Concern At High Rate Of TV Set Production

Press, Volume CIII, Issue 30576, 20 October 1964, Page 7

Concern At High Rate Of TV Set Production

(New Zealand Preu Association) WAIRAKEI, October 19. The Minister of Customs (Mr Shelton) told radio and television manufacturers here today that he was “somewhat concerned” at the high rate of production of television sets at the present time and at the expressed desire of the industry to produce 90,000 sets in the July-September period.

Opening the annual conference of the Radio and Television Manufacturers’ Federation, he said the Government was happy for the industry to produce as many sets as it could within the following limits:—

No more funds provision can be made in addition to that now provided for the industry; No further provision can be made for the importation of picture tubes. Adequate stocks of tubes are held at the end of this licensing period. Mr Shelton said domestic tube-makers should produce 150,000 tubes in 1964-5. Together with the stock of 3000 tubes which were held at the beginning of the licensing year and the 9000 tubes imfrom setmakers’ component from -setmakers’ component licences, there should be a total availability of 162,000 tabes.

Mr Shelton said within this total, provision must of course be made for service and guarantee replacements, as well as reasonably substantial stocks at June 30, 1965. “The present rate of production means that there will have to be a slow-down during this quarter and there must be a fairly heavy cutback in the following six months,” he said.

“I appreciate your desire to avoid a sudden, drastic reduction in production, so I wish to make the position quite clear at this stage.”

Market Demand Mr Shelton said the latest projections of market demand, together with the increasing number of sets in the pipeline (49,000 sets at the end of September) might be the cause of some concern to the industry, as they were to the Government. Mr Shelton said at the beginning of this licensing period the Government was faced with the position of a continuing shortage of exchange and he had to inform manufacturers that provision in many lines would amount to no more than 90 per cent of the previous year’s import licences. “In spite of this unpalatable decision the provision for the manufacture of domestic television tubes was increased from a 1963-64 pro-

duction of 104,000 to 150,000," he said.

The position at present was that the licence provision for the radio and television industry was at the same level as for 1963-64. Mr Shelton said the Government’s objectives in aiding the development of the television industry were being progressively achieved. There was no shortage of sets for retail sale. No Competition Mr Shelton said the industry had to meet almost no

competition from Imports, unlike many of New Zealand’s long-established industries, and it therefore had a responsibility to produce what the consumer wanted at a reasonable price. He said colour television would seem to be some way off yet Mr Shelton made a plea for further attention to design, not only in its technical applications, but also in the consideration of radio and television sets as articles of furniture with increasing prominence in the home.