Govt aid for firm

Press, Volume CXV, Issue 33779, 27 February 1975, Page 3

Govt aid for firm

r.v.Z Press Association) ■ HAMILTON, February 26. The Government has agreed to finance the production of agricultural aircraft if the Hamilton firm, Aerospace, is forced to stockpile the aircraft because of a collapse in the number of orders. The agreement — thrashed

(out during a day-long meeting between the company’s directors and the Minister of Trade and Industry (Mr Freer) in Hamilton yesterday — will allow Aerospace to have its essential forward equipment orders underwritten by the Government. The company’s current export orders for its Fletcher agricultural aircraft are expected to be completed by August or September. i But the board chairman (Mr G. F. Perry) said today the company was hopeful it would soon receive more forward orders and not have to rely on any great properi tion of Government assistance.

I The production of agricultural aircraft for New Zealand and Australia stopped a year ago when primary producers’ incomes fell. ; The company is now: working on an order of 10 i aircraft for Iraq. Mr Freer said last night; the Government has no intention of withdrawing its participation from the industry, or from many of the others it was helping (N.A.C. and Air New Zealand each own 25 per cent of Aerospace’s shareholding). The firm’s 300 workers need not fear retrenchment. “HYPOCRISY” Mr Freer criticised the "hypocrisy” of companies who championed free enterprise but “come hammering 'on my door for financial aid jwhen they can’t stand on ■ their own two feet. “When the chips go down these private enterprises seek help from the Government. They then want Government funds — taxpayers’ funds,” he said. “We are now helping comIpanies to stockpile durable (goods so that when the (boom comes, as it must, we (will have the goods readily available and from a workforce that is still intact. “I know the Government is breaking new ground with this sort of policy and doing things in unorthodox ways — but we dare to be different. Stagnation and, unemployment are a very; poor alternative to this pol-I icy,” Mr Freer said.