Air of uncertainty in business world

Press, Volume CXII, Issue 33060, 30 October 1972, Page 2

Air of uncertainty in business world

(Neio Zealand Press Association) WELLINGTON, October 29. There were a number of reasons why New Zealand’s economy had not been stimulated by the massive injection of money in the Budget and Supplementary Estimates, the president of the Associated Chambers of Commerce (Mr R. C. Wallace) said in a statement.

He said that Sir James Wattie had already correctly pointed to the dramatic manner in which profits had been eroded by inflation. “The uncertainties of the Common Market, the phasing out of British preferential tariffs and the unpredictable reluctance of the F.0.L., which has yet to make a solid practical contribution to economic progress, are all militating against stable conditions, new investment and new job opportunities.” At the same time, there was one area in which the Government could and must take early action after the conference of the Manufacturers’ Federation and announcements by the Prime Minister. It was clear that there was little if any difference between the policies of the two main political parties on

tariffs and import licensing—both spelt out in different words “import selection” and “tariffs where appropriate,” he said. “The Government has already launched a massive review of import licensing and this has inevitably included a long overdue review of the level of many tariffs and of tariff structures. This review has been going on for some months. The commercial community wants to know where the decisions are.

“Uncertainty is about the worst atmosphere to impose on any commercial community. Prolonging that uncertainty is irresponsible.”

A few minor tariff decisions had been published, said Mr Wallace, but until many more tariff decisions were made, businessmen would not commit capital to create jobs. The Minister had a duty to release the decisions promptly and the business community had every right to be angry if there were unreasonable delay, he said.