Difficulties Seen In Free Trade Across Tasman

Press, Volume CIII, Issue 30497, 20 July 1964, Page 7

Difficulties Seen In Free Trade Across Tasman

Under present conditions a free trade area between Australia and New Zealand could create difficulties for manufacturers in the Dominion, says the president of the Canterbury Manufacturers’ Association (Mr R. G. Pearee) in his annual report to be presented at the association’s annual meeting next Tuesday. Mr Pearce says that Australian manufacturers pay a maximum tax rate of 6s 6d in the £, compared with the New Zealand rate of 10s in the £. New Zealand manufacturers are also handicapped by import licensing on raw materials and machinery, both these items being free of import licensing in Australia. Mr Pearce says the association has an undertaking from the Government that no decision will be made until

each industry concerned has an opportunity of discussing its position fully. “We are of the opinion that the New Zealand Government will only recommend a freeing of trade barriers if substantial advantage to industry appears possible.” On the subject of export incentives, Mr Pearce says the report on “Criteria for Industrial Development in New Zealand” prepared .by the Tariff and Development Board, was one of the most important documents to be considered by the association’s council for a number of years. For the sound economic industrial development of the Dominion, the association believes there should be some general agreement reached by Parliament. Industrial Development

On the subject of South Island industrial development, Mr Pearce says that although the value of output in Canterbury had Increased in the last 10 years from £sBm to £lo2m, and the number of persons employed by about 6000, the association is concerned about the growth of the South Island. “An industrial promotion committee was formed earlier this year to investigate this problem and although this complex subject is still under investigation, it is obvious the major factors retarding our growth in the south are freight anomalies and insufficient inward and outward shipping.” These matters, he said, would soon be taken up by the association with the Minisof Railways (Mr McAlpine). Mr Pearce says that power charges are another problem affecting industry, in comparison with charges in the North Island. “We realise that in the majority of cases power charges are only a small percentage of over-all manufacturing costs, but there are some major companies in Christchurch paying £25,000 a year in elec-

tric power charges and when in Auckland power charges for some industries are 40 per cent lower this is not a small item.”

“If the Government can use its powers to equate growth, it will be in toe interests of the whole of New Zealand; the lopsided development of any country is not good,” he said. The formation of a Council of Industrial Design has been favoured by the association for several years, says Mr Pearce, yet it disappointed that the Government had decided that an Industrial Design Institute should be under the control of the Department of- Industries and Commerce in toe interim. The association favours a fully independent design body. Mr Pearce says Government spending during toe year just ended . was at a record £538.5m. Manufacturers recognise the magnitude of the calls being made on the Government to provide more and more facilities, but there must be more firm recognition, both by toe public and the Government, of toe necessity of restraint