton and the new layers of health bureaucrats are imposing on us. It should be seen by everyone.

In Christchurch, contact CAFCA,

or the Canterbury Health Coalition, Box 884, ChCh (Koa Saxby, ph 3588495).

Elsewhere, contact Vanguard Films, Box 3563, Wellington.

L

LI

Today's Letter is D

Deunionisation

Comalco was one of the first to take full advantage of the Employment Contracts Act A "Time" cover story C'Wages of Fear", 14/12/92) included this:

"At its Tiwai Point aluminium plant at the foot the South Island, Comalco last year abandoned union agreements and negotiated individual contracts with its 1150 workers. Although it did not outlaw unions, the company stopped deducting union dues from wages and discouraged on-site meetings. The effect on the Engineers' Union was catastrophic: membership has fallen from 700 to 200. Wages have risen, morale among workers is high, and the company estimates a 30% increase in productivity. Union assistant secretary Ged O'Connell admits the union was out of touch with workers. Comalco now offers staff superannuation and payment of children's school fees".

This rosy picture of employer paternalism doesn't deal with Comalco's real aim: to use its New Zealand precedent to smash the unions at its much bigger and more important Australian operations.

"A concerted push by the aluminium group Comalco Ltd to reform work practices is placing increased

strain on the company's relations with its unions. The CRA Ltd subsidiary has been moving to boost productivity at its Australian operations after winning significant improvements in efficiency under radical new industrial relations arrangements adopted at its aluminium smelter at Tiwai Point in New Zealand.

..... With earnings under severe pressure because of the collapse in world aluminium prices, the company is looking to achieve similar improvements in labour productivity at its Australian operations.

"But these moves are likely to be hampered by a deteriorating relationship between the company and its Australian unions. particularly at its two aluminium smelters at Bell Bay in Tasmania and Boyne Island in Queensland. TIle main union covering workers at the smelter, the Federation of Industrial Manufacturing and Engineering Employees, yesterday accused the company of deliberatel y attempting to exclude unions" ("Australian Financial Review", 1/5/92).

Cornalco's managing director, Kerry Mclxmafd, detailed the downturn in the aluminium market, in his paper on "Manufacturing", presented to the October 1992 Japan/New Zealand BUSU1CSS Council annual

In the year ended June 1992: were still the

since reflecting the sharp

was "New Zealand's

in Manufacturing and Resource Not surprisingly, Comalco is gung ho reforms" of the last 2 governments, and specifically the Employment Contracts Act Some extracts:

"The 1992 World Competitiveness Report (!) confirmed the decisive improvement in New Zealand's performance, Ranked 18th in 1991, New Zealand lifted to ISth place in 1992, ahead of Australia,

and Norway. The ranking is assessed on 8 factors related to competitiveness .. .In terms of the competitiveness of government policies, New Zealand went from Sth to Ist place, in contrast to Australia's 13th ranking ...

"In spite of the political unpopularity of policy changes by both Labour and National governments, the policies of reform towards a more competitive economy have been consistently sustained for nearly a decade ....

"There are no guarantees about the future but generally the bipartisan nature of the changes has been encouraging, While aspect'; of the changes are controversial and politic ali y unpopular there is nevertheless an understanding in the communi ty of the necessity of the policies of change. Finally, the changes are not superficial and cosmetic, but

undamental, to an extent that will make practically imposslble to reverse. These factors support the view that this is a sustainable, long term change in. New Zealand's competitiveness".

said that: "Worker productivity had the firm's international competitiveness decisively" ("Press", 1/12/92). Now he is dangling the carrot contracts for the depressed engineering specifically in Canterbury- IF Comalco doses a flew supply deal with Electricorp. McDonald was quoted as saying, in the same "Press" report, that constructing a fourth potline is unlikely (because Comalco to concentrate its major expansion in

the Gladstone station

and

"The Wholesale Electricity

has been prepared by group

by a former National Deputy Prime Minister, Mr Jim Mcl.ay .. .It was prompted by hopes that new generating companies would compete with Electricorp for the wholesale suppl y of electricity.

" .. .It was not by the Government involved its biggest SOE, Electricorp, plus national grid operator, Transpower, It also involved the Electricity Supply Association, and big electricity users like Comalco, BlIP New Zealand

Fletcher Challenge and Holt

. .. A new company comprising players

could be necessary ... Existing contracts with big direct users like Comalco would be left to run their course, if necessary.

" ... 111e study docs not the

proposed new market, but aims to create a climate in which several against Elcctricorp ... "

1

i 1._ ~ .. : - '

ZERO IE R 0 Z E R 0 I Z E R 0 1.~:~.~.~:.~:~*:*O.~.1~

, I

I I

I _. I

I I

I

in TV cameras. So he did what failed

likelihood of Comalco securing Manapouri for itself came significantly closer with the Government's announcement, in December, that it was splitting Transpower from Electricorp, ownership of the national grid being divided between Electricorp and power distributors. The Crown will retain a controlling "Kiwi share" (remem berthat from when Prebble flogged off Telecom tothe Yanks"), One of the more observant reactions came from Iona Holsted, the PSA 's industrial officer:

"There doesn't seem to be anything in the future to stop a large consumer like Comalco buying Lake Manapourl, generating its own electricity, and demanding significant say in how the national grid operates" ("Press", 23/12/92).

New Zealanders have every reason to fear these multinational monopolies controlling our electricity supply market, and, specifically, have very good reason to strenuously resist Comalco acquiring Manapouri.

Deniabllity

Rio Tinto Zinc, the world's biggest mining company, and Comalco's ultimate parent, has decided to go onto the offensive re the environment, and deny that mining wastes are any of its responsibility.

RTZ chairman, Sir Derek Birkin, told the London Metal Exchange annual dinner:

"Society as a whole. rather than present mining companies and their shareholders benefited most from those wastes, It would be more honest, if politically embarrassing, for the costs of cleaning up old mine wastes to be recognised as the taxes

RII

Hie RTI. ("011',11,11"",1:'11 11IV1I1I:Nll (lr-,: ()i(Plr';\I(Y .'.11 11/'/',

Midland Ui-l!I111~1I. ~doi:::

BfI:i[O! C!tY' Off1ce! 49 Corn ;',111"'1 HI!:il,i! 1",~i';J V'I'

1'\\ ZERO ZERO ZERO
(11\1\
M HORTON
218 LIVERPOOL ROAD
LONDON
Nl lLE they are, rather than disguised as moral commitments".

He claimed that governments, which in other areas of the economy allowed market forces rein, are "unduly disposed" to regulate in matters environmental.

"Concern for the environment has become like motherhood. Too many people unquestioningly accept any policy put forward to preserve it". Describing the scientific basis for many environmental policies as "questionable", Sir Derek concluded "and their possible benefits are out of all proportion to the inevitable heavy costs" ("Financial Times", 23/10192). So there you have it in a nutshell:

We pollute, we profit. You pay,

A slightly less blum version of this was presented by Conzinc Riotinto Australia, Comalco's immediate parent, and itself the 6th largest mining company in the world. George Littlewood, CRA' s vice president for external affairs. told a Las Vegas conference of the American Mining Congress that the Rio Earth Summit had advanced the cause of the environment movement's campaign against mining, and that the industry had to strengthen its own international networks. He adopted a high ethical tone.

"It is no more ethical for this generation to pass on to succeeding generations a degraded economy than it is to pass on a degraded environment., Morality is on the side of development as well as on the side of those who genuinely care for the protection of the environment ("Financial Times", 22/10/ 92).

Coming from a multinational that has ravaged indigenous lands over several continents (eg Australia, and Bougainville, to name but two regional examples), these fine sentiments are both cynical and laughable.

63

14-D[[··92

023706

Murray Horton's stake in RTZ

a all12p of it.

Watchdog

16

The major stumbling block in the GAIT negotiations has the wrangle over agricultural protectionism (import barriers/subsidies) between and the United States" But the Agenda 21 process arising out of the Earth (June 1992) has been up a bit with these international trade talks, and with "free" trade in general, Lately, environmentalists have been having some effect in getting debate on the implications of free trade for sustainable development.

What are the likely effects of this trade on the environment? While the GAIT may be collapsing, the North American Free Trade Agreement (NAFTA) into which Aotearoa/NZ could soon gravitate has pretty much the same sort of implications for conservation and resource management.

Forests

To quote a study on which we shall draw a lot: "Free trade promotes economic specialisation and trade dependency, which can lead developing countries to clear

forests in order to cam foreign currency for imports." Free trade may adversely affect the efforts of developing countries to reduce raw log exports and process timber domestically. Since countries can earn more from processing this can help slow forest cuts. But export restrictions are already open to challenge from other countries under fie current GATr. National conservation programmes will also be open to attack as unfair subsidies.

Agrlculture

"Free trade agreements may have a positive environmental impact by curbing agricultural programmes that promote surplus production - and the resulting environmental damage - in Europe and the U.S. But they may also eliminate environmentally beneficial subsidies, such as soil conservation programmes or wetland and habitat protection schemes. Free trade may also foster more unsustainable large-scale, capital-intensive farming."

--------------------'----------.,

(Cont'D Overleaf)

Wins

Slashed

updated readers about the hydraheaded CRNComa1co monster, it's appropriate that we update you on foremost nemesis, Roger Moody, of the London based PARTIZANS (People Against Rio Tinto Zinc and its Subsidiaries), and Mine Watch,

Gumver File", Roger's 894 page encyclopaedia of mining companies (including our mutual friends) was reviewed in "Watchdog" 71, 14 years in making, it is an epic in every sense,

Two things need updating since the review appeared. Firstly, the prestigious English newspaper, the H(;uardianu, featured it as one of the top 10 environmental books for

Secondly, the has been slashed. The review described its original price as "astonishing". And it was. 150 pounds, plus 16 pounds for post and packaging. There was a second quid for NGOs. But for almost everybody, a book costing

nearly $NZSOO is just completely out of the question.

Coincidentall y or not, Roger has written to us (26/12/ 92) saying:

"WE

THE PRICE TO

never have been two tiered in the first place, and this was largely my fault (Paranoia about the mining industry buying the entire print run and pulping it)".

So, is now available for around $NZ75~80.

Plus extra 16 pounds for airmail post overseas

(it's a big, heavy SOB of a hardback).

Order from:

Liverpool Road, vu"""""'u N1 1LE, England.

Ph,( 44) 71 609 1852.

(44) 700 6189.

11

"Programmes that reduction may be challenged as unfair subsidies. And, by removing barriers to international GATf and the NAFI'A may create regulatory flight' to countries with lax pollution regulations or enforcement." So countries that specialise in slack environmental regulation would be able to gain a comparative trading advantage over other countries with stricter controls.

Hazardous Waste

"Free trade advocates believe that hazardous waste should be imported and exported as freely as any other product. U.S. laws that regulate hazardous waste may be "harmoniscd' downward to fit international standards set by GATI' and NAFTA."

Global Warming

"Free trade agreements aim to stimulate production of more fossil fuels, thereby lowering their costs and increasing their use. This could undermine efforts to forestall global warming by reducing carbon dioxide emissions. GAIT may also nullify the global warming treaty launched at the Earth Summit. If the treaty should employ trade sanctions in the future, these sanctions would vulnerable to GATT challenge. Also, national efforts to comply with the treaty by imposing conservation measures could all be undermined by sweeping efforts to eliminate subsidies and harmonise standards."

These are then a few major examples of how damaging free trade can Third World nations, like Aotearoa/ NZ, rightly fear barriers being put in their way suppos

reasons,

Y N environmental

agenda is to have

So far as this is it is hard to see how the Resource Management Act could work to protect our environment The Act is billed as discouraging "unnecessary controls and (Ministry for the Environment booklet) and in this sense fits in with the free trade agenda but, on the other hand of course, local authorities supposedly have the power to set and regulate standards, measures, and so on. Under N AFT A or GAIT these could all be open to attack as distortions to trade. Standards like food safety regulations are already being lowered under CER. A government-backed study - "Open Regionalism? NAFI'A, CER and a Pacific Basin Initiative" by Sir Frank Holmes and Crawford Falconer (Institute of Policy Studies, 1992) - has only half a page on the environment (p.30) and a totally inadequate assessment. (Compare, for instance, John Warnock's article, "NAFfA and the Environment" in 'Briarpatch', Dec. 1992/Jan. 1993, pp.38-40). Free trade would render void the safeguards of the Treaty of Waitangi, probably our best protection of all,

If the term "sustainable development" is to mean anything in the years then we must be prepared to contest. the corporate free trade agenda as strongly as possible.

(quotes from "A Guide to Trade and the Environment" by Thomas Wathen, Environmental Grantmakers Association & the Consultative Group on Biological Diversity, New York, July 1992)

etters

ASPEN INSTiTUTE & BIG BUSINESS

25 October 1992

Dear Editor,

In the April edition of "Watchdog" (69) there was an article on big power strategies in the Asia-Pacific region (pages 18-24), which describes how business interests which expect to gain from free trade work together, and an article on the payment by Douglas

Myers (of Lion Nathanj.ofLabourpolitician Dr Michael Cullen's trip to the Aspen Institute of Humanistic Studies, USA (pages 30-32). There is a link between the two stories, for the Aspen Institute has long been interested in fostering Pacific Rim contacts.

1980 was the year of the formation the Pacific Economic Cooperation Conference (PECC) , mentioned

in your as a grouping current and

former government private sector business-

men and right which

= Asia Pacific

"F'''''''''" (with the Humphrey Institute of Public of a "Pacific Basin Planning Session". Amongst those present: was Mark Earle, Director of International Studies at the Stanford search Institute.

At the Sixth PECC meeting at Osaka in 1988 the US team included Mark Earle, who was then Directorofthe Pacific Rim Program of the Aspen Institute. Interestingly, the Pacific Basin Economic Council (our old nemesis, PBEC. Ed) was represented by Standing Committee member Ron Trotter, of Fletcher Challenge.

It is no surprise that people who believe in, and profit from, free trade should form associations. It is similarly no surprise to find that the Aspen Institute, which was set up 1.0 foster inter-country dialogue, should take an interest in the Pacific Rim. And it is to be expected that they should provide services first and foremost for those who can afford to pay. There is little spare cash in the hands of the left, or environmentalists, so it is only natural that the market should demand courses which are attractive to the wealthy right

Those with sufficient money are of course interested in paying to send potential national leaders like Cullen to a place of their choice, to be taught policy ideas which might benefit the benefactor. The problem is with the intellectual and moral bankruptcy of the current Labour Party. For sadly there seems to be no one to pay for Cullen to listen to those here in New Zealand who might present an opposing picture.

I feel particularly annoyed because I am one of locals passed over by this process. Some years ago, I carried out some modelling for the Commission for the future, which showed how free trade could be expected to destroy a large part of New Zealand manufacturing, and that is just what has happened. I could explain why that should be so, but can find no one to pay me for the information. Perhaps those facts would be too embarrassing to the free trade pundit".

Yours sincerely,

(Sgd) John Robinson M artinborough

The Editor "Watchdog"

I was both incensed amused your story on bulk water export from South Westland "Watchdog" 71). Incensed that industrial development in a national park could even be considered. But I wasn't surprised. 'That pack of pricks we call the Government win do anything for money.

Then I started thinking about the proposed use of the water, It would have to be for drinking water, and untreated - it wouldn't be economic if it was still to be treated. But what about giardia? It's already in the South Island and it's only a matter of time before it reaches South Westland. When that happens the water will no longer be safe to drink. The only conclusion I can come to is that Okuru Enterprises, whoever they are (cowboys no doubt), haven't told their foreign partners about giardia. Perhaps we ought to do the decent thing and let them know, preserve New Zealand's good name, etc.

But all this is a bit passive. Why don't we take more positive action? I've always wanted to tramp the South Westland forests. 15 kilometres along the pipeline would get me wen into the forest very quickly. I will have been drinking lots of water from the unpolluted streams along the way. so by the time I get 1.0 Tuning Fork Dam, nature win definitely be calling.

It win give me great relief, physically as well as psychclogically, to stand on top of the dam and piss into that pure, unpolluted water below. Anybody

want to come me'!

Name withheld to avoid future embarrassment.

So there you have A clarion can for indecent

sure and casting offensive matter, all in the name of a noble cause. The cause of keeping Aotearoa green (and, depending on the time of year, the effect might be to tum some sensitive organs blue). Flora, fauna, genitalia. It all seems so -natural! Our anonymous piss artist has suggested that we announce a 1: 1 subsidy for Okuru Enterprises ie subscribers offer to personally do their bit to double the flow into the first tanker to fill up. If enough flashers turn up to shake off the drips amidst grandeur, it could help the depressed South Westland economy. You could make it a social event But instead a pub crawl, it would be a water crawl;

19

And if

",-,rn.-'.v"", else's 'Uvc,.>wu,,,,,,.

honest to Kiwi urine

was allegedly foreign tourists who introduced giardia to our hitherto pristine mountain waters, so lets give it back to the bastards.

As for Oleum itself, the opposition has paid off (partially). Dennis Marshall, Minister of Conservation,

I S

(This was presented, in November 1992, to the special committee hearing public submissions on Southpower' s future ownership. This process was repeated all over the country, as required by the Energy Companies Act 1992. While this was being presented, by Murray Horton, the Campaign for People's Sovereignty picketed outside the Christchurch City Council building. CPS made such afuss about the public being routinely excluded from Southpower Board meetings. that representatives were invited to the December meeting. not only to attend but to address the Board. The 3 speakers were Ken Martin, Reg Duder, and Murray Horton. All were received in total silence. Cl'Sfinally broke through the news media blackout on its Southpower campaign, by getting a "Press" reporter allowed into the meeting the first ever time, and generating sympathetic coverage. Previous press statements had been ignored. Murray's speech consisted of reading this CAFCA submission, directly to the Board. Teeth were heard to be ground. Southpower chairper-

son, Sue that once it becomes a

company [April 1, Board won't even

pretend to be open to the public).

OUf title is self-explanatory, and our interest in this subject is accordingly obvious. We are fully aware that the Southpower Board and its majority shareholder, the Christchurch City Council, have emphatically stated that Southpower will not be sold. either to an NZ or foreign private owner. We appreciate that the situation is different from that of other power boards , particularly in the North Island, where sales to energy multinationals and share issues to the public. are about to become realities, or already have. in some cases.

So, first, we congratulate the Board and local bodies for that emphatic statement that Southpower is not for sale.

decided that the outflow pipe could not pass through

any part of Mount Aspiring National But he's

qui le happy to have it situated me park

boundary, which has been welcomed by Okuru Enter~~ ~ h~ vowed to keep up the fight.

And the rest of you, practise pis sing on things that despoil the environment If you live in Christchurch, we suggest you start with the gondola. Trickledown is the name of the game, so get trickling, greenies!

LI

R N

However, we don't see much in the way of guarantees in the Draft Establishment Plan. We have the promises of politicians, but with the greatest of respect. the NZ public has grown ever so slightly cynical about them. And with very good reason.

