EXPORTS COSTLY

Press, Volume CIV, Issue 30846, 3 September 1965, Page 12

EXPORTS COSTLY

Tax Relief Urged (N.Z. Press Association ‘ AUCKLAND. Sept. 1 Export incentives nro’id-'d 1 by the Government did not far enough, the chairman of D. McL. Wallace. Ltd . an Auckland manufacturi"? engineer and exporter, to'd shareholders at the annual meeting yesterday. Mr D. McL. Wallace said that the company had found it could get export orders for patented products or those with novel features in spite of New Zealand’s physical disadvantages. These disadvantages included lack of raw materials and distance from markets. 1 However, the company had to contend with shortages created by import licensing and lack of manpower. It was accepted that shortages always increased costs and selling prices.

j He conservatively estimated I that import licensing and 'labour shortage increased the costs of the company’s products by between 5 and 10 per jeent. These costs were largely I recoverable in the sellers' market which existed in New Zealand, but not from goods i for export. I “I contend that the Government should recognise this position by granting continuing support in tax concessions to bridge this gap and so encourage exporters to maintain their export efforts.” be added.