MANUFACTURING POTENTIAL Christchurch Second To Auckland

Press, Volume CX, Issue 32393, 4 September 1970, Page 1

MANUFACTURING POTENTIAL Christchurch Second To Auckland

(From Our Own Reporter) WELLINGTON, September 3. Because of its size, range of manufacturing activities, transport and communications, and availability of flat land, Christchurch has been nominated as second to Auckland as the location with the greatest longterm manufacturing potential in New Zealand.

This is one of the more striking conclusions of the report to the Minister of Industries and Commerce (Mr Shelton) by the New Zealand Institute of Economic Research, released today.

The survey says that inquiries among Auckland firms have shown a very small proportion in any way dissatisfied with Auckland locations compared with any other.

Firms based in Wellington and the Hutt area seemed less satisfied because of a more severe labour problem, and the shortage and high cost of land for expansion. “Christchurch manufacturers, it appears, have no outstanding problems, although labour is short and the cost of freighting goods to the North Island, especially Auckland, is a topical issue,” the review says. “Compared with the two main North Island industrial centres, however, the general impression is not one of dynamism, though there are, of course, significant exceptions." In an H-point programme of recommendations, the review has found against any attempt at direct intervention by the Government to influence the pattern of regional development

Manpower Policy

Having said this, the review believes that the Government should act to reduce any adverse effects of the present growth-pattern by assisting population mobility between regions and occupations. This, it suggests, could be best achieved within a general manpower policy. Persons not wishing to shift from declining areas would require financial assistance, with perhaps training in craft occupations, thus

avoiding the commitment of industry to uneconomic locations.

It is recommended that the Government intervene to avoid disruptive changes in unemployment This should be done either by negotiating a transition period or providing bridging finance where applicable. The intervention, it is emphasised, should be only over the transition period, unless the industry should be fully viable in the location, once short-term problems are overcome.

The report suggests regular 10-yearly reappraisals, plus studies by the various Government departments of the efficiency of their allocation between regions. A regional alignment of public service charges with costs in various areas should be carried out, these to include the costs of supplying power to different sites.

An intensive economic study of the transport industry is recommended with a view to rationalising the demarcation between road, rail sea and air transport, and removing anomalies on rating structures, especially on rail and air. “The Government should ensure that regional differences in the availability of finance from commercial sources does not inhibit the exploitation of commercial opportunities in regions,” the report says.

It adds that a permanent departmental section should be established to provide information to firms on location “and that this should be the main function of the Government at present in regional development." > The review says the Labour Department has the best collection of data at present for this purpose, but the new section would have to provide a wider range of information. It would need factual data on regions and centres, and the particular characteristics of particular industries and firms.

Its last recommendation is that local bodies should be encouraged by the Government to attract and plan for industrial growth. (Institute’s Report, back page.)