Eric Watson quits NZ, but not NZ business

By NZPA

Thursday 5th September 2002

Entrepreneur Eric Watson has announced he plans to move to Britain to chase further business opportunities there and in Europe.

Mr Watson, who chairs Cullen Investments, has been living in Europe since May.

"I've identified a number of exciting commercial opportunities in the UK and Europe and so it makes strategic sense to be based there," he said in a statement.

Mr Watson said while he would be spending most of his time outside New Zealand, his business investments including Cullen would remain here.

Cullen Investments holds major stakes in companies including Pacific Retail Group and Eldercare, but Mr Watson is most well known for his controlling stake in the Vodafone Warriors.

He said he was positive about New Zealand and believed it could "look forward to a long period of sustained economic prosperity".

Mr Watson made his fortune largely by creating the Blue Star Group, which included the Whitcoulls book store chain , which he bought from another high flyer, Graeme Hart.

Blue Star was sold to US listed company US Office Products in 1996 .

On a personal note, he confirmed that his wife Nicky, whom he has been separated from since last year, will not be accompanying him to Britain. His son is going to school in London.

ACT leader Richard Prebble said Mr Watson's departure was a serious loss.

"Losing these business entrepreneurs matters because they are job creators and have a proven track record in adding to the nation's wealth. While no doubt Mr Watson will continue to invest in New Zealand, it is also obvious that his emphasis will move to Europe, to their gain and our loss."

He said New Zealand's tax system treated entrepreneurs who had expanded beyond its shores very harshly.

"We can't afford to have the country's most successful job creators becoming tax exiles."

Mr Prebble called for another look at a recommendation in the Government's McLeod Tax Review, which identified the loss of the country's top entrepreneurs as a major issue, that there ought to be a cap on the amount of tax any one individual had to pay.

Such a move would "make New Zealand a very attractive place for the Eric Watsons to live".

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