NATIONAL DEVELOPMENT ‘Protection Should Be Flexible’

Press, Volume CIX, Issue 31982, 8 May 1969, Page 1

NATIONAL DEVELOPMENT ‘Protection Should Be Flexible’

(New Zealand Preet Association) WELLINGTON, May 7. A consensus on protection of industry emerged from the National Development Conference today after what is believed to have been some intensive “sector caucusing” overnight and this morning.

The essence of the compromise introduced and adopted with little comment by a committee of the conference this afternoon was as follows:

“The manufacturing sector should be accorded a level of protection sufficient to promote steady industrial development, increasing manufactured exports and full employment. > “This level of protection, however, should be such as to encourage competition, effi ciency and reasonable prices to other sectors and to consumers and should also have regard to the need to give the consumer choice and variety. “It is accordingly recommended that the system of protection should be flexible, that import licensing should

g be replaced by tariffs as the dmain measure of protection and that this transition should be carried out in y accordance with a clearly dek fined programme and within J a reasonable time. a ’- New Resolution “It is recognised, however, , that there are cases where ‘ ’ other protective measures in--0 eluding import licensing may 5- be more appropriate than a >S tariff.” »- The new resolution was ■e drafted by a sub-committee, ejwith the Secretary of the Treaf. sury, Mr H. G. Lang, as chairi- man. Committee members >f were Dr H. C. Holland, manus, facturers; Mr D. B. McDonald, d Federation of Labour; Mr A.

C. Begg, Federated Farmers; and. Mr J.. N. Laurenson, retailers. It is believed most of the negotiating occurred In and between the farming and manufacturing groups. The resolution is expected I to be endorsed fully by the full plenary session of the conference on Friday. It replaces four other recommendations, one of which urged the Government to proceed with all practicable haste to implement its announced policy of dismantling the import licensing system and replacing it with a policy of appropriate tariffs. Two other recommendations —dealing with the techniques of determining a standard level of protection, and safeguards to be employed should there be any change in the form or level of protection—were adopted by the committee with amendment.

‘Very Pleasing’

Mr Lang told delegates he was gratified by the considerable flexibility shown by members of the committee.

“It is very pleasing a consensus has emerged,” he said. Mr Begg said; “We hope it will be of most benefit to the Minister of Industries and Commerce so that in future he won’t be faced by the divergent attitudes of various groups. I think it will prove to be of benefit to New Zealand.”