Sir Lawrence Govan

Dorothy – 02/06/00

In 1984 Sir Lawrence Govan was knighted for his services to industry and the community. This honour will no longer be awarded in New Zealand so I decided to write up the career of one of our last knights. It may be read as an outline of Lawrie’s career or of the opportunities and difficulties facing manufacturers in New Zealand since World War I.

Lawrie’s father founds Lichfield NZ Ltd Lawrie’s hard working father was employed at the Kaiapoi Woollen Company and in 1916 as a sideline secured a sub contract to produce shirts for the soldiers in Egypt. He bought four machines, organised staff, and as the enterprise grew took in partners, one of whom, Harry Aston, remained with the business which eventually became Lichfield NZ Ltd. At first the work poured in but once the extra post war demand was satisfied the business was hard hit during a short sharp slump in 1921 – a post war pattern which was repeated in 1950.

Lawrie’s childhood Lawrie’s story is one of constant work and involvement with people. The youngest in the family with three older sisters he grew up in a busy house with a dog, a vegetable garden and a back yard – and plenty of laughter, but not plenty of money. The family always walked to church on Sundays, and attended St Martin’s and later St Ninian’s Presbyterian churches.

After secondary school a job at Lichfield He went to Christchurch Boys’ High School and worked unpaid in the business after school and in the holidays. After two years at CBHS he left to work at Lichfield at the end of 1933. This was during the slump. He recalls the headmaster, Mr Lancaster, telling him he was the luckiest boy in the school because he had a job to go to. There were over seventy staff employed at this time. Lawrie started at the bottom sweeping floors, attending to the boiler, learning how to use every machine and, being what Lawrie calls a “lay” mechanic, learning to repair them. He went to night school four nights a week to learn book-keeping, business methods, salesmanship and pattern drafting.

“Spending four years in shirt production and warehouse work was very helpful in establishing a basic knowledge of manufacturing and stock keeping. Times were tough and nothing was wasted. Fabric was worth from 4 cents to 10 cents per yard, 36″ wide. Top quality Sea Island cotton was up to 15 cents per yard. The basic training and tough economic conditions proved a good training ground,” said Lawrie.

Promotion to salesman In 1937 he was moved into the warehouse, and at nineteen was given his own sales area with a company car, a 1937 Chevrolet. “I grew a moustache to try to look older, and wore spats and a Homburg hat – I had to wear a hat or the shops I visited would try to sell me one,” he recalls. His district was north of Wellington on the east coast as far north as Ruatoria, and then extended to include the same area to the west. In 1939 he drove 50,000 miles on shingle roads and stayed at private hotels where possible as these offered cheaper accommodation at 12/- a night for dinner, bed and breakfast.

War service Next came war service in Egypt and Italy. He was a gunner and wireless operator in the 18th Armoured Regiment in Sherman Tanks. He received a shrapnel wound in his right shoulder which fortunately left no permanent damage. He was promoted to Corporal and Sergeant and in 1944 was commissioned, so in that sense was a successful soldier. When asked by General Freyberg what was his ambition in the army Lawrie replied without hesitation, “To get out of it, Sir.” However as Lawrie puts it, “The War was a great experience – if a dangerous one, and it taught one the basic necessities of life – to be adequately fed, warm and with dry shelter – to have more is a luxury. One’s soldier friends knew you ‘warts and all’. Many of the friendships last to this day.”

A great compensation for the years serving overseas was that during that time, in an Officers Club at Bari in Southern Italy, Lawrie met his future wife Claire, a nursing sister from Newfoundland, serving in the South African Army.


Lawrie and Claire in uniform
Photo source Sir Lawrence Govan


Back to Lichfield After the war and back working at Lichfield Lawrie was given the chance to go overseas with Tom Bisman, Production Manager, and buy new plant and machinery. He agreed on condition that the trip should include a week’s leave in Newfoundland where he could visit Claire.

Flying to San Francisco – a four day flight What a slow trip it was compared to travel today! Lawrie describes the journey. “Tom and I travelled to Wellington on the overnight ferry, and to Auckland on the train, as there were no internal flights in those days. Pan Am had only one plane flying Auckland to San Francisco return, a DC4. This meant a service every eight days.