Yes, the Draft does say that any shares offered for sale must first be offered toexisting shareholders. butif'they decline to bu y. then the Directors can offer them to any individuals or organisations as they see fit. This disturbs us. What is to stop a future set of directors selling Southpower in this manner?

Southpower is, and remains, a publicly owned asset. Any share sales should only come after approval by the public, by means of a poll.

Onceitbecomes a private energy company, Southpower will retreat even further behind the veil of " commercial sensitivity". Its Board meetings are publicly notified, yet members of'the public (including myself) have been routinely excluded from entire meetings. And not just part of a meeting. or one whole meeting. We have been excluded from all parts of all meetings. Likewise, with a special City Council meeting to discuss Southpower,

Meetings of the biggest power authorities, such as the Auckland Electric Power Board, are open to the public. But Southpower routinely conducts all its business behind closed doors. This gives us no reason to trust the promise that future Boards will act in the public interest How will we know? We have no way of observing the current Board in action.

We buy the argument that Southpower should take over all or part of smaller South Island authorities (such as in Timaru share swap deal). The argument

20

That into the hands of the Minister of Energy,

John wants to restructure the electricity

one consisting of maybe 6 compet-

We are alarmed by Southpower's mission statement:

"To be the preferred supplier of energy and related services in New This empire building braggadoccio has no mandate from the Christchurch public, who would be quite happy Iorit to stick to its job of supplying electricity to Christchurch and surrounds. This could only be achieved by mergers and takeovers that would very quickly remove Southpower from the control of the people of Christchurch, and

quite from the people of New Zealand.

The Draft Plan commits Southpower to energy efficiency. We don't see any specifics. Indeed, a supply system consisting of competing companies will try to outdo each other in selling electricity, not by encouraging conservation. The private sector does not operate by saying.'Please don't use our product". It was this zeal to sen electricity, above all other considerations, that landed us in the Electricorp disaster of this last winter. We totally reject the view of the Maruia Society, a conservation group should know better, that priva-

tisation is to achieve energy efficiency.

We find in a strange alliance with Mr John Collinge, president the National Party. and until he

was recently, chairman of the AEPB. He says,

in a interview (14/11/92): "Privatisation is

great, and has worked wen in many cases. But this is privatisation of a monopoly, 'There's been nothing else

it. Where you have a monopoly there are undue risks the public". He also describes the AEPB as "a licence to money ... an easy business ... Everyone likes running that sort of business because the opportunities are so immense". Exactly the same applies to Southpower,

certainl y don't exempt current Southpower policies

from Specifically, we are opposed to the

"""-,~'J!V"w,.u"", to the benefit of commerto the disadvantage of domestic users.

example corporate agenda that has

landed the country in the mess treatment?

can't number

find increased power bins an impossible yet Southpower is them monthly, despite Christchurch having just endured the most vicious winter in memory. 111is is an abuse by a monopolyother forms of heating are banned, or extremely expensive.

Be that as it may, we favour retention of the existing public ownership of Southpower, with some form of accountability through ownership by elected local bodies. But that accountability is tenuous now, due to Southpower's obsessive secrecy, and may become non-existent when it is a private energy company.

Its mission statement must include a commitment to energy efficiency, and scale back ambitions to serving the people of Canterbury only.

Most importantly, it must emphasise public service above all, not selling electricity for profit. There is a huge difference between supplying and selling. Electricity is essential for everyone, and such a strategic asset must not be subject to the whims of ideologues temporarily occupying office, nor be hijacked by private sector profiteers. Southpower belongs to the people of Christchurch. We've already paid for it, and you have no mandate to place it beyond our control.

RECOMMENDA nONS

lISouthpower must remain in accountable public ownership.

21 Southpowers mission statement must specifically commit itself to public service, as opposed to profit making.

3/Sm.l.thpower's mission statement must confine self to Christchurch and Canterbury.

4/The establishment plan must emphasise energy efficiency and affordabillty.

Strhe secrecy that currently surrounds South power '8 decision making must be removed.

6/The establishment plan must contain rock solid guarantees that Southpower win NEVER be sold.

Southpower Update

Southpower wrote to us (and to everybody else who made submissions) advising which changes had been incorporated into its final Establishment Plan. Some covered concerns that we had raised eg "energy conser-

to the Mission Canterhow-

consider meeting social obligations from dividends received from the Company". It's worth noting the Laurie Manion, a member of the Central Canterbury Electric Power Board (one of South power's owners). He said that the public submissions had been "ignored" ("Press", 15/12/92).

Southpower is cash rich, in fact. Indeed as a result of the winter power cut savings, it was paid $8.5 million by Electricorp (only Waitemata Electricity got a higher payout). This was the unused power that Southpower sold back to Electricorp at very high "spot market" prices. This will not stop Southpowerincrcasing its charges however. Since May 1992 it has been increasing domestic bills monthly, to reach a total increase of 13.42% by May 93. But now Electricorp is indicating it wants an additional 2% rise to cover the cost of extra protection against droughts. Once Southpower becomes an energy company, bills are likely to be restuctured toincrease the fixed line charges ("Christchurch Man", lbe average $100 power bill consists of 50% for energy costs, 20% transmission, 27% line charges, and 3% supply authority costs.

the very fluid supply authorities to the

The to corporatise,

foreignise

Services over ownership of key assets,

waste and the port.

How ironic that "dinosaurs" should now freely roam in

the that the 1980s decade

re gis te red n"",,,n,,,11,,,.n

sation plans of the AEPB and "V'h"'?~

Electricity, The upshot is that both pull in their horns somewhat The AEPB was to give consumers 75% ownership, but only 40% of the voting rights; Waitemata was the frontrunner in planning to issue tradeable shares to consumers. Both schemes are now thought unlikely to be approved by the Government ("Press" ,9/11/92). Tauranga and Westem Bay of Plenty district councils, seeing which way the wind is blowing, resolved to hold a poll to find out what the public thinks about privati sing the Tauranga Electric Power Board ("Press", 21/10/92), These are just some of the examples of highly visible back pedalling by previously gung no privatisation zealots. They've got the message loud and dear from the public - over our dead bodies.

Predictably. the Manufacturers' Federation has called for power authorities to be privatised and to issue fully tradeable shares ("Press", 28/12/92). It has been joined by our old friend, the Maruia Society, "Watchdog" has regularly subjected Maruia policies and utterances to critical scrutiny in the last year. WeB, Guy Salmon has outdone himself on this one. The October 1992 issue of "Bush Telegraph", Maruia's newsletter, is entirely devoted to urging members to lobby MPs for full power authority privatisation, with fully tradeable shares. It urges acceptance of the US model, claiming private energy companies there have (in some cases) attained energy efficiency. It's full of priceless quotes. Here are some:

"Community ownership is a tired old idea which didn't work in Russia and didn't work in New Zealand either ... (community trusts) reflect the the defensive reaction of a community that's turning inwards, The beneficiaries are the old networks oflocal power boards and privilege ... The reality is that it's very difficult in practice to make community trusts really accountable to the communi ty. Sooner or later they become vulnerable to takeover by vested interests".

Salmon presents Waitemata Electricity as the "Marketbased model". Its CEO, Doug Heffernan, is presented as a model green capitalist. "Bush Telegraph" says:

"It is important that electricity prices reflect the true cost of production ... " Lo and behold, Heffernan agrees, saying electricity is "too damned cheap ... The problem is that the resource is not priced at its value. It's priced

at some old cost.. What we're to find

is a the users It's trying to

commercial common sense to come but not

have consumers

South Island pension-

is damned cheap".

As for Guy, he's appointed as amemberofthe new Energy Resources Monitoring and Conservation Authority. He and his such as Heffernan, had better hope that "existing consumers" do not decide to get "socially disruptive" and besiege the well heated mirror glass towers of the ideological 1 y pure. A bonfire of Rogernauts would generate qui te a lot of electricity. But the smell would be a problem.

If In Doubt, Blame the Weather

Even the "Press" was sufficiently moved LO write an editorial entited "A slap on the wrist" (15/1/93) LO vent its feelings about the findings of the official review into the winter 1992 power crisis shambles. The finding essentially was that neither Electricorp collectively. nor anybody in it, was to blame. Nope, it was all the fault of the weather. This finding was foreshadowed by committee chairman, Sir Ronald Davison. saying:

"There is clearly a sector of the public that believes Electricorp is more concerned with profits than conserving water in the South Island hydro lakes. The process is a difficult one for Elecrricorp. It has to balance providing power at a reasonable price against the conservationists' demand to maintain lake levels. The more hydro power generated, the cheaper the price. If we turn on all our hydro and thermal stations we could get through, but then the public would be paying an awful lot for their power" ("Press", 15.10/92).

Electricity Supply Association disagreed with the report's findings, saying the cockup was "due in large measure to management decisions taken by Electricorp and not just the weather" ("Press", 13/1/93). The report also cautiously endorsed proposals to create a wholesale electricity market (see the "Deregulation" subsectionin "Comalco's Litany", in this issue), but the Major Electricity Users' Group said that. it "bravely assumed that a wholesale electricity market would be a panacea for any future electricity shortage. MEUG has yet to be convinced" (ibid). The cost to the economy of the power crisis has been calculated as causing a 0.8 % drop in GOP the September 1992 quarter. Comalco selfrighteously claimed that partially dosing down the Bluff cost NZ about $58 million in lost export revenue ("Press",4/2/93).

than one third of its costs in restarting that potline [ibidj). This means that Electricorp a $150.2 million profit, in the 6 months to September 30, 1992. This was half of its profit for the corresponding period in 1991 ("Press", 16112192). What's worse, according to Electricorp documents obtained by Greenpeace, people were so assiduous in saving electricity that they threatened Electricorp's profits. They weren't buying its product Oh dear.

It was all too much for Dr Deathhead Deane - he's quit as Electricorp chief'executi ve, and moved on to become Telecom boss. Yet another reshuffle in the game of musical directorships among the tiny clique of Rogernauts. It is believed Deane left because of the "growing intrusion of politicians into Electricorp's affairs" ('Prcss'', 10/10/92). Just remember now- if the phone system melts down, blame the weather. All the rats arc deserting the Electricorpship. Johnfernyhough, its chairman, and prominent New Right leader, is resigning on June 30. (He believes that once this wholesale electricity market is established, Electricorp should be privati sed). "In recent months. the corporation 's chief executive, treasurer, human resources manager, marketing head and chairman have left or an" nounced their resignation" ("Press", 5/2/93).

Mention of Telecom reminds us. The Government announced, just before Christmas, that it is selling off Transpower, the national grid company. Half of the shares will be sold to electricity supply companies. for a non-negotiable figure of about $1.35 billion. The rest will be divided between power generators (exclusively Electricorp at present, but hypothetically others

the proposed wholesale electricity market happens), and the Government retaining a Kiwi Share. And who is the chairman of the Transpower Establishment Board? None other than Dr Peter Troughton, former Telecom CEO, and a favourite hatchet man of the Rogernauts. Those musical chairs must be getting worn out by now.

The "nobody is to blame" finding has become a familiar refrain from these officially appointed whitewash committees. The "bad blood" inquiry found that absolutely nobody was to blame for the potentially fatal scandal of infected blood supplies, and certainly not Babyface Upton. That must have been the weather too.

costs the

Centre. Following a series of militant outside the April

1992 New Investment Conference, the Peo-

ples Centre was police. To quote (again) from

the "AUWRC Newsletter":

"The meeting had about eight

plainclothes entered the Peoples Centre,

ordering people about in an and rude manner, even those who hadn't been invol ved in the protests at all. As the were aimed with a search warrant allowing them to look for various items such at; "paraphernalia used in the making of bombs' the Centre had to reluctantly allow the search to or people could have been liable for arrest for obstruction. The detectives proceeded to ransack through a number of offices, personal bags and filing appearing to pay

"B ritain continues to be a significant overseas inves-

tor in New British investment

here is estimated at well over $6

billion ... Many New Zealand's best known companies have strong British connections. The British company Glaxo, one world' s largest pharmacontinues involvement in

a $13 extension already

under way to its already substantial factory in New Zealand. 's has extended operations in Dunedin. The National Bank, wholly owned by Lloyds Bank, has recentl y purchased the Rural Bank. Last year the Bank of Scotland moved to full ownership of the recently merged Countrywide and United Banks. The Scottish company, Stagecoach, bought the Wellington City bus system. New Zealandis the only country outside Britain where Barbour raincoats are made ...

particular attention to financial records, diaries, wallets, and membership lists.

"After-the detectives had been in the building about ten minutes a number of other police entered, both uniformed and plain clothes. At this point one of the detectives hit one of the Centre members who had been asking for his identification. 'Ibis was the catalyst for a number of assaults on people in the building, including some, like the Centre receptionist, who had never been on a demonstration in their lives. A baton charge was made against people sitting on the floor. One of them, Sam Buchanan, was hit so hard in the head and eye with batons that he ended up in the intensive care unit of Auckland Hospital,.."

The case was heard later in the year, and Judge Kerr reserved his decision until December 22. it turned out to be an cady Christmas present for the 6 people arrested during the raid Sue Bradford, Bill Bradford, Jeremy Martin, Janice Turd, Sam Buchanan, and Ross Gardiner. He dismissed all charges. To quote from the "AUWRC Newsletter", February 1993:

"In his decision, he gave several grounds for dismissing the charges. Firstly, Judge Kerr ruled that there were no reasonable grounds for the granting of a search warrant on the basis of the information supplied in the police's application for it. On these grounds he quashed the warrant as invalid. Secondl y, he ruled that the terms of the search warrant were far too wide and unspecific, giving neither the occupants of the Peoples Centre or the police executing the search warrant enough information about what they were looking for. For these reasons also, the Judge found the warrant invalid. On both these grounds, Judge Kerr concluded that the police were not acting in the execution of their duty, and the prosecutions therefore must fail.

"However, Judge Kerr went further than this. He decided that the police had not proved that anyone had committed any of the offences for which they were charged. In his judgement, Judge Kerr made a number of comments condemning the police behaviour during the raid and their evidence at the hearing. These include:

""fhe advance Detective Smith and others

without r""!rl>{';~i,,(' was unwise, The to

the

held by Detective "U'~H""'F," holding in a wrist lock, he have in considerable pain. Why it was necessary to continue to hold him as I have does not seem explicable .. .I am driven to the conclusion in relation to the alleged assault by Bradford, that

tives Smith and Smallridge elected to remove him from the room. In order to justify the method used, the assault about which I was told was then created .. ,

"<Police officers say that (Detective) Gannon used one hand only. I am heard the evidence given by the defendants and witnesses on their behalf, that Gannon used two hands which he out horizontally at chest level into Martin with some degree afforce .. That which the detective to Martin.whilst perhaps understandable was quite How-ever the actions and movements as described by

the

not account of

Buchanan's assault on Detective Beal and it seems

to me too the [o-",L"U"",U,Hn' hit in the eye is most ",","'u,~,

Buchanan

This is a stinging rebuff for one the most

blatant brutal police thuggery in recent

(who can forget the sight of Sam Buchanan's eye"), it is not over yet There are still charges outstanding arrested the day (including charges of a s saulting the cops); Sam Buchanan's eye is permanently damaged; and the cleared defendants are getting legal advice about taking the police to court, and dem anding a public inquiry into the raid and resultant thuggery.

AUWRC still needs money towards it.;; seemingly endless legal costs. Ie s the price they pay for being a genuine and militant representative of those dumped onto the scrapheap of capitalism.

can be sent to: AUWRC Defence Fund Appeal, Box 3813, Auckland L

\

July

and

.-----~~ .. ---

What's this aU about?

by

The Overseas Investment Commission (0[(') was set up to oversee foreign investment in Aotearoa. Under its legislation. it can, within guidelines set by the Minister of Finance, reject applications for overseas investment if they do not meet certain criteria. Those criteria have for many years been set to be so lax that the Commission rarely rejects any proposal. However. all overseas investment worth $10 million or more. and all overseas investment in "sensitive areas" - such as land adjoining coastal areas, lakes and islands. and rural land .. must go through the Commission. so it is a unique and valuable source of information on the nature of foreign investment in Aotearoa.

In February 1985. CAFCA wrote to the Ole asking for it to inform us on a monthly basis of all applications received by it, and their outcomes. Lengthy debates followed over botn what information should be released. and the price to be charged for it ($400 10 $450 per month was the OICs first offer). The debate included the intervention of several Ombudsmen, a case in the High Court. and threatened legislation to prevent release of the information. Finally. we started receiving monthly information (averaging about $40 per month) in December 1989.

The information is in the form of copies of "decision sheets": the summary of each application which is presented to the Commission by its secretariat for its rubber stamp. Information is regularly deleted from these sheets before release to us; sometimes whole sheets are blank. We routinely ask the OIC to review these deletions, and take subsequent refusals to the Ombudsman. What appears in these sheets is largely determined by the applicants themselves: applicants to the OIC are asked to provide "a brief summary of information which the Commission could make publically available" consisting of "details of the ownership structure and country of origin. details of the consideration payable, and a brief summary (!f the rationale for the proposal and the perceived benefits in terms of the general investment criteria." II is clear that the Commission rarely investigates further what the companies present it with.

What follows is our analysis of the Ole's decisions for the months stated. This includes information from both the Commission's "decision sheets" themselves. and from our files. Following the analysis is an index to the original decision sheets. to allow readers (and us) to refer back to decisions that may be of interest. The month and page numbers are those of the decision sheets released to us by the Ole

AF! index to 1992 Ole decisions is now available from Christchurch, for $5.

One further from July 1992 was released by

the 011 to them. Five others were still

withheld and are being appealed to the Ombudsman.

~o-'.-.] U'~'Cl"U in full. It concerns Air New which was given approval to pay its dividends as shares rather than in at the shareholder's Approval the Commission was necessary because shares can be held by overseas interests - up to of the share capital. The benefit to shareholders of this type of scheme is to avoid

P.O. Box 2258,

tax. That the Commission should approve this shows clearly that for it, anything goes. Benefit to Aotearoa is 110t a criterion. We wonder why the decision was suppressed ill the place: it would have been common knowledge to all shareholders.

August decisions

There are some big issues in this month's decisions. Not that they are given recognition by the Ole.

The National Australia Ltd of Australia (NAB) is taking over the biggest locally owned banked in

previously less than overseas owned accord-

ing to the OlC. It was last remaining major trading

bank that was locally owned, with substantial government shareholding, and a widespread retail operation. It leaves the Trustbanks as the onl y major operation still in local control.

