Specialist Reports To Conference

Press, Volume CVIII, Issue 31769, 28 August 1968, Page 28

Specialist Reports To Conference

(New Zealand Press Association)

WELLINGTON, August 27. Thirteen specialist committees set up by the National Development Conference to determine development targets for the next decade released their interim reports today.

The committees’ final reports and recommendations will be presented to the main session of the conferference next May—almost 10 months after the three-day plenary session which opened today.

The manufacturing committee reported today that its finance working party was considering whether it might recommend some changes in the role of the Development Finance Corporation, which so far had not been widely used by manufacturers. “There is a possibility that the corporation might be used more as a means of focusing certain types of finance not at present freely available to manufacturers,” it said. The working party was also considering the need for an investment allowance for tax purposes for certain specified types of plant—acknowledging the special need of some industries for modernisation or re-equipment. It noted however that selectivity in certain tax provisions was already provided for among various sectors of the economy.

The working party was also considering the role of depreciation allowances on plant and buildings and the tax concessions allowed on research operations. The manufacturing committee’s working party on materials, plant and equipment was exploring the fuller utilisation of New Zealand raw materials.

“In so doing it recognises that New Zealand manufacturers should not be called on to use materials merely because they originate in New Zealand, and that there should be as free access as possible to the cheapest and best materials available in the world. “If the use of New Zealand materials entails more cost the working party feels that the community rather than the

user of those materials should bear that cost,” said the committee.

Small Units

The working party also saw a strong need for rationalisation and amalgamation in certain sectors of New Zealand manufacturing—although it recognised that the small unit had an important role where flexibility, versatility, one-off aiid small-batch operations and a high element of skill were required. “The working party recognises the need for fostering competition but considers that this, with other factors in the past, has led to the growth of far too many units in certain sectors.

“It is considering possible measures to encourage rationalisation, including a national institution to promote voluntary industry schemes,” the committee said. The committee revealed that the working party was also concerned with the need for the fuller use of plant through shifts and was formulating proposals on a national policy to which all interested parties might subscribe to this end.

The productivity committee was considering proposals for a possible national institute of productivity—an independent body which might have the functions of disseminating information on productivity, of co-ordinating training in management and of sponsoring the setting up of productivity groups and inter-firm comparison schemes. The tourism committee reported that the severe restrictions which at present applied to travel allowances for New Zealanders travelling abroad had a marked adverse effect on New Zealand’s publicity drive to attract more tourists to this country.

“The prospect of New Zealanders living and travelling within these iiiadequate allowances convinces many people that New Zealand is a poor country which could not afford to provide comfortable facilities for overseas tourists,” it said.

The committee added: “They see New Zealanders travelling hard and they consider they would have to travel equally hard if they came here."

Under present economic circumstances it was clearly impracticable to abandon exchange restrictions entirely—but the committee appealed for an increase in travel allowances as soon as possible in the interests of improving New Zealand’s publicity abroad.

Referring to economic research and planning, it said one difficulty it had already come up against was the inadequacy of existing statistics about tourism. “To get better information about overseas visitors markets and length of stay of overseas visitors we are asking the various Government departments concerned to amend the embarkation and disembarkation cards,” the committee said.

“We want to simplify entry formalities—but we must also have good information to plan future developments.” Many different Government departments were concerned with the forms and the committee wanted them to agree to get new cards in use by next April.

“If they fail in this they will cost us a whole year’s delay on the planning side,” it said.

The minerals committee made two immediate recommendations in its interim report. It recommends that the Government be requested to grant urgent priority to the introduction of a new mining act this session and that the Government be recommended to amend the Water and Soil Conservation Act, 1967, to provide for representatives from the mining industry to be added to the membership of the Water Allocation Council and the Water Pollution Council.

The transport committee said that with the best of intent it would appear that authoritative reports and subsequent policy decisions concerning overseas shipping and container services, ports development, and the general better co-ordination of transport interests could not be expected until much later in 1969 than the May session of the National Development Conference.

“This committee will certainly report on several matters of vital interest—but considers that in the absence of major policy decisions it will be impracticable to present definitive estimates at the next session on likely demands and investment needs five and 10 years hence," the committee said.