Lawrie in front of the DC4

Lawrie in front of the DC4
Photo source Sir Lawrence Govan

“The plan was Day 1 – Auckland to Fiji 9.5 hours. Day 2 – Fiji to Canton Atoll 8.5 hours. Day 3 – Canton Atoll to Honolulu. Day 4 Honolulu to San Francisco.

“We flew 10,000 ft – no pressurisation and frequently through weather – not above it. From San Francisco to New York, 2 days in a DC3. Few airports had landing lights so there was little night flying.

“Crew and passengers went to bed for the night. In Fiji the airport provided accommodation.

“On Canton Atoll there were two tents – girls in one, boys in the other, with outdoor benches for ablution. The atoll was so narrow that one wing was over the sea and the other over the lagoon. Forty four gallons of aircraft fuel was hand-pumped up into the plane.

“Honolulu brought the luxury of a hotel.”

Marriage to Claire The negotiations for the new plant and machinery were successful

Lawrie and Claire on their wedding day

Lawrie and Claire on their wedding day
Photo source Sir Lawrence Govan

and after
the visit to Newfoundland
Lawrie brought Claire back to New Zealand and they were married in Christchurch – the beginning of over fifty years
together and family life with three daughters and a son.

Claire was practical, supportive and easy to live with. She had a great sense of humour and was patient. Lawrie’s job demanded many absences from home and Claire held the fort as her part of the family effort. She took responsibility in her stride.

Work at Lichfield In the business Lawrie had to work hard. After the war there was such a demand for shirts that the business was concerned with allocating goods rather than selling them. He devoted a lot of his time to training the 250 staff to speed production which rose to 1000 dozen shirts and other garments each week.

The workroom at Lichfield NZ Ltd

The workroom at Lichfield NZ Ltd Photo source Sir Lawrence Govan

A regulated economy All New Zealand industry was protected by import controls which prohibited importation of any goods which were – or could be – produced in New Zealand.

Lawrie explains, “This lack of competition made New Zealand-wide wage increases unimportant initially. However, regular high wage increases resulted in substantially increased costs for the farming industry which was New Zealand’s main earner of overseas funds.

“Farmers’ output became uncompetitive in overseas markets and their profits disappeared. The Government introduced Supplementary Minimum Payments to farmers. This completed the circle. New Zealand had protected, regulated and subsidised itself to death!

“It took forty six years to prove conclusively that a protected economy won’t work. The theory is great, but…..”

Problems for garment manufacturers Garment manufacturers encountered two major problems in the two decades that followed World War 2.

Temporary slump in the industry Because of wartime and post-war shortages the firm had to order woven cotton fabrics (mainly from the United Kingdom) well in advance, for future delivery, so that continuity of supply was guaranteed to keep production staff fully employed. The shortages were overcome by 1950 and prices fell 70% over a four week period. Lawrie recalls, “We had a year’s supply on order at high prices! Many garment manufacturers went bankrupt. By mutual consent some fabrics were cancelled and fees paid. Some prices were negotiated down. Shipments were delayed. In all cases payments were delayed, three, six or nine months. Eventually after twenty four months we emerged – bloody but unbowed!”

Proposed New Zealand cotton mill The next hurdle was in 1960/1. The Labour Government had made an agreement with an English firm to open a cotton mill in Nelson with a promise of 80% of the market in New Zealand for any type of cotton clothing fabric they chose to produce. This meant that there would be drastically reduced choice for the producers of fashion goods who HAD to buy 80% of their fabrics from this one source.

Lawrie was president of the NZ Textile and Garment Federation and led the anti-cotton mill faction. The National Party won the 1960 election and reconfirmed the agreement. The opponents of the agreement spent ten weeks in Wellington lobbying the Government against the planned mill. They secured the support of the twenty six main newspapers and in the end the Government buckled under the political pressure and paid compensation to the firm that had built the mill. Lawrie acknowledges the valuable support of Will Perry at this time and in the years that followed.

Involvement in this struggle developed Lawrie’s interest in politics and he has been a keen supporter of the National Party ever since.

Appointments in the finance industry Lawrie’s success in the cotton mill fight brought him recognition in the industry and subsequently seats on the boards of a number of companies.

