Canterbury asks Govt to halt province’s "decline’

Press, 27 August 1977, Page 3

Canterbury asks Govt to halt province’s "decline’

[ Submissions untended toi [help halt the “declinq” of [Canterbury’s fortunes were sent to the Minister of: Regional Development (Mr| Gair) yesterday. They were produced by a committee including members of the Christchurch City Council, the Canterbury Manufacturers’ Association, the Canterbury Trades Council, the Canterbury Chamber of Commerce, and the Canterbury Master Builders’ Association. A five-man delegation representing these organisations had intended to meet Mr Gair in Wellington yesterday to discuss the submissions. He was unable to meet it, however, as he was detained in Parliament. He will study the submissions. i According to the Mayor of | [Christchurch (Mr H. G. i Hay), the leader of the dele-! [gation, Mr Gair is expected; I to reply in writing within a (few days, and may meet the}

(delegation next month. ' The Government had the .power to reverse the steady (decline of Canterbury’s fortI unes, the submissions said, [since contributing factors I were under Government control. One 'actor was the recently increased disparity in the cost of electricity and natural gas. Although gas was cheaper, it was not available to the South Island. Disadvantages to the South Island were reflected in manufacturing costs, partly because of higher heating bills in colder weather. It would be unfair to continue the disadvantages until oil ■ or natural gas were [found in the south, or became available at a uniform [national charge, the submisjsions said. ! Competition with northern [manufacturers was not equal [because of freight costs. In [addition, some northernmade goods become scarce! [in the South Island when ! northern factories, to save money, cut off supplies to

[higher freight-cost areas. | •; “Southern manufacturers! can hardly act likewise and! - survive,” said Mr Hay. , It was known that many; > local industries were consid-i - ering planning future devel-! opments in the Auckland! ;!area. Freight and energy] ’ costs would have a great I bearing on what they did ini > the end. Canterbury also needed] - help in retaining workers! who w'ould normally drift to] : the north when work be-j 1 came scarce. Even though [ , some new factories had! * opened as others closed, the] ■ region could not boast a[ high economic growth rate] ■ in recent years, compared] I with other districts. ;! The Christchurch gasi • works future was not guar-[ i anteed. If there was a possi-] blity of closing, the depu-[ tation hoped the Govern-j ment would act swiftly to I I counter such a move. i Problems of unemploy- [ ment in the building in-|i iidustry were aggravated by I i the reluctance to employ ap-; prentices. In five or six! years, that would lead to an']

[acute shortage of skilled [tradesmen in the region. [“This, in all probability, [will result in an excess [demand for skilled trades[men when the industry returns to its normal state,” IMr Hay said. That would) j restart the inflationary spiral. ! There were several ways] ! the Government could help,! !the submissions said. South: ! Island power authorities I [could be given a lower elec-( I tricity rate than North Is- j [land counterparts until nat-j iural gas was available at a] [reasonable cost. { A “througb-inter-island! ;rate” could be granted fori [the Cook Strait portion of I ! rail journeys, assuring uni- [ [form freight rates for the' ientire country. - | Those measures could pro-| [vide extra incentives for] [industrial expansion in the) [region, and builders could be [stimulated by mortgage fin-i [ance injections for new and' 'old homes. I More urban renewal' [money for local bodies could! [help to stabilise the Canter-1 'bury work force.