Some Import Cuts Necessary

Press, Volume CVI, Issue 31333, 1 April 1967, Page 3

Some Import Cuts Necessary

“There was no doubt that difficult times lay ahead for many manufacturers and their staffs, but the Canterbury Manufacturers’ Association realised that the deterioration in New Zealand’s overseas funds made some types of import cuts necessary,” said the association’s president (Mr C. W. Mace) yesterday. “As a nation, we must continue to make every endeavour to increase overseas earnings,” he said. “During the last few years manuturers have more than doubled the exports of New Zealand manufactured goods, which at present exceed £2O million. Industry will, as will all sectors, have to make even greater efforts to export. In fact, Canterbury will have

a strong representation on the trade mission to Southeast Asia later this year. “We note in the schedule that the export-incentive scheme is under revision, and manufacturers hope that where necessary this will place export incentives on the same basis as in other exporting countries with which we are competing.” Stock Conservation Mr Mace said that manufacturers were already trying to conserve stocks of imported raw materials, which in many cases were unbalanced, and already had had ■ to reduce or abolish overtime ■ and cut back in staff. : Commenting on suggestions ; that stocks of manufacturers’ - raw materials were higher in i comparison with previous ' years, Mr Mace said that, in , monetary value, this was corI rect. However, stocks as a I percentage of production : were dropping considerably. “Without taking into ac- ! count overseas price increases

of imported raw materials, this 20 per cent cut and the present 15 per cent cut means that since July 1 last year many manufacturers have had a 32 per cent reduction in their imported raw materials," he said. “40 Per Cent Cut” "Taking into account overseas price increases in raw materials, in many items this means that the amount of raw materials manufacturers can import will be reduced 40 per cent in a year. This 40 per cent is a striking indication of the major prob-

lems manufacturers will face later this year. “The position of overseas funds makes it all the more necessary for a joint Govern-ment-industry study to be made to determine where local manufacturers can encourage a greater use of locally made equipment, especially for New Zealand defence and the heavy engineering industry. “The Government, in association with industry, should form an advisory committee to investigate the possibility of greater use of locally-made defence supplies.”