CANTERBURY COMMENT

Press, Volume CVII, Issue 31383, 31 May 1967, Page 3

CANTERBURY COMMENT

“The Government’s reasons for declining to introduce differential freight rates misrepresent the association’s case for more balanced economic growth,” said the director of the Canterbury Manufacturers’ Association (Mr R. T. Alston) yesterday.

“It is extremely disappointing to read Mr Marshall’s statement that the Government has declined the introduction of differential freight rates as a solution to the problems of regional development,” he said.

is significant that the Minister in bis statement makes no reference to the costs, which were revealed in the department’s survey. “It is also well known that at present a number of companies have obtained concessionary freight rates, but unfortunately in the main, these are North Island based companies.

“To put the facts in the correct perspective, I would point out that the association has often emphasised that differential freight rates are only one of a number of incentives required for balanced economic growth in New Zealand.

“Mr Marshall’s statement gives no valid reason for declining to introduce differential freight rates. Basically, it reveals that the Government’s outlook on balanced economic growth is completely out of step with those of some progressive governments of overseas nations.

“Mr Marshall has detailed a number of factors affecting regional development including land values and labour costs, and says the problems of development are not confined to the South Island. “I would emphasise that these points mentioned by Mr Marshall have been made by the association on many occasions. Where we differ, is that we believe that differential freight rates are one of the important factors in any programme towards the development of balanced economic growth. The Department of Industries and Commerce’s survey, which showed the disadvantage of a South Island location as being on the average of 27 per cent in freight costs is positive proof that freight costs are hindering South Island development. “We have other evidence of how freight costs are affecting individual companies and it

“Only 1200 miles across the Tasman, in New South Wales, the Government’s first point in its decentralisation policy is rail freight concessions, which in some industries range between 40-60 per cent of normal freight charges. FREE TRADE “The Government, Mr Marshall in particular, continually refers to free trade between our two countries, but will not give New Zealand industries similar incentives to those of their Australian counterparts. • “Only this morning I again referred to Mr Marshall’s opening address to last year’s Seminar on Decentralisation. It was a good address setting out the problems of unbalanced economic growth. But in the light of today’s announcement it appears the Government is only giving this matter lip service with one or two minor concessions.

“For example, the West Coast has a meagre taxation investment incentive and the Government has stabilised the number of South Island seats in Parliament.

“NEGATIVE; OUTLOOK” “We believe the stabilisation of the number of South Island seats in Parliament reflected a negative outlook; rather it would have been far better to have given the South Island and some parts of the North Island the necessary incentives, including differential freight rates to bring our growth rates into line with other parts of New Zealand. “This association, and I am sure other organisations, will continue to press for more balanced growth. While the Government at present will not assist us with one of the major problems, freight rates, there are members of Parliament, from both political parties, and from Auckland, who recognise the need for more balanced growth, including freight incentives. “As the increasing problem of geographically unbalanced distribution of population thrusts itself more and more upon us, I am sure these members of Parliament will continue to advocate strong and positive action.”