More Research Vital To N.Z. Industry

Press, Volume CVIII, Issue 31783, 13 September 1968, Page 1

More Research Vital To N.Z. Industry

(New Zealand Press Association) WELLINGTON, September 12. The Consumer Council said today it was urgently and vitally necessary that technical and scientific research facilities be extended in the manufacturing sector if New Zealand manufacturing was to develop and meet the competition of overseas manufacturers, both at home and abroad.

“The scale of manufacturing industry here is such that few firms are big enough to finance their own technical or scientific research units, and most have to rely on outside facilities to carry out this work under commission for them,” the council said in its annual report to Parliament.

“While there are some institutes which have been developed through arrangements between the Government and a particular industrial group, more are needed.” The Consumer Council said it believed a greater alloca. tion of capital resources to the manufacturing and servicing sectors for research would not only result in a larger, more diversified supply of goods of better quality for the New Zealand consumer, but would greatly strengthen New Zealand’s attempts to increase the variety and volume of her exportable goods. Capital Diversion “In a time of over-demand for capital, priorities have to be recognised, but in the council’s view a greater diversion of capital from physical assets, such as factory buildings, etc., to the development of research and its application is not only desirable but essential,” the report said. “It is perhaps unfortunate that so far as the secondary manufacturing industries are concerned, New Zealand is still too ready to look at results in terms of immediate dollars and cents, rather than for long-term gains. “This attitude is difficult to explain when the result of

applied research to farming and other primary production and products are so plain to us.” Commenting on the comparative tests run by the Consumers’ Institute, the report said: “Many improvements to products have resulted directly from the insti. tute’s testing programme. It has also provided many small firms with technical information which they would have found difficult to finance themselves. “Many firms have accepted

suggestions offered as a result of comparative tests. It is apparent that responsible firms welcome the opportunity of having their goods examined and reported on by an impartial organisation and on a number of occasions manufacturers have commented favourably on the thoroughness and fairness of the institute's test procedures. “In fact, some firms have introduced into their own organisations testing procedures similar to those used by the institute.”