MR MARSHALL HAS ‘DISMAYED9 INDUSTRY

Press, Volume CVI, Issue 31320, 16 March 1967, Page 18

MR MARSHALL HAS ‘DISMAYED 9 INDUSTRY

(New Zealand Press Association) WELLINGTON, March 15. “Manufacturers are dismayed at the statement by the Minister of Industries and Commerce (Mr Marshall) that they can expect cuts of up to 20 per cent in the 1967-68 import licensing schedule”, said the president of the New Zealand Manufacturers’ Federation, Mr H. W. Reed, in a supplied statement today.

“Industry has borne the brant of the earlier dampening down measures taken by the Government through the 15 per cent cut in licences for the current year,” said Mr Reed.

“Additional cuts to the extent of 20 per cent must have further adversp effects on costs, because overheads must be charged against the lower level of production.” He said that continuity of

production could also be threatened. “The Minister said that the value of manufacturers’ stocks was higher at the end of December than it was a year before, but this does not necessarily reflect increased volume of stocks. “Rising freight charges are one extra cost which must be reflected in a higher value of stocks without being accompanied by an increase in volume. “In addition, the level of stocks is not uniform through all industries.” Some might be up, but others were down, said Mr Reed. Next Period “The Minister referred to the value of material stocks at the middle of the import licensing year. “While they may have been holding up satisfactorily the manufacturers’ federation is concerned about the move-

ment during the remainder of the licensing year and particularly about what the position could be at the end of June, when the new licensing period will start,” said Mr Reed.