Secondary Export Targets Raised

Press, Volume CIX, Issue 31942, 20 March 1969, Page 26

Secondary Export Targets Raised

(New Zealand Press Association)

WELLINGTON, March 19.

Substantial increases in the export targets for New Zealand manufactured goods are proposed in the report of the manufacturing committee of the National Development Conference, released today.

The report, the first of 15 dealing with various sectors of the economy to be made public over the next seven weeks, will be considered by the second plenary session of the conference in early May.

The committee expects a rise in manufactured exports (excluding manufactures based on agriculture, forestry and fishing) from an estimated sslm in 1968-69 to SBBm in 1972-73 and 8208 m in 1978-79.

The original targets for the sector—proposed at the conference in August last year—were, at current prices, Ssom in 1972-73 and sl2om in 197879. As a firm decision to proceed with the aluminium project at Bluff had now been taken, an allowance had also been included for the exports of the smelter.. The chairman of the committee (Mr M. J. Moriarty), Secretary of Industries and Commerce, said today that if manufactured exports from other sectors, comprising such products as canned vege-

tables and pulp and paper, were included, the increase

the end of the decade about 19 per cent of New Zealand’s total exports.

Compound Increase The report said the annual average compound increase in the value of output of the manufacturing sector was likely to be 6.4 per cent, according to industrial production statistics, between 1967-68 and 1972-73. This rate of growth was likely to be sustained between 1972-73 and 1978-79. . In terms of the percentage of exports to total output, the report said that, given the right environment, the aim of a rate of 10 per cent or more would be quite realistic. The committee believed that quite substantial increases in manufactured exports from New Zealand could amount to insignificant proportions of world markets and were unlikely to lead “to the access problems” faced by pastoral exports.

Govt Encouragement

indicated would be from an The report said the comestimated s93m in 1968-69 to mittee believed that positive sl44m in 1972-73 and 5297 m Government policies of enin 1978-79, representing at couragement for the manufac-

taring sector were essential. The committee believed that no one form of Government activity could by itself lead to a satisfactory rate of growth or to the best pattern of manufacturing, what was needed was a “policy mix” which was most suited to the general and specific objectives at the time. The aim should be to leave industry as free as possible to make its own decisions about future production and' investment policies.

Possible Help The committee saw the most fruitful avenues for Government assistance as: the application of technology to manufacturing: the further development of skills for manufacturing; and ready access for manufacturing to plant and materials. Others were the application of improved productivity and management techniques; assistance in the more intensive use of capital equipment; the possible establishment, at a university or as a division of the Institute of Economic Research, of an Institute of Industrial Economics; the availability of a wide range of liaison services, especially to smaller manufacturers.