“Manufacturing the main problem in Australia”

Press, 14 December 1977, Page 23

“Manufacturing the main problem in Australia”

NZPA Sydney The main problem for the I Australian Federal Govemment in 1978 would be the ! manufacturing sector, the i chief general manager of the ' Bank of New South Wales I (Mr R. White) says. ■ “Industry is currently running at less than full capacity, and while the Government must be given good marks for getting the rate of inflation down, it will now have to make some longterm decisions on the manufacturing sector. “So far the Government has been obliged to make short-terjji decisions on the manufacturing sector, but now with ap assured threeyear term it can make some

long-term assessments in this area,” he said. Historically, our interest rate structure is too high compared with other countries. However, the climate is gradually being established for a lower interest rate structure in Australia. “A further result of the election will be restored con-

i tidence in the Australian dollar and a renewal of : overseas capital inflow into i Australia. “The latest trade figures : ; are good. There is some hesiI tancy now, but renewed coni fidence by overseas investors should lead to a more normal i level of capital inflow,” Mr • White said.