The BNZ was set up by local businessmen in 1861 because of concerns that overseas owned banks were screwing local businesses. It was nationalised by the 1930's Labour Government, and remained so until the 1980' s Labour Government started the process of selling it off By then, it had become the market leader (as its founders would have hoped), regularly leading movements in interest rates. The Lange/Douglas Labour government put Brierley at its head, then feigned surprise when it followed other banks (and companies) into dubious quick- buck deals. As current Managing Director, Lindsay Pyne, put it in trying to shut up Winston Peters: "Put simply, the Bank didn't have the management capabilities or the control systems to cope with a deregulated financial market Lending grew rapidly and the bank was badly overexposed when asset values plunged following the 1987 sharemarket crash ... In the overheated environment of the 'decade of greed' , many stupid decisions were made - not just at the Bank of New Zealand, but at hundreds of other institutions. in dozens of countries around the world." (Press, 14/ 10/(2).

It is astonishing that Brierley and other directors of the bank during this period have had their reputations barely tarnished by the stupidity (to usc Pync's word) of the decision making of that time. 111C effect was to wreck the highly successful. publicly owned central pillar of our commercial banking system. In terms of government policy, no better way could be dreamed of to persuade unwilling citizens that "their" bank should be privatised - and with privatisation almost inevitably sold overseas. As current Prime Minister Jim Bolger said, in 1988. when the Lange government first attempted to sell the BNZ, a sale to Australia "would be the act of a Judas" Doug Kidd agreed saying New Zealand would become" a branch econom y" (quoted by Simon Collins in the "New Zealand Herald", 2217/(2).

All the mc has to say in justification of the takeover is:

"National Australia is an international banking group and one of Australia's largest banking organisations. The Commission is advised that with NAB effectively being its sole shareholder, the stability and reputation

ofthcBNZwiIJ

and management skills and services available to customers."

The beginnings of the privatisation and overseas ownership of our authorities seen in the approval given to WEL Energy Ltd, a subsidiary

the Waikato Electricity Authority to issue $]

ordinary shares at a premium of $77,749 to the company Utillcorp United Inc or subsidiaries" events in this industry were covered in "Watchdog" some directors of electricity authorities are rushing to privatise and sell overseas; many others are being held in check or staunchly defending the public nWn"l~rl1 of authorities. The Minister responsible, John Luxton, has become so defensive on the issue that he has taken to denying that privatisation was ever the government's preference at all. It is therefore interesting that the gives as the "benefit" of this particular takeover as being that "the Government has stated that as part of i1S economic reforms the energy sector must become more efficient and the introduction of open competition at the electricity distribution level is one way of achieving this. The Energy Companies Act 1992 and the Energy Sector Reform Bill (No.2) will pave the way for this to occur. The Commision is advised that Utilicorp has substantial experience and expertise in all levels of the electricity industry through its activities in the United Stales and investments in Canada, Great Britain and elsewhere. It is claimed that Utilicorp will help WEL Energy Group Ltd to achieve the Government's stated objectives of becoming more competitive and cient."

A competitor to sugar from the Chelsea Sugar Refinery monopoly appears to be setting itself up here. It

consists of a joint venture between Sugar

operative Ltd of Australia and and F, New

Zealand Ltd, a subsidiary of the company KD.

and F. Man Ltd. "Both overseas involved

in the Joint Venture have extensive and

exepertise in the refining, trading and distribution sugar. In Australia the Joint Venture will involved in refining raw sugar cane ready for distribution. The New Zealand operations will involve the of storage and handling facilities which will imported refined sugar and sale of that sugar in New Zealand. New technology will introduced with the resulting benefits to consumers. New jobs created." What the Commission does not sayis that will inevitably also cost jobs from the Chelsea

Not that we have much sympathy for the

have long held a monopoly on

of here and have pre-

sugar ~ sugar for its mining

of USA has consent to

issue percent of its share capital to the Anderson Family Ltd partnership and to prospect and mine sulphur ore in the Lake Rotokawa (Taupo) area on rural land. It is purchasing mining permits from Oceania Minerals Ltd (in receivership) over land of 353.0766 hectares. 'The company plans to process the sulphur locally using "a special formula developed by Drs Anderson (USA) and Johnston (NZ) which makes this proposal economically viable."

A retrospective consent for Splcers Paper (NZ) Ltd, subsidiary of Splcers Paper Ltd, Australia, to take over both Edwards Dunlop N .Z. Ltd and "certain assets and undertakings" of Collins Olympic Ltd for $17.214,229 is unremarkable in that it is only an internal company restructuring: Collins Olympic is already owned by Spicers. What is interesting is that the OIC notes that the takeover of Collins Olympic was approved in June 1992. CAFCA received "no such decision: it must have been one that was withheld, and is still under review by the Om budsman.

Oplo Forestry Fund, which is 20 percent owned by AMP, 1 percent by overseas individuals, and 79 percent by New Zealand residents, has consent to acquire the South Otago Kaitangata, Nobleburn, Taiert Mouth, and Lawrence Forests, including land 0(976.6 hectares from Tasman Forestry Ltd for $4~275,OOO. almost apologises for having to consider this application: it had to only because AMP

Perpetual Trustee Company Ltd is acting

Opio. AMP is overseas owned even though Opio itself is below the OIC's cutoff'of Zf percent overseas owned.

In March and August 1991, two companies 50 percent owned by a Singaporean were given permission to acquire various pieces of land near Queenstown to develop an 18 hole golf course. The companies, Woodlot Farm Ltd and Jlms Way Properties Ltd, now are said to have 48.6487 hectares of land (last report it was 49.18 hectares, the time before, 87.915 hectares) which they now want to use for a 9 hole "golf leisure park and village", Further capital is required, and this is being obtained by Loka Manya Prawlro and two individuals of Indonesia taking a 17 percent shareholding each (total 34 percent) in Woodlot Farm Ltd. "It is planned to build 160 villas within the park which will sold locally overseas. Part-time and

jobs will be created and it is exoecteo

development will tourist " The amount

by the Indonesians has (Sec November for further developments.)

In rural property, an Australian property developer, Howick Parklands Ltd, is buying a 53.1640 hectare "nm down farming operation" in Broomfleld Road, Whitford, North Auckland for $3,500,000 in order to subdivide it Howick intends to upgrade mooring facilities at the local yacht club and offer one mooring to each section owner. A U.S. couple is buying a :33.8747 hectare farm in Clark Road, Waitati, Otago owned by Blueskin Bay View Ltd. They "intend to reside on the property for six months of each year ... The property will be further developed and a local farm manager employed." Another U.S. couple is buying a 145.9739 hectare property on the corner of Kereru and Aorangl Roads, Hastings for $700,000 to develop a winery. They intend to live here permanently (in a house to be built on the property) and start operations with the help of a U.S. advisor and his brother. They use an amazingly complex structure of companies to do this: John Kemble Winery Ltd, Golden Bear Holdings Ltd, Flncen Holdings Ltd9 and S.C. Farm Number 1 Ltd. An Australian resident, Paul John Britton through Rawson Industries Ltd has acquired a second, adjoining, 15.8 hectare block of land at Dalefield, near Queenstown for approximately $165,000. In April he acquired 15.6 hectares for "a lifestyle residential block", In June a 48.6736 hectare block in the same area was sold to a U.S. citizen for a "lifestyle block".

Correction: In "Watchdog" 70, in our analysis of April 1992 OlC decisions, we mistakenly stated that lnchcape PIc, of the U.K. was a Brierley (IEP) company. In fact it is the company to which Brierley Investments Ltd (BIL) sold its British-based car distribution group, Tozer Kemsley and Millbourn, in December last year.

September decisions

An Australian company, AGLNZ Management Ltd, a subsidiary of The Australian Gas Light Company is buying 40 percent of Natural Gas Corporation Holdings Ltd from Fletcher Challenge Ltd for "up to $183,120.000". The "benefit", says the Commission, is that "AGL is one of Australia's leading gas companics and is involved in the full spectrum of activities in the natural gas industry including exploration, production, operation of pipelines and the distribution and marketing of gas. The Commission is advised that AGL's involvement with the Natural Gas Corporation will enable the flow into New Zealand of

28

AGL's significant experience in the gas industry and access to AGL's technology and knowhow. It is claimed thai the Natural Gas 'Group' will also have access to significant research and development programme and their experience and expertise in the area of environmental protection and rehabilitation. 'The Commission is advised ... it is claimed that... So much for any oversight by the Commission.

The Natural Gas Corporation was part of Fletcher's subsidiary Petrocorp, both formerly state-owned and sold to Fletchers by the Labour government. The Natural Gas Corporation owns or operates virtually the entire natural gas pipeline carrying gas from Maui and other gasfields to users. Fletchers also has a substantial ownership of Maui gas and other parts of Aotearoa' soil and gas industry through other subsidiaries. It is selling off assets like Natural Gas Corporation to reduce its debt levels in the face of falling profits in its Canadian operations and, recently, plummeting share prices driven by overseas investors. Aotearoa' s oil industry has in recent years been almost completely overseas owned (the main exception being some retail outlets), but our gas industry had been State owned. Gas is now being alienated too.

Independent printer, Bascands Ltd. is being taken over for "in excess of $10 million" by News Corporation subsidiary Dancette Holdings Ltd. Dancette is owned by Pacific Magazines and Printing Ltd, which is a joint venture between News Corporation (45 percent) and Independent Newspapers Ltd (INL). "In July 1992 Dancette Holdings Ltd received consent to carry on business as a printer and distributor. The acquisition of Bascands Ltd's assets is a first step in establishing the New Zealand operation." A somewhat different scenario from what was promised in July: "It is envisaged that full scale operations will commence in early 1993 with the expected employment of approximately 35 people." A takeover is obviousl y easier than the bother of starting up on your own. What was proposed was a joint venture commercial printing operation between INL and Pacific which would have combined the operations of Bascands with Adams Print, another former independent Christchurch printer taken over by INL. In December it was announced that this joint venture was off: the two parents couldn't agree on a value, and Bascands and Adams would compete for work ("Press" • 9/12/92). News Corporation, the heart of Rupert Murdoch's empire, controls INL, the owner of the Christchurch Press, the Dominion and the Evening Post in Wellington, numerous magazines, including the country' s largest selling publication, TV Guide, and suburban rags, as well as magazine distributors Gordon

and Gotch. News Corporation Research Services, was noted recently with a view to buying TVl, Any intention to sell "at this stage" was denied by the government 20/10/92).

Another publishing empire also features, Reed International Pic (U.K.) is merging its worldwide operations with Elsevier N. V. As a result, Butterworths of New Zealand Ltd (previously owned by Reed International) is now going to be 50 percent Elsevier owned through Reed Overseas S, V. Elsevier and Butterworths are big publishers of academic, professional and textbook titles. Butterworths is the principal publish of legal texts and authorities in Aotearoa, "The Commission is advised that the new group will be one of the world's largest publishing and information entities. Butterworths will benefit through cost savings created by the merger and access to a wider variety of published products." Students would not be advised to wait for their textbook prices to drop.

Nelson Pine Industries Ltd, the owner of approximately 3,050 hectares of'forest is now going to be 100 percent Japanese owned. Formerly owned 50/50 by Surnlrin N.Z. Ltd (Japan) and Corporate Investments Ltd (CIL), CIL wants to get out as part of an asset sales program, and Sumirin is buying CIL 's share. Sumirin "have indicated that they will seek another New Zealand partner for its Nelson operations", but "the Commission is advised that access to export markets could be enhanced through Sumirin's total involvement in the venture."

Two large Japanese companies, Oji Paper Co. Ltd and C. Itoh and Co. Ltd have set lip a joint venture, Southland Plantation Forest Company of New Zealand Ltd with approval to "establish a forestry operation involving the use of rural land". At time of approval, the company "had not identified any specific areaof land". $1.2million worth of shares were issued, $612,000 worth to oj, $588,000 to C. Itoh.

In another forestry development, Ernslaw One Ltd has consent to buy one hectare of rural land on State Highway 25, approximately Skm south ofWhitianga for $66,000. The land is being bought to establish a road access to Whangapoua Forest on Ceromandel Peninsula. Ernslaw was given consent to acquire the Crown Forest Licences and assets of the forest (among others) in August 1990, Then. Ernslaw was 80% owned by Callander Ltd (Hong Kong), 10% owned by Habacus PTE Ltd (Singapore) and 10% owned by Shiang Yong International Ltd (Hong Kong). Since then, ownership has apparently changed hands to

Watchdog

Page 29

"the

of Malaysia".

development at the 12 hectare fine wool farm (40

""r'p:lJr,"" were the remainder freehold) for

New Zealand International Ltd is 50

percent owned by the Hirai family of Japan, 49.9 percent by a Japanese resident in Aotearoa, 0.1 percent by a New Zealander, R. B. Sandford. "The total estimated expenditure on the project will be approximately $96 million over a ten year period." The developments win include a "destination golf course resort and other recreational facilities including tourist accommodation." According to the "Press" (10/11/ 92), quoting company spokesman Roger Sandford, "the development would be for the use of the local community, visitors and tourists ... Its main attraction would be an 18 hole golf course of international standard, suitable for professional tournaments ... The course would be developed as New Zealand's only lagoonsstyle course, thanks to the good water supply in the area ... The proximity of the site to Christchurch Airport was ideal for helping to attract tourists ... To expand the resort theme, a riding school, stables and equestrian facilities, a working farm, jet boating trips, tennis and squash courts, swimming pools. horse trekking, cycling and walking paths, a spa and gymnasium could be included."

An Indonesian is involved in another tourist scheme that involves the purchase of the high country sheep station, Lilybank Station, Lake Tekapo. Through the company New Zealand Trophy Guide Service Ltd, the station of 27,526 hectares (all but 8 hectares leasehold) is being purchased for $2,200,000. H has already been developed to provide "high quality safari operations, mainly to overseas hunters." 'The new owner, Mr Hutomo Mandala Putra, "who has a keen interest in hunting activities proposes to spend appro xi - rnately $1 million upgrading the property with the aim of attracting further overseas hunters and tourists to the property. Local managers win be appointed to the property both for the stock and for the safari operations. Some of the land "is due to be surrendered to the Department of Conservation in terms of a Land Improvement Agreement".

A South Kaipara deer farm, Ototoa Station, is being sold by an Aotearoa company, Porter Holdings Ltd to a Korean residing in Australia. The farm, which is in two blocks, (me of 23 7 .05 hectares (for $1,550,1(0), the other of 30.954 hectares (for $616,330), is owned through the companies Ototoa Station Ltd and Bridge City Estates Ltd respectively. farm will be

... ~ .. ~,,~.~ by a joint venture,

ship, 61.7 owned by the

voting Porter

interest through Lake

"win his extensive Korean connections

vide access to the Korean market added value New Zealand dried velvet. Perhaps we shouldn't be too sure that the deal will actually go through: in 1990, the Ole gave two approvals for Porter Holdings to sell this farm to two different Japanese companies - to Ryukyu Meat Co. Ltd for $2,754,000 in September, and to Heimat Company Ltd in October. Both were customers of Aotcaroa deer products who wanted to vertically integrate to guarantee supply and price. Presumably both proposals fen through.

In other rural land, a Danish octogenarian who has owned a 747 hectare farm in Parekura Bay, Bay of Islands since 1968, is transferring ownership of it to Pacific Shops Inc, a U.S. company controlled by him, "to enable his estate to be more easily managed." Two U.K. citizens are proposing to settle in Aotearoa pennanently and develop a winemaking operation on an 8 hectare rural property in Conders Bend Road, Marlborough which they have bought for $97,500 through a company they own, Joslin Mariners Ltd. Negoclants New Zealand. Ltd, owned by S. Smith and. Son Pty Ltd, Australia are acquiring a 1.2142 ha, vineyard on the corner of State Highway 6 and Blicks Road, Renwick, Marlborough for $118,000. Negociants are wine importers and exporters and procure grapes from two Marlborough vineyards, of which this is the smaller. The other, formerly owned by an American, will be purchased by the owners of this property, who will continue to manage both. A U.S, couple are purchasing a UU934 hectare ~'lifesty!e block" of rural land in Valley View Road, Otalka, Whangarei, through holding company Bedlington Holdings Ltd, for $181.875, on which they intend to reside when they emigrate. A couple from Thailand, through holding company Resource Links Ltd, are buying a 4.1522 hectare property in Lower Shotover Road. Queenstown for $115,000 on which they will build a house and develop as a raspberry farm.

Fosters Brewing Group of Australia is divesting itself of Elders Rural Finance N.Z. Ltd and Elders Pastoral Ltd. Fresha Holdings Ltd, Aotearoa-owned, is acquiring Elders Rural Finance.

A company prospecting for oil with a share of a licence for potentiall y one of the biggest oil or gas fields around Aotearoa has been given retrospective consent to carry on business. JFP Energy Inc of Houston, Texas and its subsidiary (which does have consent) have "been

to two eclipse the Toka structure offshore in a licence owned mainly byoverseascompanics.Oneofthem, JFP Energy, is seeking consent to drill a well to a depth of 3900 metres about lkm the New Plymouth breakwater. JFP's president, Mr Marvin Smith, said yesterday from Houston that the company was awaiting a response from the Ministry of Environment. IFP's target is the Kapuni sandstone, from which gas and condensate is produced at Maui., Assuming the sands all trapped oil, there could be reserves of 2b barrels of oil or its equivalent in gas, Mr Smith If the consent process was successfully negotiated and a rig could be brought back to New Zealand, an offshore wen might be drilled at Toka in eight to nine months, Mr Smith said. IF? will look to increase its 22.25 percent stake in the licence by doing the drilling. The other partners with a similar stake are two Canadian companies, TCPL Resources and Noreen International. Australia's Ampolex has a 20 percent interest." Of course, this could all be oilmen's hype too ...

In an internal restructuring within the ANZ group in which there is no change in beneficial ownership, Post Office Bank Ltd is transferred to a Aotearoa subsidiary of ANZ. What is interesting is the value put on Postbank by ANZ: $350 million, compared to the $678 million it was privatised for in October 1989.

October decisions

The big Australian cinema chain, Hoyts, is merging its Aotearoa multiplex cinema operations with an Auckland company, Endeavour Ltd, This neutralises the competition that Endeavour had been increasingly offering Hoyts, Hoyts own the Amalgamated cinema chain; main competition until now has been the Pacer Kerridge (formerly Kerridge Odeon) cham, but this is now in trouble, having been placed in receivership due to the excesses of its owners. The two chains control percent of the cinema market ("Press", 31/12/92) and Hoyts was turned down on competition grounds by the Commerce Commission when it tried to buy the Kerridge chain. Multiplex cinemas (multiple cinemas in one complex) were threatening to destabilise this cosy market sharing arrangement In Christchurch for example, several proposals were floated during 1992 for multiplex

eluding the Two.

no moeoenoer deavour Enterprises is .,,,, .... 11'" "Foot rot John Barnett, and owns a number of multiplexes throughout New Zealand ,7/1/ 93). Alongside its aggressive market behaviour, Hoyts recently cut its workers' wages in Auckland.

The mechanics of the merger are an unincorporated SO/ 50 joint venture between Hoyts Corporation

Ings Ltd (Australia), via its subsidiary Aeneid Four Ltd, and Endeavour Multiplex Ltd. The joint venture will acquire the "cinema exhibition and related business assets presently owned by Hoyts Corporatlen Holdings Operations (NZ) Ltd together with the rights held by Multiplex Properties Ltd (an associate of Endeavour Multiplex) for the development and/or lease of the two multiplexes in the North and South Islands respectively for a consideration of approximately $12.9 million."

