Synthetics As Part Of N.Z. Textiles

Press, Volume CX, Issue 32210, 31 January 1970, Page 1

Synthetics As Part Of N.Z. Textiles

(New Zealand Frees Association) WELLINGTON, January 30. The New Zealand textile industry needs to, and will, move into the fields of synthetics, according to the report of the committee of inquiry into woollen and associated textile milling industry. The report was made public today by the Minister of Industries and Commerce (Mr Shelton).

“There is greater scope for technological change in the production of nonwool products than in the production of wool products,” the report says.

“While wot! fox decades ahead will dominate the New Zealand textile industry, it will have to move into the field of synthetics.” If a synthetic cannot be extruded in New Zealand, the material may be imported in fibre form for spinning. The committee was set up late in 1968 to examine the problems *>f textile manufacturing in New Zealand. The chairman was Mr H. C. Holden, and its members Messrs J. H. Gemmell, W. E. Hale, D. A. Ross, B. A. R. Spence and W. B. Sutch. There are 12 companies running 20 units in textile milling operations in New Zealand, employing more than 4000 factory’ staff. The report says the question of protection is important to the future of the industry. It says protection by tariff alone will not be satisfactory at this stage for the industry’s development. Devaluation did not carry much benefit to the industry: “The costs structure in New Zealand will gradually be adjusted so that iu a few years the advantages of devaluation will disappear and a review of the rates of import duty will be necessary.”

Import Licensing Import licensing also required some changes. The report says the committee recommends a system aimed at redistributing ’icences “more in keeping with commercial needs.”

Exporting should increase: “The volume exported is too

small a percentage of its total output, and a faster growth in exports must be, gained.” It considers that a worthwhile increase in exports of fine wool products can be achieved, but the major textile export potential lies in development of an export trade in crossbred wool products. There is a need for more vigour in processing. The committee considers that the existing processing industry is too small, too weak financially and too fragmented to achieve any substantial strength of its own volition.

It therefore recommends that a joint body of the wool industry be established, called the Wool Processing Council, to weld together the independent sections of the industry. New Company

Mr Shelton said that the Government had taken action on some of the committee’s proposals. Several of these proposals dealt with the processing of wool, and after considering them the Government had decided to establish a wool topmaking investigating company. “I will shortly be making an announcement about the appointment of directors of the company,” he said.

A number of other recommendations had been accepted in principle by the Government. Among these were recommendations that the woollen mills aim to supply 80 per cent of the domestic market for woven wool piece goods. On several other recommendations the Government was seeking the views of the industry, and others were still being considered. In a number of cases it was unable to accept the committee findings.

It had not adopted directly the recommendation dealing with redistribution of import licences.