N.Z. sliding steadily, says Minister

Press, 25 February 1978, Page 6

N.Z. sliding steadily, says Minister

“New Zealand was no more helpless in the grip of world economic forces than anyone else, but the solutions lay in the hands of its people,” said the Minister of Overseas Trade (Mr Taiboys) at the opening of the Open Export Seminar in Christchurch yesterday. “Can we find within us the inner resources — the strength and determination that characterised our society — to get this country moving again?” he said. Mr Taiboys said that New Zealand was going through a period when its terms of trade had deteriorated significantly — down 43 per cent since 1973. Whereas changing climates in the past had lifted New Zealand out of economically troubled times, it appeared that this time this would not be the case. “The prospects are that our over-all terms of trade will continue to deteriorate, at least as long as we continue to depend on primary produce.” “No lon g-t erm improvement is on the horizon, and the clear prospect of this would be a continuing steady deterioration in our standard of living.” he said. “In reality, we will get ; along a lot better if we base our actions on how the world actually behaves, and not haw we would like it to.” New Zealand’s trade

• promotions efforts this year! 'would be concentrated on! North America and SouthEast Asia, the two areas! with the greatest potential! for export growth, said Mr! Ta I boys. It would also sponsor 111 trade events during this! year, Export Year, and strengthen its trade posts in; Vancouver, San Francisco! and Singapore. He told exporters that New Zealand would not get; away with the attitude hat “Australia should make room for us, but we will not make room for you,” after a delegate accused 8 the Government of “exhorting us to export, but later' bending the knee” to cut! exports to Australia and| allow more imports under the N.A.F.T.A. agreement. “If markets are to be gained overseas, potential exporters must realise that ‘they were in a very . competitive economical climate, said the marketing-! development - manager of; A.H.I. Crown Crystal Glass (Mr R. Lowry). “Gone are the days when the managing-director took . his wife on a working holiday to Australia.” It was necessary to visit a potential client at least three times to get an order. “The first time the client will be testing you: the second time he will know you are • serious about doing ‘business; and the third time;

he will realise you are committed,” said Mr Lowry. The idea of a special tax incentive for workers in export industries, 'as a means of increasing productivity, was criticised by the secretary of the Canterbury Meat Workers Union (Mr Wes Cameron). Mr Cameron, speaking on “Human Involvement in Exporting,” said that everyone was entitled to a reasonable standard of living, and no special sections of the work force should be singled out for increased tax incentives. All workers needed an incentive to take an interest in exporting, however, and they must be shown that increased productivity would benefit them, not just their employers and shareholders. His union was also against worker participation, unless it could be shown , from the outset that the • workers would benefit, and I not just increase the profit of the company, he said. The union did not believe that workers owning shares in the company was in the best interests of the individual or of society in general, but it would be ' prepared to invest .in its industry on behalf of those ‘workers. Mr Cameron called for the New Zealand meat industry to process its own products, a suggestion echoed by the chairman of the Export Year Committee (Mr A. Hellaby).