Natural Gas Corporation New Zealand Ltd, recently partly sold off by Fletcher Challenge Ltd, has approval to take a 25.1 percent shareholding in Wanganui Gas Ltd for $1,443,250. Natural Gas Corporation is 33.3 percent owned by Australian Gas Light Company, 33.3 percent by Fletchers, and the remainder by various individuals and institutions.

Two Japanese companies, Innosho Woods Ltd, and National House Industrial Co. Ltd are setting up a local company, Panahome Innoshe N Z Ltd to "establish a timber processing mill in New Zealand," 'The Commission states the benefit of the approval to be:

"The Japanese shareholders are established building and wood processing companies that wish to establish a timber processing mill in New Zealand to

value added wood products to Japan. Panahome's operations will be established near Rotorua and it will commence lumber processing in a newly developed plant The Commission is advised that new technical and managerial expertise will be introduced into the local industry while also opening up the Japanese market for radiata pine in their construction industry. It is also expected that this will create 30AO new jobs." It is also likely that this ends up as another vertically integrated industry, with Japanese control from forest to Tokyo shop floor.

In a decision released only on appeal to the Commission, a U.S. company, Fibreform Internatlonal Corporation, Inc. has approval to enter into a 30nO joint

to North America, "The Fibreform Group

is involved in and forest

will a long

and and its associated

company will pro-

vide moulding, manufacturing, technical market-

ing Commission is advised that this proposal 'will create an operation which the applicants

will have the largest radiata moulding

capacity in the world. The win also allow

Foresty Corporation to sell its forest resources to be "value added' prior to export We su ppl y the logs, they supply the expertise. Is that expertise really not available to Aotearoa by other means - or is this simply a way of saying that thi s is another vertic all y integrated setup, where the final product is controlled by one company from manufacture through to final sale?

A Canadian couple, DIl" and Mrs Porter, through their company, Cassidy Woods Ltd, are buyingthe 170.9439 hectare Puna Mara Forest at Bay View, Napier, for $1,450,000 for a "showcase model", "Dr and Mrs Porter have 20 years with sophisticated log scanning and optimization [sic] systems which they will introduce to New Zealand. The system identifies the optimum way to logs and Commission is advised that this will result in a 9% - 12% increased utilisation timber felled, The Porters propose to establish the system as a showcase model which will be

for inspection by forest owners. The Porters

also state they will afford assistance to these owners to establish their own system."

A tax dodge is carried out via

Zealand Island company which

is owned by a New Zealand registered charitable trust". Its "single purpose" is to "lend money to Forests Ltd (a New Zealand incorporated company) and to finance such lending by issuing Floating Rate Notes to various Japanese investors, TIle loan to Pine Forests Ltd is to the extent of US$61 million."

TIle "benefit" is that: "The acquisition will further facilitate Cyprus's joint venture mining

at Cross resultant benefit"

In

a '''J'U'''J";

is buying

at from the lodge companies for

and through Vintage Holdin.gs he is buying 17.314 hectares in Otatara.Invercargitl for $60,000, currently used "as an airfield for access to the lodge and as a base for a proposed engineering and aeronautical operation." The joint venture companies are Flordland Wilderness Lodge Ltd (50 percent owned by Wuu) and Kisbee Holdings Ltd (40 percent).

A Japanese couple are buying a 29.28 hectare block of land in Malaghan' s Road, Arrowtown, Queenstown for $320,625, through a company, Vivid Holdings Ltd. They "already hold a significant shareholding in Equestrian Enterprises Ltd, a horse trekking business operating opposite the land owned by Vivid, It is proposed to develop the 29,28 hectare block into a fully operational landscaped equestrian centre with future plans also incorporating an indoor arena."

A German couple planning to seek penn anent residency, through their company Frisch Karavest Ltd are buying a 58.6 hectare dairy farm in Orepunga Road, Cambridge for approximately $775,000. They "plan to breed' Gelbvieh Cattle' which they claim is most suitable to the New Zealand climate, It is claimed that the breed is superior to all other introduced breeds in that it provides better growth gains, breeding patterns, milk production and quality and is more disease resistance." [sic]

Telecom Cellular subsidiary of Telecom Corporation of New Zealand Ltd (U.S.A.) is acquiring another small block land to set up its yuppy phone coverage, This one is "a telecommunications cable, and right of way easements off Green Island Bush Road, Dunedin,"

In company internal restructuring, Bowaters, the big UK group, is rearranging its ownership of its Aotearoa subsidiaries, Bowater Overseas Holdlngs

Industries Packaging (New

Zealand Ltd, and Busi-

Maod Corporation It is significant both because of me increased overseas control of retailing that it and also of the comprador direction it indicates in Maori "~IH""'H"'"

These parties have formed company, Sombar Enterprises will own Deka New Zealand Ltd (the former Aotearoa), FTC

it will own the Ltd chai n of 53 department stores in are expected to exceed $NZl billion, with assets of $200 million and net earnings of$30milHon in the first year C'Press" .ibidi. The deal has wider ramifications than this: part owners of Vox, and of Action Holdings are already big owners of Aotearoa Action Holdings was at the time 46 percent owned by Foodl ands Associated Ltd (F AL)

which recently the Countdown chain from

Magnum Vox is 25 percent owned by

FAL, partly Action Holdings' shares in Vox

("Press", Since then C'Press" ,29/1/93), FAL

has offered other shareholders in Action a share-swap that would give it complete ownership of Action. Deka and FTC account for "less than 10 percent of the total New C'Press" ,4/9/92), and F AL "now has about 16 percent ofthe New Zealand retail sector. the Countdown supermarkets, and about 14 percent of the general merchandise

( 5/9/92).

The chains in Aotcaroa were all in trouble one way or another. FTC was of the collapsed Chase empire, which was more interested the property represented in the stores in developing it as a retailer; it had been under the control of" 13 overseas banks" ("Press", 4/9/92) until its sale to Toy Warehouse have had profitability problems. Deka and James Smiths were previously owned by Lion Nathan which was trying to

raise funds by non-core interests.

MDe initially Deka and James Developments ecutives

into the act in 1992, by buying

in a joint venture (Skar] former Deka expercent), and five

North Island Maori trusts

they aimed to the

Maori employment"

to have lillie influence with the new

the best the can claim is that "some job ",...",.r..+.

ties could . MDC's other investments include

Bix Business Machines battery developer

Powerbeat International (20 percent), processing

King Country Lam b (20 percent), ki wifruit concentrate producer Green Juice Company ( 17 percent), and Moana Pacific Fisheries (4 percent).

The current. deal is structured by Vox and Action forming an equall y owned joint company, V .A. Holdings Ltd. V.A Holdings Ltd and MDe interests will each have half the shares in Sombar Enterprises Ltd. Sombar will acquire Skari Developments (the owner of Deka, Toy Warehouse, and James Smiths) and Holdings. Venture Stores (1992) Pty Ltd, the company owning the Venture Stores chain in Australia, will sold to FfC, via an Aotearoa holding company, Aeneid Thirty Two Ltd, owned by Vox and Action Holdings. All prices paid for the deals have been deleted by the OlC.

The best the OlC can say as to "benefits" of the deal is:

"The shareholders in VA Holdings (Action Holdings Ltd and Vox Ltd) are seeking to establish a transTasman retailing operation. The businesses of

James Smiths and Farmers are broadly complimentary [sic] to Vox and Action's Australian operations and therefore provide a useful platform for their expansion into New Zealand. The Commission is advised the combined buying power of the proposed organisation will result in benefits to New Zealand consumers in the form of lower priced goods and with greater competition. Some job opportunities could also result In addition the New Zealand operations will receive benefit of the expertise Action and Vox." Interestingly, Toy Warehouse is nowhere mentioned in the Ole decisions.

Another big story is the buy-out of Magnum tlon's shares in Wilson Neill Ltd by an apparently high-flying US entrepreneur, Phillip Adkins, through his Guernsey (tax haven) registered Cadenza International. He has bought Magnum's holding for $6,704,220 - four cents a share. Wilson Neill shares were selling for 11.5 cents in mid December, when Adkins bought further shares to bring his holding to50.5pereerHC'Press", 18/12/92). Wilson Neill had

got into deep trou ble being unable to of

most valuable asset, Tasmanian brewer, Cascade. It reported a loss for the year to June 1992 of $33.95

on and the Australian

Pubco Holdings it owns. He would sen all "noncore investments, including real estate in New Zealand and the United ( Itturns out

''-'''A~'''' 'L«""'V"',""v' it w as revealed in

in addition to $10 million worth of other assets, Adkins had sold Wilson Neill's Cascade Premium brand and the Tasmanian brewery that makes it to a joint venture, Cascade Brewery Company

run by Cascade '8 competitor in Tasmania,

Carlton and United for about $35 million.

would then be used

as security to refinance Wilson Neill's debt" ("Press", 18/19/20/93). Adkins, a Californian, formerly worked

for National and working from

1 1 to in Cadenzahas offices in l ondon,

Tokyo, and Los and has "closed $lJS2 billion

in transactions since it was formed" in 1988, according to Adkins s 12/12/92). So if he is such a high flyer, what is he doing with a DC3 like Wilson Neill?

talc of intrigue involves one of our is using a UK Ltd to buy up based company, International Finance Ltd from Bankers Trust International NV. The amount paid is sup-

What would Electricorp want a finance

in a tax haven?

are owned

sidiaries of Air New Part of the price in each

case will be by giving Air New 25

of the purchasing each will then become

owned by the four New Zealand

20 percent owned Australian Air-

two sales (clearly and Fantasia's

allow travel service and enhance their office

will provide in both countries access to a

wider range of products. For instance New

coach and services which have previously

not been readily available to travel in Australia, will available. Equally, similar Australian products will be more widely distributed to travel agents in New Zealand. This development will benefit the vendors of non-air products and win permit travel agents to enhance the service they provide to their customers."

What is notexplained is, Lions and MAARS had to

why Travel Communicasold by Air New Zealand

in order for Aotcaroa travel agents to get these benefits; and secondly, why, if they are Aotearoa based firms, their sale will change anything at all for the better in this country. A plausible explanation of the deal is that Qantas is using it'; substantial control of Air New Zealand to get access to Air New Zealand' s advantages in booking facilities leading to the further rundown of Air New Zealand into a regional airline fitting in where it') shareholders Qantas and Japan Airlines let it The deal is also being cri ticised as forming a cartel that can control bookings for those airlines.

Barclays Bank (U.K.) subsidiary BZW New Zealand Ltd. (Barclays de Zocte Wedd) has been given blanket consent by the OIC "to acquire shares ... in New Zealand listed companies". Nothing could illustrate more clearly the vacuousness the scrutiny given by the OIC to overseas investment in this country. Even its expressed "benefits" come down to no more that it will make overseas purchase of Aotearoa company shares more attracti ve: HB ZW 's principle is the buying and on-selling of stock exchange tics. BZW is seeking to undertake major bought deals (being deals whereby the pricing risk is by the broker). The Commission is advised that the proposal will create a greater liquidity for the holders of securities ofN ew Zeal and com panics. which will enhance the attractiveness of investment in New Zealand companies. This in turn win support an increase in the availability of equity capital."

An Australian company, Ormsray Pty

Ltd is selling 50 percent share car component

manufacturer, Kenson Industries Ltd to the other 50 percent owner, Kawashima Group (NZ) a subsidiary of Kawashima Textile Manufacturers of

government moves in car

A<; part of the divestment by the Australian Fosters Brewing Group of Elders Pastoral Ltd, Fosters is selling its share in the following companies to a holding company, Dulay Ltd which will then be sold to Fresha company"; Elders Pastoral Ltd, Rotorua Saleyards Ltd (33.33 percent), Associated Auctioneers (Fordell) Ltd (66 percent), Ngongotaha Saleyard Ltd (33 percent), and Farmers Federation NZ Ltd (30 percent). The consideration in each case has been deleted by the Commission.

BMW New Zealand Ltd, a subsidiary of the German car and is extending its opfinance to BMW dealers

An

Plesse Properties Ltd has in Aotearoa as a "purchaser and re-

to the Sing aFarm Ltd and facilities near Queenstown in conjunction with Properties Ltd. Ap-

proval is this month for the acquisition of a

further of rural land near

Queenstown Properties Ltd for

$240,000,

Weadmmm is buyLtd, The purland in Bald Pukeware. He "will provide additional working capital to the company which the current owners cannot finance", and "provide marketing expertise and contacts in company to

A Swiss national, Mr ing 50 n<>,'£'C>loog

a New

is two

hectares and 199A602

for a winery,

the August 1992 decision which an

complex structure of companies" for the purpose: a new consent from the OIC was required because they changed the structure of the shareholding (I). A Queenstown property on Speargrass Flat of five allotments in a subdivision, is being for $170,000 to M8 D.J. Holden of the U,S,A who "Yin settle there with her fiancee and "make the land productive in some capacity", The Black Family of Australia is reorganising its ownership of a 5.7051 hectare rural property on the Main South Road, Yaldhurst, Christchurch via a family owned company, Bowker Holdings 13 Ltd. The family, 49.5 percent owner of Craigpine Timber Ltd, acquired the land in March 1992, which has a sawmill leased from Addington Joinery Ltd (in receivership) on it. l11CY intended to continue the sawmill operations.

December decisions

The most significant Commission in December was allowing a syndicate of overseas to banks to take out a $150 million mortgage over Sealord Products Ltd's assets, Including fishing quota. The banks involved- the Hongkong Shanghai. Banking ration Ltd, ANZ Banking Group (New ...,o;,,,.a,,,,,,) Ltd and the Bank of New Zealand Ltd - are lending the money to the Maori Fisheries Commission (MF'C)/ Brierleys Investments Ltd (BIL) joint venture set

by the government to buy Sealord to satisfy claims under the Treaty of Waitangi for rights to the It is not clear if the money is being used to finance Bricrleys' Palt of the deal, or as bridging finance for the MFC's promised government funds.

Either way, the deal negates on fishing quota, which says that overseas not have more than 25 percent interest in any fishing quota, If the deal is legal, it indicates a unpublicised special exemption for the mortgage by the Director-General of Agriculture and Christchurch journalist Chris Hutching, confirmed a MAF spokesperson, Alan Bauckham, told him an exemption was granted in January (after the approved the mortgage) to allow the quota. The OlC approved the mortgage

Its consent has

Such a default is a

Possible

could include failure of the joint venture due to

loss of profitability if the government quota ownership law, or bad management, or out between MFC and BIL due to di Hering objectives, resulting in the banks losing confidence in company. In any such event, three foreign owned banks would own a substantial proportion of Aotearoa's fishing resource. MAF's answer to this is that the foreign funder would be restricted by legislation from operating the quota and would be required to sen it on the New Zealand market (Hutching quoting Bauckham), But attempting to dispose of such a large part of our fishing resource (about 20 percent) in a short period would drive down prices: the banks are likely to want to hold onto the quota for some time, or sell it overseas.

Group eal r

Ily IIOWAfW KEENE

Twenty-five per cent of New Zealand fi~hing quotas could end up in the hands of toreian banks if the Brter levs-Maor i Fisheries COl1)mission' joint venture company fails. says the Campaign Against Foreign Control of Actearoa.

The secretary of CAFCA, Mr Murray Horton, said it was a "completely unpublicised" aspect of the Sealord deal.

Overseas Investment Commission decision sheets requested by CAFCA under the Off icial Informalion Act show consent has been gwnled for the syndicate of banks to use fishing quotas as security on their loan.

The syndicate, headed by the Ilongkong and Shanghai !~anking COrpOf;]OO[1 LId and includmg the ANZ and BNZ, is lending the joint venturi' $150m to buy Sealord.

Mr Horton said the official position of bnth the GoVernment and the fishing industry was that the industry had become "New Zealandised" _. owned and operaied by New Zenlnnders.

"Clandestine mortgage deals like I his make a mockery of 'New Zculandisauon', and have major economic and political implications lor lile whole question of New Zl'aland sovereignty over New Zealand natural resources.

e

b

The technical into:

arc that the three

enter

a

ments Ltd 1'(;

MFC subsidiary), Tc Ika Paewai Ltd (a

venture), Scalords, and Charging Subsidiaries";

and

Te Ilea Paewai and Te Waka Unua

(ii) a mortgage of fishing Ltd and Basuto Investments Ltd.

To enforce these, the banks (individually or collectively) may acquire the "business assets undertaking of the Sealord joint venture group, incl uding fishing quota, pursuant to the provisions of the securities referred to in the NZ$150m Acquisition Finance and Working Capital Term Loan Facility dated 17 November 1992." Further, the Hongkong and Shanghai Bank, as agent for the banks, may "carry on business as a commercial fishing company within the exclusive eco-

,

I

"Fishing rights under the Treaty of Wnililllgi an: gone as a result 01 the deal, and the ultimate irony is the resource could end up with a syndicate of foreign hanks," Mr Horton sakl.

The Minister of Justice, Mr

Graham, said all New Zealand banks were foreign-owned. "Bank lending these days means all our assets nrc pledged to overseas

ThNe's nothing new that."

The Mlnister of Fisheries, Mr Kidd said CAFCA's position was "ext~eme and ludicrous", and they were "financial ignoramuses".

"There hasn't been a fishing company go bust in years. In the totally remote circumstance they might default, there are controls."

Approval lor quotas as securit y was given in advance because the company would no! have got Hl!' joan otherwise, Mr Ktdd said.

"The New Zealand fishing Industry is now a one to two-blllton-dullnr export earner. We woul? still b.e supplying the fish and chip tf<lde if it hadn't been for the foreign capital lent."

The secretary of the OVl'lSeflS Investment Commission, Mr Paul Ttndlll said if the joint venture

, the decision on

happened the assets would

come before the commission.

nomic

to the terms of the same

An to note is that Bll..Itselfis regarded

as overseas controlled by the even without the

mortgage, laws would

broken.

The next big is the sale of the by Fletcher Challenge Ltd to the National Bank of New Zealand Ltd. This the Bank a 41 percent share of farm lendi ng - the largest single lender, and more than the 28 all the other banks combined ("Press" ,2/12/92, 15/2/93). National is 100 percent owned by Lloyds Bank of the U.K Flctchcrs. which had the from the Government in October 1989 for $550 million (New Zealand Official 1990 Yearbook, p. 664), sold it 1.0 reduce its indebtedness. It had to pay the Government a further $137.5 million in due to its better than expected performance ("Press", 2/10/(2). It is interesting that the consideration reported by the 0 lefor the sale [0 the National Bank is $450 million. In fact the final price was $460 million, due to a higher dividend payment than originally proposed ("Press", 6/2/93). Either way, only $350 million came from the National Bank: the rest came from the Rural Bank itself as a dividend. Clearly the Rural Bank is ahighly profitable enterprise. All of those profits will now add to the country's worsening balance of payments and increased overseas indebtedness.