From 1958 to 1963 he was a director of Cash Order Purchases Ltd, a forerunner to finance companies. People wanting to make a purchase in a shop could take information about the product and cost to COP Ltd and get an order to purchase, take that back to the retailer and buy the product. Repayment with interest was made to COP Ltd which managed purchases on credit for companies which at that time did not organised their own time payment credit systems.

Then followed other appointments including Broadlands Finance Company 1963-1980, Broadbank Ltd (NZ’s first and largest Merchant Bank) 1972-1984, Canterbury Building Society 1962-1980, United Building Society (Chairman) 1980-1989, United Bank (Chairman) 1989, Director Reserve Bank of New Zealand 1972-1984, Superannuation Investments Ltd 1972-1999.

Lawrie describes the twelve years when he was a Director of the Reserve Bank of New Zealand as “a most interesting, educational and enthralling experience”, as it would be for a man who has always read economics as a hobby!

Continued involvement with Lichfield He continued to give first priority to his work for Lichfield which involved two world trips yearly until his retirement in 1979. These trips took him to fairs for menswear and ladieswear in Dusseldorf, Cologne, Paris, Birmingham, Montreal, San Diego, Los Angeles, and San Francisco, and a machinery fair, The Bobbin Show, at Atlanta Georgia. He established a group of friendly shirt/blouse manufacturers around the world and they swapped ideas and frequently bought fabrics jointly.

Changing sources of cotton fabrics with Japan entering the market Before World War 2 as New Zealand had been a British colony manufacturers automatically sourced cotton fabrics from Manchester in the United Kingdom. In stores the department that sold cotton goods was called the Manchester department. Europe did produce these fabrics also, but with travel and language problems Manchester was the preferred supplier. The U.S.A. produced good fabrics, but did little or no exporting.

China, Japan, Asia and India produced “crude fabrics – roughish and goodwearing”, but no “fine fashion fabrics”.

However after the World War 2 Japan was financed by the USA to produce high quality cotton poplins, mainly on U.S.A. and Swiss looms.

During Japan’s post-war reconstruction efforts wages were low, productivity was high, and quality control was very effective. By 1950 Japan was a force in the fine cotton poplin market and because of the quality and price Lichfield had to change its suppliers and buy from Japan.

Asian countries with cheaper wages enter the fine fabric market. As Japan’s standard of living and wage scales increased by degrees they started spinning and weaving plants in South Korea, Taiwan, Hong Kong, Indonesia, the Philippines, Singapore, etc. Initially these factories produced rough fabrics, but soon started producing fine fabrics. Today Japan produces little in the way of fine fabrics and China and other Asian countries do most of the trade.

Farming venture As a retirement “hobby” he and Claire developed an 18 acre hobby farm growing kiwifruit in the Nelson area.

Community and church work Lawrie has devoted a generous amount of his time to the church and the community. After working on the Board of Managers for some years he became an elder at St Ninian’s Presbyterian Church in 1952. He has served on Presbyterian Assembly Committees for New Life – Stewardship, Publicity, and Finance and was a Church Property Trustee for sixteen years.

He is President of the Canterbury Medical Research Foundation, was a Trustee of the New Zealand Drug Foundation, and has served on the Health Care of the Elderly Education Trust. He has been a member of the Christchurch Rotary Club since 1949. He chaired the Regional Development Council from 1984 to 1987.

In recognition of “Services to Industry and the Community” Lawrie was made a Knight Bachelor in 1984.

Sir Lawrence Govan receives his knighthood from the Governor-General, Sir David Beattie.

Sir Lawrence Govan receives his knighthood from the Governor-General, Sir David Beattie. Photo source Sir Lawrence Govan

Claire, like Lawrie, was enthusiastic about working to help people in need and for her work with the Canterbury Save the Children Fund she was presented with a Distinguished Service Award in 1982. In 1995 both Claire and Lawrie were made Honorary Life Members of SCF. Claire was a loving and supportive wife and mother, and since her death in 1998 she has been deeply missed by Lawrie, the family and a wide circle of friends.

Looking back Lawrie now describes himself as an octogenarian. His continued involvement in the community and his keen interest in what is happening in industry, finance and politics mean that he can give a clear overview of how the policies of successive governments have impacted upon New Zealand industry since he began working at Lichfield NZ until it ceased to be involved in manufacturing in the early 1990s.

Watch for a coming article in NZine giving Sir Lawrence Govan’s overview of the failure of the regulated economy.