Practicable Incentives For Exporters Sought

Press, Volume CII, Issue 30045, 1 February 1963, Page 10

Practicable Incentives For Exporters Sought

(New Zealand Press Association)

WELLINGTON, January 31.

The Monetary and Economic Council will be asked to recommend export incentives practicable and equitable to all concerned.

The Prime Minister (Mr Holyoake) said today that export incentives such as those recommended by the council in the last report to the Government, which will be published this week, were studied when the last Budget was being prepared. “But we were unable to formulate an acceptable method for applying diem,” Mr Holyoake said in a statement commenting on the report.

“The Trade Promotion Council has examined similar proposals, but has not felt able to recommend them.”

“I propose to invite the council to study this proposal more fully with the objective of presenting the Government with some proposals in detail which will be both practicable and equitable to all concerned,” said Mr Holyoake. The council’s report said complementary tax deductions as incentives should be allowed firms increasing their export earnings, and company and personal tax concessions winch would help increase productivity should also be considered. Finance for some of these concessions could come from a tax on spending of overseas exchange. Mr Holyoake said the council’s proposals on taxation would be studied carefully. He said he appreciated the council’s concern about the inflationary pressures and balance of payments difficulties which had developed in previous election years. Ln reply to the suggestion that the Government should declare its determination to avoid inflationary pressure and payments difficulties, he

could best point to the National Party’s campaign policy in the 1960 election. “No proposals or promises were made then which would lead to undue inflation in our economy,” he said. “There is no justification for any fear that we might do so this year. “The policies that have been followed by the Government have given the greatest possible stability to the economy and have enabled business people and others' to operate with confidence.

“We will review taxation and make whatever adjustments may be possible and to the best of our ability we will avoid inflationary excesses.”

Mr Holyoake said a number of the council's recommendations reflected the policy of the Government and had been followed during its term of office. “I am pleased the council’s report has substantially endorsed the steady-does-it policy which the Government has followed over the past two years,” he said.