Two large companies, OJ>> Paper Company Ltd, and C Itoh and Co Ltd, through a jointly owned company, Southland Plantation Forest Company of New Zealand Ltd are buying 1295.1907 hectares of land at Lillburn Valley, Southland for $533,078. It is in two blocks: one of 318.8500 hectares, the other of 976.3407 hectares. It is buying a further 406.3044 hectares at Otautau, Southland, for $390,000. "Southland Plantation propose to develop the land into a fully productive forestry operation which will provide wood for export 1.0 the Japanese pulp and paper industry. " Nothing there about further processing in Aotearoa, or the jobs that would provide.

C. Itoh is involved (33.33 percent) in another forestry company in Southland called South Wood Export Ltd with Foundation (66.67 percent). It has two blocks (of 158 .. 8 hectares/$91 ,O{)Oand 761 ,0366 hectares/$590,OOO) at Dipton and a further two (l102.4892hectares/$568,OOOand 1 140.7970 hectares/ $820,0(0) in Ltllburn Valley. "The has been acquired for the purpose of establishing a eucalyptus forest in Southland for the purpose supplying

for the The Commission

Oji is one of the Carter Holt ('nn.rn.

with a variety Price Waterhouse interest in the Bluff aluminium

ITT subsidiary, Rayonler Zealand

buying up another block of timber. It already substantial holdings, largely from the purchase of cutting rights from the Crown sell-off, This purchase is relatively minor: 25 hectare of known as the Pukehou Block, The consideration is sup-pressed. "IlT advise that with its involvement in acquiring logs and standing timber in the New Zealand market place, the purchase of this standing timber will enable the company to continue to expand its export market. This acquisition is only for the timber and cutting rights within the Pukehou Block and docs not involve the acquisition of the land on which the forest stands."

Both these forest sales are a continuation of the process that is now leading to bitter complaints by local saw mills: too much potential timber is being sold as logs overseas. Saw mills, and hence oilier further processors of the timber locally, arc increasingly finding themselves unable to obtain enough timber, and when they can it is too expensive. Jobs in processing the being lost in Aotcaroa - effectively exportedoverseas to wherever the new overseas owners of the logs decide it is most profitable to process

The Opio Forestry which is 20 percent

by AMP and 1 percent by ~'other overseas als", has consentto buying the Kaltangata, Nobleburn, Taleri Mouth, and Lawrence Forests, including land of976.6 hectares of land, in South Otago, from Forestry Ltd for $4,097,000. Consent had already been given in August 1992, but the had changed.

In a rural land sale a outside the ordinary, a

Japanese company, Shimizu Ltd, has

approval to buy 6.2378 hectares on Rycroft

Road, Franklin District for intending to

develop a hydroponic operation to grow for

both the local and Japanese The company is

majority owned by Mr Minoru who "intends

to emigrate to New Zealand development of the New Zealand operations aimed at

10 the market

established contacts, The Shimizu

stated that that

can and win

win lease the farm toone ofthe former owners and

to develop by applying

weed eradication programmes and improving pastures to develop a deer park on the

* A hectares of land in Tukituki

near Hawkes Bay is being

to a Finnish. famil y company for $5 l S, 796 for forestry development In February 1992 the same

bought the 553.1982 hectare

Tirhnoana and for-

estry development".

and winery near

owned company Highfield

Ltd which was 40 percent owned by a

MI' Tenuwera the percent owned by a

Mr Shin Yoko! the shareholding is changi ng

to is invol ved in the im port and

distribution of wine and champagne in Japan, Korea, Taiwan and Singapore accordingly is well placed to

provide outlets Asia for the winery."

new fruit varieties for the Japanese

utilising producing in the Japa-

nese off-season. This is directed at exporting using established con-

tacts," benefit goes

overseas.

* A

* An Australian and ill New Zealander have an the 1676.2078 hectare Road, Ruatorla. In m"""""l1 to buy the block: of

land, which Australian's brother-in-

law's property, for $228,938.

* Liou Family, Taiwan, through their

family company, Holdings Ltd are buying

Orere Farms which owns a hectare farm

in Orere Point Road, Orere Point, Papakura for $1 TIle family had previously been given permission to buy two other properties in the Auckland region, one is adjacent 1.0 this farm. They will be run as a single farm under the current manager. "The property is being purchased because of the Liou 's wish to expand their New Zealand investments. They "will examine possible future developments including the establishment of a deer operation, tourist facilities and flower growing."

* Kiripaka New Zealand Ltd, 75 percent owned by members of the Kaplan family of the U.S.A., is increasing its ownership of Investments Ltd to 99 percent. Ruaig owns a 537 hectare property on the eastern sideof Whltfurd/Maraetai Road, Whitford, Auckland. The company has subdivided the land into nine blOCKS. one of which has been sold to the local council. "The remaining blocks are to be developed as tourist complexes/resorts, golf course/s and an equestrian centre with attached polo club (already established)."

"Internal restructuring" telecommunications

company BeilS(IIuth of U.S.A. rear-

ranging its ownership BellSouth New Zealand Ltd

establishing its Australian subsidiary BeHSmdh Australian Communlcatlons Enterprises Ltd, to be renamed, Enterprtses Ltd, in Aotearoa, Bcll'South New Zealand win jointly owned by the Australian subsidiary and another subsidiary, Glamic One (to be renamed BellSouth New Zealand Holdings Ltd) which is owned by BeUSouth Enterprises Inc and BeliSouth International competition from BelfSouth (along with Clear Communications, Mel, and Ben

Canada) was cited Telecom as one of the reasons for

mass layoffs it February,

1992

Index compiled by CAFCA

were made from decisions by from the August 1992 release. two were ,\""."a.,",,-'u.

deletions were made from decisions by the OlC from the September 1992 release. one were released.

Three deletions were made from decisions by the OlC from the October 1992 release. Twenty two were released. Thirteen deletions were made from decisions by the OlC from the N ovcm bcr 1992 release. Twenty six were released, Nine deletions were made from decisions by the OlC from the December 1992 release. Thirty five were released.

Action Holdings Ltd (Australia) Adkins, Phillip (U.S.A)

Aeneid Four Ltd (Australia)

Aeneid Thirty Two Ltd (Australia) AGLNZ Management Ltd (Australia) Air New Zealand

Air New Zealand Ltd

Alta-Laval (NZ) Ltd (Switzerland) Alfa-Laval NV (Switzerland) AMP

AMP Perpetual Trustee Company NZ Ltd

AMP Perpetual Trustee Company NZ Ltd (Australia) Anderson Family Ltd

Ansett (Australia)

ANZ Banking Group (New Zealand) Ltd (Australia) ANZ Banking Group (New Zealand) Ltd (Australia)

Arrowtown, Queenstown, Malaghan's Road, 29.28ha. property (Japan) Associated Auctioneers (Forden) Ltd

Atkinson, D.M. and K.G. (Thailand)

Auckland, Whitford, 537 ha, property on eastern side of Whitford/Maraetai Rd Australia and New Zealand Banking Group Ltd (Australia)

Australian Airlines (Australia)

Australian Consolidated Industries Ltd (Australia) Australian Gas Light Company (Australia) Australian Gas Light Company (Australia)

Bank of New Zealand

Bank of New Zealand Ltd (Australia) Bank of Scotland (U.K.)

Bankers Trust International Capital NV (Netherlands Antilles) Barclays Bank: PLC (U.K.)

Barclays de Zoete Wedd (U.K.)

Bascands Ltd (Australia)

Basuto Investments Ltd

Bay Islands, Parekura Bay, 747 ha. property

Bedlington Holdings Ltd (U.S.A.)

BeltSouth Asia/Pacific Enterprises Inc (U.S.A.)

BelfSouth Australian Communications Enterprises Inc (U.S.A.) BelfSouth Corporation (U.S.A.)

Bellxouth Enterprises Inc (U.S.A.)

BelfSouth International Inc (U.S.A.)

BeltSouth New Zealand Holdings Ltd (U.S.A.) BeilSouth New Zealand Ltd (U.S.A.)

Benbury Holdings Ltd (Switzerland)

Bentzen, John

Nov 92 89,93-96
Nov 92 1
Oct 92 69
Nov 92 96
Sep 92 22
Nov 92 74, 76
Ju192 87
Dec 92 7.8
Dec 92 7
Aug 92 98
Aug 92 98
Dec 92 21
Aug 92 98, 7
Nov 92 74, 76
Dec 92 12
Scp92 31
oc.sz 57
Nov 92 82
Sep 92 35
Dec 92 17
Sep 31
Nov 92 74, 76
Dec 92 37
Oct 92 71
Sep 92 22,26
Aug 92 99,3
Dec 92 12
Aug 92 7
Nov 92 2
Nov 92 91
Nov 92 91
Sep 92 39
Dcc92 12
Sep 92 21
Sep92 32
Dec 92 25,27
Dec 92 25,27
Dec 92 25-27,39
Dec 92 39
Dec 92 39
Dec 92 39
Dec 92 26,27
Dec 92 8,9
Sep 92 21
Page 39 Date

Nov 92 Nov 92 Nov 92 Dec 92

adjacent 149.7145 ha, and 199.4602 ha, farms Nov 92

Blueskin Ltd (US.A) Aug 92

BMW New Zealand Ltd (Germany) Nov 92

New Ltd (U.K.) Oct 92

Bowater Overseas Holdings Ltd (U.K.) Oct 92

PIc (U.K.) Oct 92

Bowater Print and Packaging Ltd (U.K.) Oct 92

Bowker Holdings 13 Ltd (Australia) Nov 92

Bridge City Estates Ltd Sep 92

Investments Ltd Dec 92

Peter John (Australia) Aug 92

Broomfield, Mr David Benjamin and Mrs E.B. Aug 92

Broomfield. Mr David Benjamin and Mrs E.H. Nov 92

BTR Nylex Holdings N.Z. Ltd (Australia) Dec 92

BTR Nylex Ltd (Australia) Dec 92

Business Printing Group Ltd (U.K.) Oct 92

Butterworths of New Zealand Ltd (U.K.) Scp 92

BZW New Zealand Ltd (U.K.) Nov 92

C Itoh and Co. Ltd (Japan) Sep 92

Cadenza International (Guernsey incorporated. U.S.A. owned) Nov 92

Cambridge, Orepunga Road, 58.6 ha. dairy farm (Germany) Oct 92

Capital Electricity Finance Ltd Nov 92

Carrier Corporation (U.S.A.) Dec 92

Carrier International Finance NV, Netherlands (U.S.A) Dec 92

Carrier Zonepak Ltd (U.S.A) Dec 92

Cassidy Woods Ltd (Canada) OcL 92

Christchurch, Coutts Island, 172.512 ha, freehold/leased fine wool farm Sep 92

Christchurch, Yaldhurst, Main West Coast Rd. 5.7057 ha, rural property (Australia)Nov 92

Collins Olympic Ltd (Australia) Aug 92

Comtel Communications Lid (U.S.A.) Dec 92

Coromandel Peninsula, Whangapoua Forest (Malaysia) Sep 92

Coromandel, Waitekauri Valley, 2.5 ha. rural land (U.S.A.) Oct 92

·"' ...... '"' .. <>1" Investments Ltd

Countrywide Banking Corporatlon Ltd (U.K.)

Christchurch, 172.512 ha, freehold/leased fine wool farm

Fiordland, sq. m. property (Singapore)

Cyprus Gold New Zealand Ltd (U.S.A.)

Minerals Company (U.S.A)

Dancette Holdings Ltd (Australia)

New Zealand Ltd (Australia)

""""''''''' Southland, 158.8000 ha. forestry land (Japan) Dipton, Southland, 761.0366 ha. forestry land (Japan) DRO Industries Ltd (U.K.)

DRG Packaging (New Ltd (U.K)

""'-1'""1"."' Ltd

Dumlop, Mary Elizabeth (Australia)

Green Island Bush Road, right of way casements (U.S.A.) D. and F. Man Ltd (U.K.)

E. D. and F. Man New Zealand

E. D. F.

Scp92 Aug 92 Scp 92 Oct 92 Oct 92 Oct 92 Sep 92 Nov 92 Dec 92 Dec 92 Oct 92 Oct 92 Nov 92 Dec 92 Oct 92 Aug 92 Aug 92 Aug 92

86-88 86

87

10 n

4

73

50 48,54 48-51

48-51, 53-55 86-88 40,44,46 12

15

100,1 100

37

37

51

41

91

16

1

65

2

19

19

19

63

18

86-88

99

4

19

62

43

7

18

59

62

62

39 89,93-94 28-31 28-31

55

49,53 79,81-84 36

67

12

6, 11, 12 12

Page 40

Scp

Endeavour Multiplex Ltd Oct n

Enterprises Ltd (Japan) Oct 92

Ernslaw One Ltd (Malaysia) Sep 92

Information Network Ltd (Australia) Nov 92

Fanners Co-Op Federation NZ Ltd Nov 92

Farmers Trading Company Ltd (Australia) Nov 92

Fibreform Group (U.S.A) Sep 92

Pibreform International Corporation Inc. (U.S.A.) Sep 92

Fibreform Products Inc. (U.S.A.) Sep 92

Field, Mr A. (U.S.A.) Aug 92

Field, Mr K. (U.S.A.) Aug 9

Fincen Holdings Ltd (U .S.A.) Aug 92

Finccn Holdings Ltd (US.A.) Nov 92

Fiordland, Cromarty, 2224 sq. m. property (Singapore) Oct 92

Fiordland Wilderness Lodge Ltd (Singapore) Oct 92

Fletcher Challenge Ltd Dec 92

Fletcher Challenge Ltd Oct 92

Fletcher Challenge Ltd Sep 92

Fang, Peter (Singapore) Aug 92

Fong, Peter (Singapore) Nov 92

Forestry Corporation of New Zealand Ltd Sep 92

Fosters Brewing Group (Australia) Nov 92

Fosters Brewing Group (Australia) Sep 92

Franklin. Bycroft Road, 6.2378 ha. property (Japan) Dec 92

Fresha Holdings Ltd Nov 92

Fresha Holdings Ltd Sep 92

Frisch Karavest Ltd (Germany) Oct 92

Frisch. Mr and Mrs (Germany) Oct 92

frost, Walter Jared (Indonesia) Aug 92

Holdings Ltd Nov

Gedera Holdings Ltd (Taiwan) Dec 92

General Accident PIc (U.K.) Dec 92

Resources Ltd (USA) Aug 92

Mr Hyun (Australia) Sep 92

Glamic One Ltd (U.s.A.) Dec 92

Golden Bear Holdings Ltd (U.S.A.) Aug 92

Goldmer Holdings Ltd (U.S.A.) Nov 92

Graphexact Ltd Dec 92

Greer, E and D.A .Scp 92

Guest, N.M. (Australia) Nov

Hanmer Springs, 1515.324 ha. farm ("Karaha"), Leslie Pass Road (New Caledonia'Dcc 92

Hastings, comer Kereru and Aorangi Roads, 145.9739 hectare rural property Aug

Hawkes 323 ha, rural land in Tukituki Road (Finland) Dec 92

Highfield Estates (1991) Ltd (Japan/U.K.) Dec 92

131.5301 ha. diary farm (Germany) Dec 92

family (Japan) Sep 92

2

81

20

2

2

41

68

57

19

76

84 89,93-96 34

33,34 34

8,10 28,9,10 8,9,13 80

59

59.61

14

71

26

100,1 100

33, 34 79,81-84 20

32-33 79,81-84 20

65

65

1

89-90, 93-96 40

15

98, 7 40,44,46 27, 39 8,9

85

38

29

88

.5

10,13

6

10

35

18

Date

Ltd (Hong Kong)

Dcc92 Nov 92 fJec

Howick Parklands Ltd (Australia) Aug 92

Hoyts Operations Ltd (Australia) Oct 92

Holdings Pty Ltd (Australia) Oct 92

Hunt, M,K. Hunt Foundation Dec 92

Innosho Woods Ltd (Japan) Oct 92

International Finance Ltd Nov 92

Invercargill, Otatara, 17.314 ha, property on Black Road (Singapore) Oct 92

Ishizuka, Masahide Sep 92

Itoh, Itoh and Co Ltd (Japan) Dec 92

I1T Rayonier Inc (U.S.A) Dec 92

ITT Rayonier New Zealand Ltd (U.S.A.) Dec 92

James Smiths Department Stores Ltd (Australia) Nov 92

IFF' Energy, Inc (U.S.A) Sep 92

Jims Way Properties Ltd Aug 92

Jims Way Properties Ltd Nov 92

John Kemble Winery Ltd (U.S.A.) Aug 92

John Kemble Winery Ltd (U.S.A.) Nov 92

Johnstone. Mr A. L. Oct 92

Joslin Mariners Ltd (U.K.) Sep 92

Joslin, Mr AJ.F. (U.K.) Sep 92

Kaitangata Forest, South Otago Aug 92

Kaitangata Forest, South Otago Dec 92

Kaplan family, members of (U.S.A.) Dec 92

Karaha, 1515.324 ha, farm in Leslie Pass Road, Hanmer Springs (New Caledonia) Dec 92

Karaha Holdings Ltd (New Caledonia) Dec 92

Kawashima Group (NZ) Ltd (Japan) Nov 92

Kawashima Textile Manufacturers Ltd (Japan) Nov 92

Kemble, l.R (U.S.A.) Nov 92

Kemble, John and Margaret (U.S.A.) Aug 92

Kenson Industries Ltd (Japan) Nov 92

New Zealand Ltd (U.S.A.) Dec 92

n.A", ",-",,' Holdings Ltd (Singapore) Oct 92

Kisbee Lodge Ltd (Singapore) Oct 92

Lake Ototoa Stud Ltd Sep 92

Lake Rotokawa (Taupo), sulphur mining permit over 353.0766 ha. of rural land Aug 92

Lilybank Station, 27,526 ha.Ieased/Ireehokl sheep station Sep 92

Lavoix, Mr (New Caledonia) Dec 92

Lawrence Forest, South Otago Aug 92

Lawrence Forest, South Otago Dec 92

Le Pine, Peter, Ann and Timothy Dec 92

Mr (New Caledonia) Dec 92

Lillburn Valley, Southland, 1102.4892 ha, forestry land (Japan) Dec 92

Lillburn Valley, Southland, 1140.7970 ha. forestry land (Japan) Dec 922

Lillburn Valley, Southland, 318.8500 ha. property (Japan) Dec 92

Lillbum Valley, Southland, 976.3407 ha, property (Japan) Dec 92

Lilybank Station, Lake Tekapo, 27,526 ha. leased/freehold sheep station Sep 92

Liou Family (Taiwan) Dec 92

Loka Manya Prawiro (Indonesia) Aug 92

Investments Ltd (U .S.A.) Dec 92

Mackay Sugar Co-operative Ltd (Australia) Aug 92

Ltd Nov 92

11

85

12

97

68 68,69 28-31 52

2 60,61 18

20, 22, 28-31 16

16 89,93-94 17

100, 1 100

8

80

58-61 23,28 23,28

98

21

17

5

5

78

78

80

8, 10, 13 n

17 59,61 58,59 40,44 98, 7 24

5

98

21

5

5

28-31 8-31

20

20

24

40

100

34

6, 6a, 11 1

Page

Multi Access Airline Reservation Systems Ltd lIJ>'·(',"""r'l1(~", Ltd

View, Puna Mara Forest, 170.9439 hectares rural land (Canada) National Australia Bank Ltd (Australia)

National Australia Group (NZ) Ltd (Australia)

Bank of New Zealand Ltd (U,K)

National House Industrial Co. Ltd (Japan)

Natural Gas Corporation Holdings Ltd (Australia) Natural Gas Corporation of New Zealand Ltd (Australia) Negociants New Zealand Ltd (Australia)

Nelson Pine Industries Ltd (Japan)

New Zealand Plan International Ltd (Japan)

New Trophy Guide Service Ltd (Indonesia)

News Corporation Ltd (Australia)

Ngongotaha Saleyard Ltd

Nobleburn Forest, South Otago

Nobleburn Forest, South Otago

Northland, Hikurangi, 131.5301 ha. diary farm (Germany) NZI Investment Services Ltd (U.K.)

