Big Economic Changes Forecast In Report

Press, Issue 32345, 10 July 1970, Page 4

Big Economic Changes Forecast In Report

(N.Z. Press Association) WELLINGTON, July 9. Exciting developments and great changes in New Zealand’s economy in the 1970 s are forecast in the annual report of the Department of Industries and Commerce tabled in Parliament. “Further extension of the capital-intensive [basic industries, exploitation of mineral resources, growing exports of manufactured goods, and the introduction of containers can be expected to occur,” the report says. "These developments will all contribute to a more balanced economy which will be a strong foundation for adequate and stable growth.” . Confidence was widespread among manufacturers that they could compete internationally on overseas markets and in New Zealand. “There is also much greater pride throughout the community generally in our manufacturing industries and a recognition that they have an important role to play in the future economic development of New Zealand. The problems of the 1970 s and the National Development Council targets will therefore be approached in the right spirit

and this will be a decisive factor.” If a successful industrial development policy for this , decade was to be established ’ the Government would have 1 to know what kind of competition domestic industry would face without import • licensing. This would enable the most suitable devices to ■ be used to assure New Zea- ! land manufacturers of fair and reasonable protection. “We need to be able to go , further, and where necessary ' to consider whether addiI tional measures are in the i national interest to assist > industry to become more comj petitive, for example, by pro- • moting more research and , development, better training, ; amalgamation of units or the . encouragement of new invest- , ment,” the report says. I Industrial development in 1969-70 continued at a much I higher rate than in the pret vious three years, the report - said. i Proposed capital investment I in projects approved by the i department increased more > than threefold over the year ■ ended March 31, 1969, from I $4.2m to 814.9 m. The esti- ■ mated annual value of proi duction increased from $6.3m ■ to $27.9m. : Not included in these fig- : ures was the proposed sssm • expansion programme of N.Z. Forest Products, Ltd, and the department only considered

those projects which required special import licences for machinery and plant.