'Expansion Plans Upset By Labour Shortage’

Press, Volume CVI, Issue 31215, 12 November 1966, Page 21

'Expansion Plans Upset By Labour Shortage’

The president of the Canterbury Manufacturers’ Association (Mr C. W. Mace) said it was disappointing that the report of the Monetary and Economic Council on “increased Immigration and the Economy” did not refer to the invisible costs caused by the labour shortage. “There is no doubt that the present labour shortage often causes manufacturers to shy at expansion plans,” said Mr Mace. “I consider the report should have covered the effect of labour shortage on long-term development and production costs ” Mr Mace said the August issue of the Labour and Employment Gazette said that the labour turn-over was costing £3O million a year. The journal quoted a survey showing the average cost as £7O a termination, which often resulted in increased production costs, he said. Skilled tradesmen were available in the United Kingdom, and manufacturers hoped that the Government would allow a greater number

’to enter New Zealand as assisted immigrants, he said. Overseas newspaper reports indicated that British tradesmen were showing increasing interest in migrating to New Zealand. Mr Mace said that if the Government assisted industry by allowing these people to enter as additional assisted immigrants, it would be in line wtih the recommendation of the Monetary and Economic Council, which had concluded that immigration ought to be used to meet persisting shortages of skilled labour.

Mr Mace said that although the report said it was inappropriate to increase general immigration in the present circumstances, it did not rule out future increases under other circumstances, such as improvement in the external and internal situation. “I believe that we should have confidence in New Zealand’s ability to overcome its present economic difficulties, and at the same time put into immediate operation plans for increased immigration,” he said.

“It would be a completely negative attitude to keep the present restrictions on the number of assisted immigrants till our economic position improved. It would take a considerable time for a realistic immigration programme to take effect,” Mr Mace said.

Mr Mace suggested greater immigration than ever for a two-year trial. This should be administered in conjunction with greater economic forecasting and planning.