Decontrol attacked

Press, Volume CXII, Issue 32874, 24 March 1972, Page 2

Decontrol attacked

(N.Z. Press Association; WELLINGTON, March 23. It was now patently obvious that the Government’s support for local industry was very superficial, and that there was no genuine intention to protect local industry from a flood of imports, the Labour Party spokesman on industries and commerce, Mr W. W. Freer (Mount Albert) said in a statement today.

Commenting on reports of I staff being laid off by Crown ‘ Lynn Potteries, Ltd, and by woollen mills, he asked how , manufacturers and the thoui sands of people they em-

ployed could have confidence in the Government when two major industries, using New Zealand raw materials, had been compelled to sack several hundred workers as a direct result of the removal of import licensing. "Nothing can be more basic than the exploitation of our clay deposits, yet this particular industry has been so seriously affected by relaxed import controls that it has become necessary to dismiss 120 production staff,” Mr Freer said. . The Crown Lynn Company had developed a most impressive export trade, and yet that trade was now threatened by instability on the localmarket which would mean higher overhead costs for expo® sales. “The ’fcollen industry is one of thraldest in this country, and las used large quantities of bur own products,” he said. ‘ln recent years large capital expenditure has resulted in substantial modernisation and expansion of the range of commodities produced. “Yet as a direct result of Government mismanagement, employment throughout the industry is well over 500 fewer than a year ago, and the hours in which plant is being utilised have decreased about 30 per cent.” Referring to a Dunedin report that more than 400 people had been dismissed from mills in Otago and Southland alone, he said that as these had largely occurred in small provincial centres, the effect was extremely serious. “Manufacturers throughout the country must now realise that if such basic industries as pottery and wool are to be threatened by Government policy, then those which process a high percentage of imported materials are likely to fare even worse,” Mr Freer said. He said the Labour Party called on the Government to call a halt, and to have a realistic look at how industry could be assisted to expand, rather than be compelled tc curtail expansion and employment. “MISLEADING” CLAIM Imports of crockery hat scarcely increased during thf last two years, the presidem of the Retailers’ Federatior (Mr L. W. Smith) said today Commenting on statement! by Mr T. Clarke, genera manager of Crown Lynn Pot teries, that imports ha< caused unemployment, M: Smith said it was very mis

leading to attribute changes in employment levels to imports. '

“Licence allocations have been increased to 105 per cent and 107.5 per cent respectively of the basic allocation in 1970 and 1971. This was much less than the rate of inflation, and insufficient to cover increased freight costs,” said Mr Smith.

“Our understanding is that improved management and greatly increased capital investment are among the main contributing factors to the reduction in employment levels.*’