NZm Investments Ltd (U.K.)

Minerals Ltd

Co. Ltd (Japan)

Ltd (Japan) Fund

P".'p"tlr" Fund

(Singapore)

Islands)

Date

6

Dec 91 Nov 92 Dcc92

Dccn Nov 92 Dcc92 Nov Oct Oct 92 Aug 92 Aug 92 Dcc92 Oct 92 Scp 92 Oct 92 Scp92 Sepn Sep92 Sep 92 Sep 92 Nov 92 Aug 92 Dec 92 Dcc92 Oct 92 Dec 92 Aug 92 Sepn Dec Augn Dec 92 Dcen Dee 91 Nov Augn Scp 92 Dec 92 Oct 92 Decn Sep 92 Sep92 Sep 92 Scp92 Oct 92 Dec 92 Dec 92 Sep 92 Nov 92 Oct 92 Oct 92 Sep 92 Oct 92

93-94

12

28

34

92

17

76 68,69

63

99,3 99,3

14

52 22,26

71

29

43

18

24

39

83

98

21

35

70

15

98, 7

16 20,22

98

21

40

40

78

4

32

16

60,61

22 40,44,46 40,44,46 39

21

52

40

11

21

99

66

66

32

63

114 ha. of rural land in Bald Road (Switzerland)

Napier, 170.9439 hectares rural land (Canada) (Indonesia)

ha, of rural land (Singapore/Indonesia) t,}ucerlstclwn 6.1557 ha, rural property on Speargrass Fiat Road (U.S.A.) Arrowtown, Malaghan's Road, 29.28ha. property (Japan)

Dalefield, ha, property (Australia)

Lower Shotover Road, 4.1522 ha, rural property Rawson Industries Ltd (Australia)

K.H. and C.A.M. (Germany) Reed International Pic

Overseas B.V. (U.K.)

Renwick, Marlborough, 1.2142 ha. vineyard, cnr State Highway 6 and Blicks Rd Resource Links Ltd (Thailand)

Riding, Ms J.A (U.K.)

Rosaco (Jersey) Ltd (Finland)

Rosenlew, F.W. (Finland)

Rotorua Saleyards Ltd

Rouse, John Charles

Ruaig Investments Ltd (U.S.A)

Ruatoria, 1676.2078 ha. Horehore Station in Horehore Road Rural Bank Ltd (U.K.)

S. Farm Number 1 Ltd (U.S.A.)

s.c. No.1 Ltd (U.S.A.)

Salman, David (Indonesia)

Sanford, R. K, and L. S. (U.S.A.) Sato, Mr Y. and Mrs F. (Japan) Sealord Products Ltd

Investments Ltd (U.K.)

Sentry Investments Ltd (U.K.)

MrT. MrH.

Orchards Ltd (Japan) ... ",,",,,,,,,",-, Environmental Engineering Ltd Shimizu, Mr Minoru (Japan)

Developments Ltd (Australia)

S. Smith and Sons Ltd (Australia)

Sombar Enterprises Ltd (Australia)

South Kaipara 237J)S ha.

Date
Scp92 40,44,46
92 3]
92
Scp 33
Nov 92 92
Oct 92 63
Scp92 24
Nov 92 74, 76
Nov 92 100
Nov 92 85
Oct 92 57
Aug 92 15
Sep 92 35
Aug 92 15
Dee 92 35
Sep92 41
Sep 92 41
Sep92 29
Sep 92 35
Sep92 23,28
Dee 92 6
Dee 92 6
Nov 92 81
Dee 92 36
Dcen 17
Deen 36
Decn 14
Aug 92 9
Nov 92 80
Augn 1
Sep 92 18
Aug 92 4
Oct 92 57
Dec 92 12
Dcen 15
OcL 927 0
Dee 92 11
Dee 92 11
Dec 92 32-33
Dec 92 32-33
Nov 92 89-90,93
Sep 92 29
Nov 92 89-90,93-96
Sep92 44
Sep92 46
Dee 92 28-31
Nov 92 74
Dee 92 28-31
Dec 92 28-31
Deen 28-31
Dce92 28-31
Dcen 20
Dec 92 20
Dec 92 22 Page 44

Dec 92 92 92 Aug 92

Sumirin NZ Ltd (Japan) 92

South Otago Aug 92

Taieri Otago Dec 92

Tasman Forestry Ltd Aug 92

Tasman Ltd Dec

Taupo, Pukekurie Road, 12.380 ha, rural property (U.S.A.) Dec 92

Te lka Ltd Dec 92

Te Waka Unua Ltd Dec 92

Telecom Cellular Ltd (U.S.A.) Dec 92

Telecom Cellular Ltd (U.S.A.) Oct 92

Telecom Corporation of New Zealand Ltd (U.S.A.) Dec 92

Telecom Corporation of New Zealand Ltd (U.S.A.) Oct 92

Tenuwera, Mr (U.K) Dec 92

Tetra Pak (NZ) Ltd (Switzerland) Dec 92

Tetra Pak Group (Switzerland) Dec 92

Tiong family (Malaysia) Sep 92

Travel Communications Ltd Nov 92

Utilicorp United Inc (U.S.A.) Aug 92

Utilicorp United Inc New Zealand Branch (U.S.A.) Aug 92

V. A. Holdings Ltd (Australia) Nov 92

Venture Stores (1992) Pty Ltd (Australia) Nov 92

Vestey Family. (U.K.) Dec 92

Vintage Holdings Ltd (Singapore) Oct 92

Vivid Holdings Ltd (Japan) Oct 92

Vox Ltd (Australia) Nov 92

W. Weddel and Company (New Zealand) Ltd (U.K.) Dec 92

Waihopai Valley, Blenheim, adjacent 149.7145 ha, and 199.4602 ha. farms Nov 92

Waikato Electricity Authority Aug 92

Waitati, Otago, Clark Road, 33.8747 ha. farm Aug 92

Waitckauri Valley, Coromandel, 2.5 ha. rural land (U.S.A.) Oct 92

Wanganui Gas Ltd Oct 92

Weddel Group (U.K.) Dec 92

Weddel Westfield Ltd (New Zealand) Dec 92

Weidmann, Me Hans-Peter (Switzerland) Nov 92

WEL Energy Group Ltd Aug 92

Whangapoua Forest, Coromandel Peninsula (Malaysia) Sep 92

Whangarei, Otaika, 18.3934 ha. rural land in Valley View Road Sep 92

Whitford, 1640 ha, farm in Broomfield Road Aug 92

Whitford, Auckland, 537 ha. property on eastern side of Whitford/Maraetai Rd Dec 92

Whitianga, SkID south of, 1 ha, rural land on State Highway 25 Sep 92

Williams, Mrs lA. (U.K.) Nov 92

Wilson Neill Ltd (U.S.A) Nov 92

Woodlot Farm Ltd (Singapore/Indonesia) Aug 92

Woodlot Farm Ltd (Singapore/Indonesia) Nov 92

Wuu, MI' G. K. C. (Singapore) Oct 92

Yaldhurst, Christchurch, Main West Coast Rd, 5.7057 ha. rural property (Australia)Nov 92

Yokoi, Mr Shin (Japan) Dec 92

16

2 2

98 21 98 21 34 12 12 4 67 4 67 10 9 7-9 19 74 5

5

89-90, 93-94 96 38,41A 60,61

57 89,93-96 38,41A 72

5

4

62

71 38,41A 41A

92

5

19

32

97

17

19

72

1

]00, 1 100 58-61 86-88 10

Horton

is one long cry from heart by a card carrying

member of the liberal It can be summarised in 3 words: "We wuz robbed". Mcl.auchlan is a wellknown author and columnist, and a lot of it reads

a newspaper column, padded out by rather too much mildly amusing doggerel.

Essentially, he feels betrayed by all politicians, for the last 20 years. There are no exceptions, and definitely no heroes. The book is one big moan. A perfectly justified one, I hasten to add. But it falls into the traps of too much political commentary in this country. Its pen portraits of current and past politicians, of all parties, are bitingly accurate. That's all right as far as it goes.

But there is no real overall analysis. This is a very small country, where everyone knows everyone else. Hence things become rapidly personalised. This was the great weakness ofthe opposition to Muldoon - it expended all its effort on the man, not what he represented. The same is happening with current Ministers, particularly Richardson and Shipley. It might be amusing to consider the uses of Lockwood Smith's teeth in future power cuts, but it gets us no closer to understanding

New Zealand has drastically changed for the worse. is no discussion of international trends, nor the transnationalisation of the world economy, and certainly no analysis of the capitalist system that is at the heart it

I read this agreeing most of what Mcl.auchlan said. But so His newfound bourgeois angeris the status quo now. Tell us something we don't know.

me a double whiskey, barman. I've just found out that politicians ten lies'"), And where was he, and his ilk, when Big Con was being committed? Wasn't he the man who wrote a biography of the 80s biggest con, Alan Hawkins, and who fronted the TV commercials for when Prebble flogged it off to the Yanks? It's too late to join the majority opinion the event And its too trivial to ascribe it to the of a handful of policolumnists (or,

It leaves us none wiser;

even worse it contributes to

As for 111e "death of the Kiwi dream", K can vividly remember the Good Old Days, They weren't so bloody marvellous. A significant proportion of New population rebelled against them, in a variety of ways. People wanted fundamental change, and what they got was a fullspccd reverse to the l Sth century. Simply hankering for an imaginary Kiwiopia of the past is nowhere ncar enough. The book presents the debate as between two failed versions of history .. the New Right neofeudalism versus 1930& welfarism. Neither is a particularly appropriate model for this country's future; nor do they empower the majority of the population. A new vision is required, not simply a shouting match between "More of the same" and "You can't tum back the clock".

"CONTROLLING INTERESTS:

Business, the State and Society in New Zealand"

Edited by John Decks and Nick Perry Auckland University Press

- Bill Rosenberg

Tins is a collection of papers, mainly by academics, on a variety of aspects of Aotearoa society, all asking the question "who's in control?"

Some writers are more incisive in who they accept as the ultimate "controller" than others. Some, such as Margaret Wilson's "case study" of how the ill-fated Employment Equity Act 1990 was pushed through, or Garry Henley's story of how New Zealand Steel tried to come to terms with the Tainui Maori Trust Board, get little further than who was who, who were visible allies, who were visible opponents. They are interesting stories nonetheless (though Henley's reads like a sanitised company history).

The more interesting chapters touch more deeply on the economic interests involved and their effect on policy and people.

nAC most interesting 10 CAFCA (and the main reason K read the book) is the first chapter: "National sovereignly, deregulation and the multinational: New Zealand in the 1980s", by Nigel Haworth, then a Senior

a useful summary ofthe owned and the allow us to know

Overseas Investment which is of limited use. But he uses other sources (not Watchdog) and so provides a useful limited bibliography of such

For Britton' estimates that in.

Ulfll .. """lIW·" companies uses the non-

of those with more than 50% foreign accourueo for 24% of the assets of New 250 biggest companies, Ward' estimated by 1989, foreign investments totalled more than .!j£.~L,'.J".9V million, excluding life offices,

analysis out the change in official

views of the Multinational Corporations (MNCs) - from accepting but careful, to uncritical acceptance. He points out the negative effect on sovereignty and democracy of the MNCs, but concludes in the end that there is little that a small nation like Aotearoa can do, particularly since there is no coherent public support

John chapter, "Who's choking smoking? Advertising, sponsorship and government regulation of the tobacco industry", is a worthwhile summary of the forces arrayed for and against the 1990 Smoke Free Environments Act, which banned advertising of tobacco products. Most interesting are the various tactics used transnational tobacco companies, new spa-

and magazine publishers, and advertising agencies and their propaganda organisations such as the Tobacco Institute. Deek names companies involved (for example, Rothmans, Wilson and Horton) and documents their international ties in their vociferous, devious, often desperate campaign.

TI1C other two most chapters I found most useful were those Austrin on the transformation of work in the finance sector, and Ranginui Walker'S "The Treaty

of and the fishing industry."

an international and technological

context changes in the work of workers in the

industry. Di fferent financial sectors are increasingly merging. and with computer technology, the bulk to be done is now with the customer rather in the back rooms. This is having a

on what is expected of employees, which in the restructed structures of unions,

Walker's is

history

Maori

Page

fishing, and an effective counter to those pursuing Maori the naive hope that Maori capitalism win offer to Maori more than in general

offers to people: "The composition of

board (of the Maori Commission,

bypassed the Maori own independent Maori Fishing Corporation) ensured that the management and direction of Maori participation in the fishing industry would fit the capitalist model of development and be compatible with government. economic goals". This effectively put the Maori into the extractive mode of western capitalism. The social and conservation goals inherent in the Tangaroa Corporation (established by the Maori Council in 1988 to manage Maori fisheries) initiated by Maori leaders was effectively obliterated." Walker is no friend of the Sealord deal!

Other chapters deal with sectoral interests, structural change and public policy; the attempted CTU Compact with the government; enforcement of occupational health and safely; the bureaucracy and government policies shaping TV in Aotearoa; and the change of legal practice from a profession to a business.

Perry in his conclusion says that the book is aimed at university undergraduate students, and then spends some space discussing the relationship between language and reality. It is a pity that some of the writers succumb to the academic disease of writing in a private language that is supposedly to bring objectivity to the discussion, but in fact seems designed to protect the subject matter from the general reader'. I don't believe that even undergraduates benefit from such impenetrability. But there's some good material in here, including some not usually available to the general reader.

I Brinon.S; Australian Geographical Studies, 29 (1), 1991, "Recent trends in the Inremationalisation of the New Zealand economy".

2 Ward, R., Management, August 1989, "Foreign investment a yen for something kiwi."

3 Perry's own phrase "the gender category other than your own", meaning "the other sex" is at least comprehensible. But his paper is riddled with sentences like "Understood in terms of the systemic structuring of expectations by the wider institutional framework, the discrete strategies of domestic compensation and domestic defence may produce similar effects under conditions of labour shortage" - meaning (I think) that "Wages policies and industrial development policies may both have a similar effect on wage expectations when there is a labour shortage" - which do nothing either clarity or objectivity.

who were intern on their privileged position in the NZ market, at the of the new imperialists, the Japanese. in the days of Piggy, tariffs, and subsidies. Well, all three are history now, and Japanese cars rule the roads in New Zealand.

But the car industry remains a fascinating study in the politics of multinationals, indeed it is one of the most nakedly political of all industries operating here. Essentially the local car assembly industry has ceased to exist within the space of the last couple of decades, with resultant mass redundancies. And what's left is facing the prospect of having its wheels fall off (pun intended).

The car industry has an apt phrase for its own parlous state. Cars that arrive here to be fully assembled local! y are referred to as CKD (Completely Knocked Down). That used to be the practice. But the car multinationals now prefer to send their vehicles here CBU (Completely Built Up). Consequently, it is the industry itself that is fairly much CKD.

Signs of its malaise are recent and ongoing. For example, in February, Ford announced that it win stop assembling Falcons in NZ, using its Broadmeadow plant, near Melbourne, instead C'Press'', 4/2/93). And Honda made redundant 24 of its 214 staff at its Stoke plant, which it described as "uneconomic", but not in danger of closure "("Press", 1 0/2/93).

Why is the local car industry on the skids (pun intended)? WeB, a fascinating sideshow unfolded in late 1992, whereby the industry launched a wholesale attack on the thriving trade imported second hand Japanese cars. They were presented as the villains. And indeed New Zealand imports more of them than any oilier country (it helps that Japanese cars are made forr right hand driving). TIley have substantially the average cost of a second hand car in NZ, costing less than $10,000 (compared with up to $30,000 for a new car).

car have 'become a in

trans- Tasman relations. Australiahas effectively banned the by a prohibitive $A12,OOO on second hand car. The NZ industry has

proposed a ban on the import of near new cars;

?

on 3 year old cars, reducing

out. at for a 7 year old car.

Ministry Commerce report called

an effective ban on ncar new imports, because they

arc undermining the new car trade. But all

this against the grain of an ideologically zealous

Government committed to deregulation and free trade. Tariffs. subsidies, duties. bans. Government intervention - wash out your mouth with soap! Ruthie wouldn't have a bar of it, and neither would Philip Burdon, the Minister of Commerce. 'Inc whole issue has been put on the back boiler, to be dealt with after the Australian election.

The new car industry employs 2745 people who are directly involved in assembling cars. According to the Commerce report, only 550 residual administrative jobs would be left if the assembly plants closed. There arc more than 4500 workers employed in the manufacture of new car componentry (with export sales of more than $148m in the year ended June 1992), and the Commerce report estimated at least 2400 of them would go if the plants close. There are a further 9600 employed at the retail end of the new car industry. By contrast. second hand imports employ 1700 workers preparing the cars for use, with 5000 involved in sales. But 0111y about 375 are completely dependent on the trade ("Press", 3/10/92).

appeals involving job losses were met with scepticism. The "Press" wrote an editorial, entitled "The protection racket" (6110/92), claiming that the current level of protection to the car assembly industry amounts to more than $300m per year, or over $90,000

job. It also quoted the Commerce report's conclusion that acceding to industry requests to ban second hand imports "will not ensure the future of the industry, althoughitcertainlyrnay assure its survival until 1996 .. " Editorial accusations about "featherbedding" could only be expected from the Tory press. And there is an underlying cynicism inherent in ruthless car multinationals shedding crocodile tears about possible redunThe very same multinationals have quite happily dumped thousands of workers when it suits

corporate interests, and continue to do so.

