New look at wallets

Press, 18 March 1977, Page 4

New look at wallets

NZPA Canberra, The Australian Govern- j ment will reconsider its deci-[ sion to impose a 25 per cent tariff on leather wallets made, in New Zealand. The Minister for Overseas' Trade (Mr Anthony) said yesterday that he had asked his Minister of Industry and Commerce to take another look at the problem “to see if there is scope for making j some concession to New' Zealand ”

The tariff, imposed last year, threatens the S2M export trade of Tatra Industries, of Wellington. Mr Anthony announced his decision after he had met the Prime Minister (Mr Muldoon). He made it clear though that the good will in trading between the two I countries might be affected) if individual items were con-j stantly subjected to cam-I paigns such as that mounted; over the wallets. The New Zealand Australia Free Trade Agreement was formed with the object of expanding trade, not balanc-| ing it, said Mr Anthony. Australians saw any suggestion of a balanced Tasman trade as an impediment to the future of N.A.F.T.A. "We want to proceed as quickly as we can, but some of the areas New Zealand manufacturers want to expand would cause further

hardship to sections of the Australian economy,” he said.

, He was particularly critical about New Zealand’s import 'controls, which “caused great concern to Australian exporters.” Although New Zealand imposed then to protect foreign exchange, Australian manufacturers saw them as a device to protect trade.

Mr Anthony said he was plased that New Zealand manufacturers had developed greater confidence. New Zealand had a balance-of-payments problem and had to apply import

restrictions; Australia was troubled by unemployment. “I don’t think it is fully recognised in New Zealand that we do have an unemployment level approaching 6 per cent” he said. “In New South Wales, where much of our manufacturing industry is, the level is almost 7 per cent.”

The problems facing both countries were temporary, and should not have any long-term effect on the future of N.A.F.T.A.; but there were unlikely to be any radical departures leading to immediate expansion at next month’s talks, he said.