EXPANSION IN MAIN CENTRES OPPOSED

Press, Volume CXIII, Issue 33382, 14 November 1973, Page 1

EXPANSION IN MAIN CENTRES OPPOSED

(Hew Zealand Press Association)

WELLINGTON, November 13.

The Government would do everything it could to prevent large industrial plants being built in the three main centres, said the Minister of Trade and Industry (Mr Freer) today, speaking at a productivity’ seminar at Lower Hutt.

“We believe that at present it would be idiotic to encourage largescale expansion in the three main centres,” Mr Freer said. New industries in larger provincial centres would bring new people into employment The Government

wanted new production in new factories without robbing employers of labour. Labour-robbing would be inevitable with new factories in the three main centres. Mr Freer said"that one of the ways to improve productivity was to modernise plant. With overseas reserves at record levels, now was the time for New Zealand to get all the modem equipment it needed. The Government would examine increasing depreciation rates “before long’’ to help industry keep its plant up to date.

Productivity, said Mr Freer, was a matter of getting more out of the same or preferably fewer resources. It did not mean working harder but it meant being more efficient. The world-wide shortage of fuel and raw materials might last longer than expected. Therefore, industry should make sure that supplies were used to the full and not wasted. Mr Freer urged industrialists to use the new productivity centres and to set up

productivity - improvement programmes.