While it lasted, new cars versus "Japanese junk" argument was a highly amusing imbroglio between capitalists. The Imported Motor Vehicle Associ arion hit back with tun page ads ("Press",

Should You Put

mantra, of choice is the only

choice". truly breathtaking arc made

"What (the new car industry) don't seem to accept

is that in the New Zealand marketplace,

has shifted to the must have missed

something the way). It concludes: "So, how do you feel about a bunch of mainly overseas-owned car corporations telling you and your government that you should be of the freedom to choose?"

amusing as it was, it was only a side issue, or a "red herring" in the words of a second "Press" editorial on the issue carrots and cartels", 11/12/92). Worldwide, new car sales arc in a slump, including those of the once invincible Japanese car manufacturers. At the end of 1992, the US car giants, Ford and General Motors Holden, registered 5000 cars as "demonstration models", in Australia. Although they hadn't actually been sold, they were recorded as sales because they had now acquired number plates! "Now dealers have ended up with these demo models on their hands and to get rid of them they're offering discounts of to $A5000" ("Vanguard", 3/2/93). New car growing in Australia, where it is a major industry (384,000 in 1989/90), but sales have fallen. Mass redundancies and replacement of workers by new technology have become the norm. A worldwide recession is the obvious reason why less people have money to spend on new cars.

There arc reason."; why the NZ cal' assembly

is in such big trouble, and they are nothing to

rananese second hand car multi-

nationals themselves have effectively destroyed the local industry, it suits interests to do so.

new cars sold here were also assembled here. This year, for the first time.It looks as ifrnore fIlCW cars will be fully built up than are assembled here. That is partly because assem bl y of between 11 and 1 cars a year shifted

1990, influenced

"

lion.

New the world's most important

car assembly industry, taking And the existence industry, however derisory has distinct advantages to its much

counterpart Under CER, Australian exported here duty free, because the local plants some nominal "local content". So that lucrative duty free status would go if the local plants closed.

The New Zealand industry and Government have been trying to pressure Australia into allowing, for the first time ever, the importing of New Zealand- assembled new cars. 111is would be the quid pro quo for allowing the Aussie export subsidy to remain. It is believed the Australians win allow NZ-assembled vehicles to be imported duty free, as long as local (Australian) labour and material content is at least 40% ("Press", 4/2/93).

But this proposal to "rationalise" trans- Tasman new car manufacturing has split multinationals. Some fear that New Zealand's "competitive advantage" e.g. cheaper labour, land, and business costs, could lead to significant new car assembly investment in New Zea-

land, not Australia. Motors Holden, which has

no NZ assembly is adamantly opposed to

any such the other hand, Ford,

Toyota, Mitsubishi, all of whom have NZ plants,

are keen then there is the Japanese

"The would much we bought their

new cars thei r old ones. 111C New Zealand

Government has received plenty of warnings thai. withdrawal car company - which are flagships of Japanese industry - would colour other inves-

tors' attitudes.... , 3/10/92).

So, once we have the situation where New Zealand industries are threatened by the whims richest and most powerful

multinationals, to see which side of the

Tasman will most lucrative deal. The

over of second

49

the central

Back in the halcyon days of the Lange government (remember "the little country that could?"), there was a lot of hysteria spread about nuclear free (sic) New Zealand infecting the world with something called the "Kiwi Disease" Ironically the real fatal legacy of that particular government was caned Rogernomics.

it's still raging unchecked,

Now, the present government wants to infect the whole world with the real Kiwi disease.

"New Zealanders' experience in economic restructuring is being promoted internationally in a directory jointly produced by MERTand the Trade Development Board .. Announcing the publication, the Minister of Trade Negotiations, Mr Burdon, said there was a strong demand for specialist expertise in the areas of privatisation and corporatisation ... 'New Zealand has a wealth

"We arc committed to continuing our programme of selling State businesses in a way that leaves taxpayers, producers, consumers, and the Government's finances

in a better "(t'Press", 26/11/92). Attagirl!

She sounds resolute, but only selectively. "Watchdog" 71 reported that the combined weight of the country's accountants and lawyers opposed a new international tax regime that would have "biassed" investment in favour Zealand. Predictably, it didn't last, and the taxman will not now secure full recovery of company taxes paid offshore by New Zealand firms. Thus it will remain more lucrative to invest overseas, rather than in New Zealand. If the government applied itself to tax fiddles with the same rigour that it does to spying on beneficiaries, then it might be said that there is some justice. fat chance.

NI

N

Some

Insider

You only have to tune into talkback radio to hear widespread concern that "the bloody Asians are taking us over". In fact, our dominant foreign owners remain resolutely white - Australians, British, Americans, Europeans. Elsewhere in this issue, the British High Commissioneris quoted estimating British investment here to total $6 billion. The Asians come a long way behind that

So, it's useful to have some facts about this much hyped Asian investment We have some from an insider's perspective. John Cameron is the executive chairman of Jones Lang Wootton NZ, an international realtor specialising in expensive Central Business District (CBD) hotels and commercial real estate deals. At the Japan/New Zealand Business Council's annual meeting in Christchurch (October 1992), he presented a paper entitled: "The New Zealand Property Investment Market - and Commercial" Some quotes:

" ... We have taken an extensive but not exhaustive sample of 32 Asian transactions above $5 million which have occurred in Auckland, Wellington and Christchurch since 1988. representing $NZ721m worth of sales ... The origin of the overseas investment money is evenl y spread in New Zealand, unlike similar statistics for Australia where Japa-

nese investment dominates in the commercial proparena ... "

"In

sector it is estimated that in Aus-

Asian owned properties are developers" Here in New it is obviously considerably less. We have seen over the last 12 months a number of hotel or leisure transactions in New Zealand. The higher

profile are as follows ... "

!---~:.=_=~~nstown 18

Parkro al ueenstown 21

HOTEL LOCATION Inn, ChCIl

" ... There has of course been quite a significant pause in investment in New Zealand by Japanese parties. This has been significant] y exaggerated by the restrictions in Japan by the Ministry of Finance upon lending against property. We very much hope, as I am sure Japanese investors do, that before long normality will return ...

"The recent sale of the Plaza International Hotel in Wellington must certainly be considered the best value for money in bricks and mortar likely to occur this decade ... New Zealand has to compete globall y for the investment dollar into hotels, just as it does into any other sphere ... Nonetheless a number of Southeast Asian investors are focused on developing a chain of hotels throughout New Zealand. Normally incorporating Auckland and Queenstown with Rotorua, Christchurch and Wellington following, in order of desirability. Queenstown now appears 10 be emerging as the growth area with plans for further development. Overseas investment activity into Queenstown is proof of that point.,

far enough returns to make the circumstances tive as Finance

ment maiket...

SingaporelMalaysia

" ... the 'hottest' markets CUf-

They have monies to invest and they are familiar and comfortable with New Zealand, as a large number of wealthy families had their children educated in this

($NZm) 11.6

country in the 70s and 80s ... This interest is for shopping centres showing around 13% and office buildings at 1O-12% ... In Australia and New Zealand many of the recent hotel transactions of 1990/91 have gone to Singapore investors ...

Indonesia

" .. .IL was an Indonesian consortium that was responsible for the largest deal in New Zealand over the last 12 months .. .In the main, these Indonesians are of Chinese origin and they prefer to buy a.c; consortia ... Their main focus is in tourism and office buildings ... Wc see Indonesian interest in New Zealand becoming more significant this year and next.,

Taiwan

"I suppose Tai wan has been a disappointment to us in New Zealand and maybe in Australia, in terms of the source of investment capital.;."

- .. ----~-. -~-------
-Country ASIAN BlJYER PREFERENCE
Retail Office Tourism
-.- r- -
Japan 3 2 1
Singapore/Malaysia 1 2 3
Indonesia 3 2 1
Taiwan 2 1 3
Hong Kong 2 1 3
_. "Almost without exception, New Zealand's major attraction 10 foreign investors is the high yields available ... Very often the calculation that Asian investors make is simply the repayment time in years i.e. a 15% yield repays total cost of the product in 6 years ... New Zealand is obviously attractive

with good returns, favourable economic factors and regulations ... "

Characteristics of the Various Asian Investors

Japanese

" ... Although Japanese interest rates have come off their of early 1991 at 6.5% they are not down

"Why is New Zealand a More Attractive Destination Hum Australia?

1. Yields are higher than Australia.

2. Stamp Duty at 2% is lower than the 5% average in Australia.

3. There is no

4. There is a Investment

Commission attitude which is and eon-

51

So mere you have it TIle Japanese do not dominate the NZ property market, and Japanese property is dropping off. Unlike Australia, Asian investment is more evenly spread, with Singapore/Malaysia, and Indonesia increasing apace. The much maligned Taiwanese don't get a look in. Asian investors can get

it

HART STOPS

S Long, and Thanks

-Murray Horton

The November 1992 decision to wind up HART (Halt All Racist Tours), after 23 years of militant antiapartheid struggle, ends a significant era in the New Zealand progressive movement. Coupled with the Decemberdecision to also wind up its comrade in arms, CARE (Citizens' Association for Racial Equality), it ends a whole chapter of a still unfinished book. And on the subject of CARE. a special tribute needs to be paid to Tom Newnham for his long years of courageous leadership. He personified CARE

CAFCA has its own reasons to mark the passing HART. We have directly cooperated on past earnpaigns eg we bought $1000 worth of Fletcher Chal-

lenge shares in late 80s and let the

movement act as our proxy at the various special AGMs that resulted. This was an ultimately successful campaign to pressure FCL to disinvest from South Africa. We provided information 011 South African-owned mining companies involved in the NZ gold industry, another HART target of me 80s. We passed on a lot information about multinationals breaching the economic boycott of South Africa, information that carne our way in a variety of international publications and UN reports.

We have activists in common also. For example, back

70s, in the days when "Watchdog" was printed

gcstetner, Baker typed me stencils She

the high profile leader of (Coalition Against the Tour) in

Bearthesc

in mind next time you listen to talkback

about the Asian invasion". It present'> genuine grounds for concern, but it's a long way behind the massive "white" takeover of strategic asset" that occurred in the past decade. The Asians have secured the highly rumpus room, but it's our old friends who have bought the whole house from under us.

HART stalwart to the end" HART's history was ours also. CAFCA ultimately grew out of PYM (Progressive Youth Movement), and it was PYM that shouldered tile burden of militant anti-apartheid action in Christchurch in the late 60s and early 70s, until HART got properly established. 'This is well documented in "Rebels in Retrospect", the documentary on the Christchurch PYM. (J can still vividly rem em ber being bombarded with anything that came to hand by a baying mob of surflifesaving spectators when we protested the presence of a South African team at a Christchurch beach; and asphyxiating ourselves with an illtimed borer bomb during a Danie Craven meeting). It was

torrid during campaign of opposition to

the 1970 All Black tour of South Africa.

HART's national office was in Christchurch for 3 at 101 Rugby Street (how ironic). And in those

HART was personified by Trevor Richards. His contribution during these very early years was immeasurable, and it is hard to remember the personal courage he needed to when he was "the most hated man in New Zealand". He was last assaulted in the street as recentl y as the da y the High Court stopped the proposed

All Black tour, and he still engenders fear and loathing to many (to this day my Dear Old Dad refers to him as "that walrus faced bastard, Trevor Hart". To distinguish him from "thathatchetfaced bastard Minto"). Trevor played a magnificent game of bluff, convincing

Government (National and Labour), the Rugby Union, and the public that HART did indeed consist of more than him, a typewriter, and a handlebar moustache. He was seen as a serious threat to Law and Order, so much so that the SIS bugged Rugby St for a very long

In conservative community of the early

was an national figure.

He adopted a number of very successful strategies - he fulltime for the movement; he built a superb

Some of

he event, In the

early

the media took no sent a copy anonymously to "Trull},', writing on it

"Expose this They obliged.

His greatest skill was playing the cop/bad

routine. Tom Newnham and CARE were the nice moderates; the crazed looking Richards threatened mayhem with slogans such as "Give a Disrupt", and "Off the Fence and on to the Field" Of course, HART wasn't operating in a vacuum. was a much wider militant movement, principally against the Vietnam War .. PYM and its successors worked with HART in those days, to make good

the threats. "Rebels in Retospect' details action,

such a" sawing down Lancaster in

protest at the 1970 Tour. for the first time, I can reveal a perfectly serious plan to steal the Ranfurly Shield, then held by Canterbury. and return it to the

Rugby Union in small unless that tour was

called off (neither happened). 1973 at the

US military base at Harewood (which involved the biggest police operation prior to Bastion Point and the 81 Tour) was widely seen as a dummy run for that year's proposed Springbok tour of NZ. The Kirk

Labour government caned it off on advice.

After the Trevor, and HART's na-

to Wellington. His

a consummate and he

to work, firstly, for the PSA (he edited its "Journal" for

in the 80s) following long

as current head of Africa pro-

gramme, He always reminds me that I once publicly

tipped him as ambassador to Uganda, He is

also a cook and general Aro bon

n,.",u'U',,, Tour onto the country, John Minto, an Auckland teacher, was to the task, A charismatic public speaker, an excellent organiser, and

a courageous leader from he soon lined

seamlessl Y into the role of "New most haled

man" (a ridiculous title, as you find a more

unassuming or companionable man, 110r a more doting

daddy). He paid a heavy in tenus of

was a turning point in the

South l!t was a an

'-',-"',,",,UUA event in the history of the NZ progressive movement It showed that hundreds of thousands of ordinary New Zealanders were prepared to fight for a held belief, despite the massive State violence decreed by Muldoon. And yes, any number of CAFCA activists were among the thousands who graced the cells around the country, I was convicted of the heinous crime of reading a paper, in a major intersection, in company of several hundred other carriageway obstructors. Christine Bird was a leading light in the terrorist group, Chickens Against the Tour, which generously donated a box of chookshit to the office of the Canterbury Rugby Union. Personally delivered too. Ann Currie appeared in "Patu" detailing the protective gear that virtually doubled her and weight The ever inventive John Christie designed the grappling hooks which made dogtucker out of the Army's barbed wire entanglements around Athletic Park.

But HART was about considerably more than the very different leadership skills of Trevor Richards or John Minto. HART's greatest strength was its national grassroots membership, painstakingly built up by first Trevor and then John, ceaselessly touring the country. Its secret was its ability to organise in the provinces, and

tapping into other networks, such as the churches, and in the broadbased nature of its members. It spanned all sectors of NZ society and women were always represented at all levels.

HART moved into the minefield of NZ's race relations, and handled it with some dexterinvolved in other regional issues (I gave it a

bollocking its conspicuous silence on the 1987 Fiji

and institutionalised racism that resulted, To its credit it threw in its lot with the forces supporting Fijian democracy). But South Africa remained its raison

d'etre. It ended rather sadly, the media

reporting the public disagreements between Minto and Richards on whether the ANC is in the best interests of black South Africans (I must say here

I remain friends with both it was the ANC's unilateral lifting of all sporting, economic, and

boycotts that put HART out of busi-

its time was up.

for the but can claim its

indeed halted all racist tours.

And

public into a

South Africa and <In<.>,rthp, it was the tiny minority shouting unpopular support for genuine democracy in South Africa (and a wideranging boycott to enforce it) became the status quo by the time Labour came to power in 84. Today abhorrence for apartheid and any NZ support for it is sacrosanct.

It ledNZ

As an extremely successful campaigner. HART provides a shining example for the rest of us. It campaigned tirelessly for years. always with the necessary core group to keep it alive in the slack years, and the ability to mobilise huge numbers around the whole country. It did ceaseless educational, publicity, and organisational work, and it emboldened huge numbers of ordinary people to put themselves in the from line despite the threat of legal repercussions and State violence. We personally have learnt from HART when the Anti Bases Campaign organised a 1991 national radical activists' gathering, John Minto was a key figure. And, thankfully, that energy is not lost. HART activists are involved in all manner of other campaigns around the country, such as the Christchurchbased Campaign for People's Sovereignty.

New Zealanders in general can thank HART for changing their minds on South A frica: the progressive movement can thank HART for showing the rest of us how to run a model campaign for nearly a quarter of a century, how LO build a effective national militant organisation, and, most vitally, how to win. If you 'Il forgive the pun, we offer our HARTfelt thanks. And at last, I might be allowed to watch the All Blacks without feeling guilty,

-am Willmott

Bruce McAlpine died of a brain tumour on '.A.'v,,,!,, 21,1992, at me age of73, with Mary beside him. For five months he faced death with great courage and actively planned for Mary's future. funeral was held on December 29th, led by Jim Consedine. The hall of Sumner's Union Church was crowded with people to and hear Mary outline his life, his daughter Christine read a favourite passage from

his son a piece on the piano and

poem that Bruce wrote when his own sister died,

22, lim Anderton ofhis work for the Mer"

Brown about his life an

the Second about his career a about his long association with the NZ

Society.

Friend-

Brought up in Bruce went to Rangiora High School and then to teachers' training college. In his first teaching he met Mary, who was a school dental nurse. Shortly afterward, he refused the draft, and his appeal as a conscientious objector was turned down because it was not "religious" in the formal sense of membership in a church with pacifist principles. His pacifism was self-taught and justified by a humanist philosophy that was anathema to the authorities of the day. He was absolutely convinced that the war could not accomplish anything worthwhile, and therefore he utterly opposed it

Bruce's heroi sm during detention was legendary among the band of conscientious objectors in New Zealand because he refused any cooperation with his warders, thus continually earning hardship. At one point he went on a hunger strike with several others for thirty days to protest their conditions.

When he lc ft prison at the end of the war, he was barred from teaching. He and Mary got married and moved to Northland, where they started fanning a fifty acre block near Kerikeri, and had a family of three children. Farming was difficult. and at one time Bruce was cycling miles each day to earn some money in the local freezing works and orchards. At the same time, he was active in the Social Credit movement, believing that monetary reform was fundamental to a good society.

For ten years they struggled with the land, until Bruce became convinced that his children would suffer if he didn't provide them with a better environment At the age of thirty when most men are well established in their careers, he decided to begin another and went to Dunedin to enter Dental School at the University of Otago. Five years of hard slog followed, Bruce studying, Mary working fulltime as a dental nurse, and both bringing up three little children. So much older than the other students, Bruce became a father figure, and his influence is still remembered affectionately by his younger classmates.

Practice in Christchurch followed graduation, and Bruce and Mary began that active participation in local political activity that has marked their life ever since. The Labour Party then seemed most hopeful to them, and

of I11C Sumner Peace "'~",n"'"'U in the anti-nuclear

movement, theinde-

,,",,""U~","d'" movement as members

was

'Mary went to China with a group of were deeply impressed with the witnessed and they

in the China along with their in1981 , they both went to North Korea

Jim Consedine, and led by Stuart Payne. that country, Bruce neverthefostering betterunderstanding, so joined of the NZ- Democratic Peoples Republic The reforms in China similar ambivalence for him, and the Tiananmen events in 1989 caused him great anguish. Still, continued to give his time and energy to build

'''Ul'''''lIUV with China while making dear his opposition to oppression in any form.

