Concern over imports

Press, 16 August 1978, Page 27

Concern over imports

PA Dunedin The Government permitted imports of low-cost finished goods to the detriment of the sale of locally-manufac-tured goods, said the chairman of Donaghys Industries, Ltd (Mr R. W. M. Greenslade) at the company’s annual meeting in Dunedin yesterday. “Apart from sabotaging export efforts, such a policy can only aggravate New Zealand’s unemployment problem,” he said. The company believed that New Zealand-manufactured goods should not be unduly protected when they could not be produced at prices reasonably competitive with those of other developed countries. Mr Greenslade said the company enjoyed an expanding export market in cordage products which was only possible if it had a sound domestic base.

He said last year’s hay season was one of the worst in recent times and the board’s policy of diversification had enabled the company' to withstand these ! weather effects on profit to a much greater degree than was previously possible. The directors, with directors of other companies, were concerned that the stock adjustment tax relief may not be continued, he said. This relief helped to ocset the erosion inflation had on working capital, and

while the company’s liquidity situation was sound, the board was conscious of the necessity to update plant and machinery at costs in today’s money which could only be described as "astronomic,” he said.

However, if the company’s export drive was to be continued, which it would be,

and if the company was to remain competitive, some substantial new investment would be needed.

The company was proposing a debenture issue of $1,500,000 with over-sub-scriptions of another $500,000. The prospectus for this issue would be released next month.