In Bruce

NZ doctors.

Bruce was practising dentistry in Linwood, where many working people found. He gave first rate most other dentists, even cutting low fees for families who couldn't afford

When the government abandoned any

of and embraced the New Right

V'V'''''''':< of Rogernomics, Bruce, Mary and their daughenthusiastically joined Jim Anderton in the that time, Bruce was withdraw-

from practice, and he became an active cam-

for the Alliance from the start. At his funeral

Bruce mightily for devotion, his will-

in long hours canvassing, his effective

! knew him best in the China Society, where it was

to have in a meeting. He

humour to the group, and he talked sense

quiet way, never obtrusive but indicating suewhere the right lay. And he was positive and to

Bruce was a deeply man. He lived his

~''' .. ,~''' .. " rather than them loudly. He never

but sought likeminded people and common goals ~ world peace, understanding,

lVv'"'OJ'''''' a just economic system,

Bruce and were a dedi-

-Murray Horton

In all our years of heaping calumny on anyone that took our fancy, only one aggrieved soul ever took "Watchdog" seriously enough to send us a lawyers 'letter. You can read all 3 pages of it, in number 62, September 1989. (Nls-in case you're worried about your CAFCA membership rendering you liable to libel damages, rest easy. Since 1989, CAFCA has been an incorporated society, which limits our legal liability to what CAFCA actual I y owns. What do the initials SF A mean to you? This was done because of legal moves against us by our old friends, the Overseas Investment Commission. In the end we won. But I digress, uncharacteristically).

Antony Terry was not our average "Watchdog" subscriber. To begin at the beginning, let's quote, from number 61, May 1989.

"CAFCA's attempt to organise an Australasian speaking tour by Philip Agee, CIA agent turned author and activist, had all sorts of interesting spinoffstnot LO mention Agee cancelling his tour), ..

"When news of Agee's impending tour broke (in an extremely unsympathetic piece from the US, using phrases like 'defector', 'traitor' ,'Soviet spy', etc) CAFCA Secretary Murray Horton was surprised to a call at his home from a fruity voiced Englishman who introduced himself as Antony Terry of the London 'Sunday Times'. He explained that he'd recently taken up residence in Wellington. His angle was that he'd been a Parisbased correspondent, and that he'd met Agee when the latter was in the early stages of his European exile (mainly Germany. then Spain when we last heard from him). Terry wanted all the details of Agee's impending visit, and to put on our mailing list.

"Sure enough he sent us a "Watchdog" sub (paid in stamps), with accompanying letters on 'Sunday Times' letterhead ... He also sent us a donation for our Agee tour appeal, and when it was cancelled, declined the refund (as did numerous others). In the

he has had national media attenback-

r',."", 'W"' -x i" (he

he prominence 3..<;

corresoonoent, closel y attending Lange's

conferences" .

We were suspicious from the outset, We checked him out with - who denied any knowledge of him. We

the editors of "Lobster" tile Hull-based magazine specialising in British intelligence (they knew nothing, but later published plenty, from NZ sources). We asked Jonathan Bloch, co-author of "British lntelligence and Covert Action" (reviewed in number 56, June 1987). Bloch replied: "Antony Terry is an 'ex' spook, used to be the' Sunday Times' chap in Paris, wrote cold war dlslnformation - not to be touched with a bargepole. He, I think, worked for British Intelligence during the war, whether he continued thereafter [do not know" (19n /86, unpublished letter).

So we were not surprised that the final issue of"Wel~ Iington Confidential" (December 1988) was entirely devoted to Terry "The Spy Who Stayed Out In the Cold". It was 7 pages long, with 29 references, but essentially it claimed that Terry had been an active agentof'Britishexternal intelligence (MI6) since WWH, and that he was on active duty in Wellington.

After considering the legal ramifications, we did not

reprint or endorse story. We simply referred

"Watchdog" readers Terry did not lake the charges

lying down. His lawyers sent a lengthy denial to "WC", demanding a retraction and apology (al though he didn't actually sue. Coincidentally or not, it was me last ever

issue). really didn't have much choice, as it had

made some errors in story e.g. devoting

much to Terry's "wife", a spy novelist with

links to intelligence. 'The lawyers

were able to correctly state that Terry had divorced her 27 years previously, and hadn't seen her since. Indeed, they claimed his sole reason for a late life shift to Wellington was to near his second wife's daughter, and mat he merely did a bit of writing for the "Sunday

Times" on side.

was still a "Watchdog" subscriber at this stage, so, in the fullness of time, we too received a letter from

Kensington Barristers and Solicitors, of Wel-

lington. absolutely no demands of us- they

didn't ask retractionorapology.nordid ask

But we did, in its entirety, because it ascmaung in its biographical detail on Terry. It f1Ip",rnlh5'i"1 3..<; defamatory "WC's" claim that Terry was

the of a foreign

an active M16

as cover

BUT, the

Naval Intelligence, and after the war, he became Foreign Manager of Mercury News Service, a worldwide group foreign correspondents under the umbrella of Kemsley Newspapers, "Lobster" ] 5 (1988) stated that Kemsley had a policy of hiring MI6 agents as journalists. Terry got his start as a foreign correspondent with Kemsley. The letter stated: "He was posted to Vienna in 1947 by Mr Fleming on a part-time correspondent basis and for a limited period also continued with part-time intelligence work".

It goes on to state: "In 1949 Mr Terry was taken on as a fulltime staff member for the 'Sunday Times' of London and was posted to Berlin. From then on he ceased all intelligence work and for 40 years has never worked for any intelligence organisation". Thatis open to debate. (The lawyers' letter ended our dealings with Terry. After a while, he ceased to be a "Watchdog" subscriber).

Terry was basically a hack journalist, labouring in the service of his ideological masters, Courtesy of the indefatigable Owen Wilkes, we have received several of his early 50s Kemsley pieces ("exclusive in NZ to 'Truth '"), They reflect the views one would expect of a Westernjournalist in West Berlin at the time, and are extrernel y run of the mill journalism. He continued to perpetuate Cold War myths during his long career as a foreign correspondent, and where perpetuation wasn't sufficient, sheer perpetration was resorted to. How else can one explain his extraordinary story entitled: "Red paras in Namibia build-up" C'Sunday Times", 2n / 78). This total fabrication claimed that East German, Polish, Soviet, Cuban, and Angolan forces, under the command of a Soviet general, were poised to invade Namibia (with a minimal role for SW APO, the indigenous liberation movement). It cited "French intelligence" as its source. Remember that invasion? No, neither do we. It never happened, and was never going to. It was straight Cold War disinformation, written by someone with extensive experience of psychological warfare operations.

In his final few years, in Wellington, he wrote the sort of NZ stories you would expect from someone of his background. For example:

"Lange's popularity is on the wane and though he

can still count on his anti-nuclear

his will fall further

the full extent of New L<'''',''''''U

home in 79. The

devoted an extremely gushing obitu-

"At height his distinguished career, Antony Frederic Aime Imbert Terry was a unique investigator of many chilling aspects of the Cold War in Europe, among them espionage and clandestine smuggling of East Germans to the West.He was well equipped for the task: ice-blue eyes, capableof making others flinch; impeccable Gelman and French; a memory retentive of minutiae; tenacity in pursuit of scoundrels, and an interrogatory style - brusque, incisive, relentless - that could make conspirators. women and commissars jump through his hoops. Yet neither his friends nor hi s colleagues ever found Him in his heart.

"Antony Terry was among the last of a peculiarly gallant and fastidious breed of reporter: self-disciplined, self-motivated and, in a sense, creatively remote from head office. Fonner colleagues held him awed esteem; many of them in deep affection" (3/10/92).

the "Dominion" ran a lengthy obituary (6/10/ 92) written by its editor, ideological warhorse Richard Long. Neither of these obituaries made any mention of Terry's past or present work with intelligence. Some of the truth started to come out immediately after his

death. Eye" (9/1 0/92) stated:

"The 'Sunday Times' glowing obituary of Tony Terry ... did not fill in all the details. Terry may have been invaluable to the' Sunday Times' , but he was also pretty useful to MI6. Major' Sunday Times' investigations were routed through Terry in Wellington. He would report back to London after making worldwide inquiries on behalf of his nominal employers.

"When Mordecai Vanunu was handed to the 'Sunday Times', a full brief was sent to Terry in order to get to check with the Australian security intelligence organisation (ASIa) about Vanunu's Australian activities. Terry naturally

the Aussies that Vanunu was trying to peddle

(Mordecai Vanunu is a Moroccan Jew who worked as a technician in Israel's top secret Dimona nuclear

facility. by the treatment of Arabs in

and by itself, he smuggled out data and photos

conclusively proving Dimona to be a nuclear weapons facility. He provided the material to the 'Sunday Times' London, and its publication was one of the major journalistic scoops of the 80s. As for poor Vanunu, he was lured to Rome by Mossad [Israeli intelligence] and kidnapped. He was sentenced to 18 years gaol, and has so far spent 6 years in solitary confinement in an Israeli prison. He is a cause celebre for the international peace movement, including that of Aotearoa).

If, indeed, Terry was responsible for Vanunu's ordeal, that means he was actively assisting British (and Australian and Israeli) intelligence whilst living in "semiretirement" in Wellington. Opinion is by no means unanimous that he was a serving British spy during his Wellington sojourn. "Wellington Pacific Report" 41 (November/December 1992) wrote:

"On reflection, 'WC's" expose fitted the climate of suspicion, even paranoia, that prevailed during the mid 1980s as concern mounted about dirty tricks against Lange's nukebusting policies by rightwing western governments. Antony Terry may well have come to Aotearoa, as his glowing obituary in the 'Times' claimed, to be near his wife's daughter. Yet the correspondent's background and connections make it highly likely he would have retained his long ties to the British intelligence community ... "

He made friends in Wellington, and, of course, he had the impeccable taste to subscribe to "Watchdog". Some people were very positive about him, and he played his cards with some skin. Owen Wilkes quotes him as saying that he didn't sue "WC" because he didn't want to bring the peace movement into disrepute; he thought too highly of Owen didn't buy this argument:

"Personally I think the old bugger was crafty enough to make people think he was nice ... I had to go down to the library and endure a couple of hours of browsing thru old' Truths'. I was amazed at how boring they were. I think this sampling shows that

intelligence this "'''j,,;o;.''''''''' 'journaiism5 0 which could have easily ghosted for him - was probably j ust cover for his

other activities" 30/1 7/12/92).

Antony Terry was one of the many "Watchdog" subscribers that we never actually met, so we can't offer any personal assessment. But the evidence seems extremely convincing - he was an admitted British intelligence agent in the past; his background, connections, occupation, ideological angle, and interest in people like Agee and sectors such as the peace movement - all point to him having an ongoing working relationship with British intelligence, if not actually

IN

NTF

The Business Roundtable and other freelance Rogernauts continue their amusing habit of giving the nation unsolicited advice on subjects that they have no qualifications to pontificate about A minor quibble, surely, But there has always been something missing from their cosy vision of a newly feudalised New Zealand, with the robber barons safely ensconced in their castles. They've succeeded in producing a trul y impressi ve cast of thousands to be the beggars and vagrants so necessary for any authentic medieval crowd scene. They've even arranged for a further 5000 Telecom workers to join those scrabbling in the mud.

But so far they haven't managed to manufacture peasants. The peasantry has always been missing from New Zealand's pakeha history, despite serious attempts to reproduce British class society here. 111e robber barons want to see honest peasants, toiling happily on their rented smallholdings. It makes the view from the castle so much more .. .Saatchi and Saatchi, Unfortunately, New Zealand fanners have always had ideas above their station, and have been so impertinent as to rank among the most successful in the world. This won't do.

AU good knights must go tilting at windmills, and the Roundtable has chosen the producer hoards as its target. "Watchdog" 71 detailed how it and fellow travellers, such as Richard Prebble, already fired

several of the sources listed above. CAFCA a complete set of

the now Confldentlal"; likewise

with [Box 14, Wel-

ling toni; and A venue,

HuH, HUS We maintain an active file on

British intelligence. We haven't had dealings with Philip for years, but he is still doing excellent work. We particularly recommend his article: "Tracking Covert Actions Into The Future", in "Covert Aclion Information Bulletin" FaU 1992 [1500 Massachusetts Avenue, NW, #732, Washington DC 20005, USA). CAFCA also holds a full set of "CAIB").

LI

easan

the opening salvos. And had attracted some pretty fierce return fire, from organisations that are major multinationals in their own right. As mentioned in this issue (see "Blinded By Bullshit"), noted rabies victim Sir Roger Douglas is currently the darling disaffected kiwifruit growers, and the Big Bananas of the fruit business, such as Apple Fields. He has coauthored a report entitled "Options for Kiwifruit: An Industry in Crisis", whi ch attacks the Ki wi fruit Marketing Board. We wonder by what right a failed pig fanner is qualified to comment on anything agricultural.

Roundtable itself a report, written by

Denis Hussey, attacking all producer boards. It advocates axing all agricultural regulations and corporatising the boards. But calls for slashing changes in agriculture cuts pretty close to the bone with a farmer Government whose bedrock constituency is the nation's cockies, So the brazen Hussey was received with considerable scepticism. His report was given an in depth examination by Brenden Bums, in the "Press" ("Producer hoards under s 3 Some quotes from that feature:

H ... (Hussey) was asked to point to a dairy farmer

or apple grower anywhere in world who was

better off under a free for all than their New

Zealand counterparts. "I think your question is not

Watchdog

a Minister had deregulation, asking were there any rich banana growers in Ecuador?

to the was that Ecuadorean

UU\J,,",,_''', growing for a giant brand like were rich compared to some of theircompatriots. 'The important question is whether the free market system Mr Hussey prewould make New Zealand fanners rich - and by what measure, Certainly none would want to be comfortably off by the Third World standards of Ecuador.;

".", (Mr Hussey) suggested that foreign control of the boards could be prevented by the usc of golden shares or other measures, although dearly he has no ditlkulties with foreign takeovers. This is perhaps the most controversial aspect of the report. The producer boards were established to ensure farmers and growers had some control on the goods beyond the farm gate ...

" ... The Apple and Pear Board chairman, John McClisldc, has cautioned growers against putting the chainsaw through trees because of the present fashion for newer varieties. If Chiquita were the buyer! it would not care. If brae burns are getting high prices, it would want them by the shipload. If suddenly these apples were replaced as the premium variety by granny smiths, then Chiquita would source these fruits wherever it New Zealand's braeburn growers

'Would be

entity to survive. When the needs more competition than that, free market does not provide a comnreeensi answer ... Aside from the fact that it exist.'> solely to look after the interests of its growers, who can really argue against the success of an organisation

like the Apple and Pear Board ... 'l

", .. The Acting Agriculture Minister, Denis Marshall, reinforced the Government's message that it will not dance to the wishes of the Business Roundtable, at least on this issue.i. Mr Marshall was not the only person to note with irony the report's subtitle, 'Reality versus Doctrine'. Certainly. producer boards could face up to some realities about their structures and price payment systems, but adopting a doctrinaire free market model is no answer. Ask any Ecuadorean banana grower".

So our advice to the robber ensconced in their castles. Stick to emptying your slop buckets on the beggars, the halt, the lame, and the blind. They're easier targets. Mess with the cockles at your peril. You ']1 find out that that peasants really are revolting.

L

No, not the motley crew of Colombian fat boys with a penchant for white powders to dear the sinuses, and carbombs Lo clear the streets. We're talking about the real drug barons the pharmaceutical multinationals. That's where we'll find the real money and power.

"Watchdog" 70 reported how the Government was pressured by drug multinationals, including British giant Glaxo, into announcing an amendment to the 1953 Patents Act, to prohibit local companies from replicating drugs patented by the multinationals. One of Glaxo's lobbyists was former National Party leader. Jim McLay.

The drug barons occupy a privileged position under New Zealand patent laws. This was made public by Jeffrey Douglas, of Douglas Pharmaceuticals, which is now the country's third biggest drug manufacturer (after Glaxo, and Astra, of Sweden). Douglas is a New Zealand-owned private company, founded in 1967 by Jeffrey's father, Graeme. The company and its disadvantaged position under NZ patent laws were the subject of a "Press" business feature 00/2/93).

"New Zealand's patent laws hamper the country's only pharmaceutical manufacturer as it builds its export sales ...

Douglas Pharmaceuticals also does contract manufacturing formany multinational companies. About 10 multinationals have closed their manufacturing plants and retrenched to Australia since the Closer Economic Relations agreement and New Zealand's abolition of subsidies ...

" ... Patent laws govern the pharmaceutical industry. Patents allow companies to recover research and development costs. They also inhibit other

companies from the the patent is in force ... New Zealand has a 16 year expiry term for patents. but on application they can be renewed for another ] 0 years. Competitor countries such as Australia and Britain have a 20 year maximum protection, Jeffrey Douglas says.

"'New Zealand is protecting the monopolies of multinationals', Mr Douglas says. 'The term prevents us from introducing opposition brands to New Zealand and inhibits our export potential'. Australian competitors can develop a product line while Douglas is delayed for up to 6 years. Mr Douglas, senior, has tried for more than a decade to have the New Zealand patent law reviewed and made comparable to that of Australia and Britain.

"A spokesman for the Patent Office in Wellington said the 10 year extension was not automatic. It was granted if an applicant could show that it was needed to recoup development costs. Patent extensions for up to seven and a half years were more likely than for 10 years. Mr Mark Steel, manager of the intellectual property section of the Ministry of Commerce, said that industrial property had been under review for about two years. Industrial property is intellectual property except copyright, and covers patents ... Any changes to the law would depend on the legislative programme, but were likely within two years ... "

So there is no suggestion of any mythical "level playing field" for the drug barons. Quite the opposite. They prefer monopolies and ensure that compliant governments enforce them by law. It's so much cleaner than car bombs.

_______________________________ ~_w_

60

I ndians are not

pigs for nuclear

the Navajo

1950's. . Thunder

Potowatomi tribal chalrrnan, James

If We cannot have OWl' land» We Kalagan spokesman, Uray Balqli

Moody

Watchdog

CONFE.RENCE

The first Peace Power and Politics Conference was held in 1968 at the height of the Vietnam War. It represented a major turning point in thinking at that time.

Exactly twenty five years later, the conference is happening again, bringing together a wide range of people interested in positive, progressive change.

This conference will challenge old thinking and offer a radical vision for New Zealand after ANZUS. Through locaf and overseas speakers, workshops, ftlms and more it will provide an exciting opportunity to develop and enlarge on the strategies that will set New Zealand's foreign policy agenda over the coming years.

Queen's Birthday Weekend, 4-7 June 1993,

Wellington College of Education Te Whanau 0 AI(o Pai Ki Upoko 0 Te Ike

Further information to follow: Enquiries to: Peace, Power & Politics Organising , Committee, P,O,Box 9314, Wellington, Aotearoa. Phone and fax: (04) 382 8129

Watchdog

Page 62