Aid to South pledged by Labour

Press, 20 September 1978, Page 3

Aid to South pledged by Labour

Christchurch and Nelsonj' would become regional! development areas under a: Labour Government, making the whole of the South Island a regional development area, said the Leader of the Opposition (Mr Rowling) in Dunedin yesterday. Mr Rowling released the 'main details of the Labour! Party’s regional development! ! policy, in an address, to the! : Otago-South|and Manufae-j 'turers’ Association. ■ He said that a fourth! I Labour Government would! ! restore and expand the basic! ! programme of regional; I development developed by I the third Labour Govern-j ment from 1973 to 1975. The! policies were necessary “to. rebuild the shattered indits-j trial and employment base!, across much of this coun-j try” and to consolidate the!’ balancing of New Zealand’s! growth. ! Details of the policy! 'are: — Development Hawkes Bay, Nelson, and; Christchurch will bej added to areas quali-i fying for regional deve!- ! opment assistance. A ( co-ordinating South Is-! land council will be set; i up- ! More auotonomy will be I given regional development councils. (At present all applications have to be sent to Wei-! lington). Regional Development Bonds will be issued. These will have “attractive interest rates,” will be eligible for tax exemption, and will be available for investment in the region nominated by the investor. Their funds will be designated primarily for low-inter-est loans, subsidised by the Government, to set up or expand small businesses approved by regional development councils. The basic form of assistance to regional development areas will i continue to be the sus-j pensory loan system.! but extended beyond; manufacturing areas. Transport I Freight subsidies will be! ! continued where there is; ! a proven need. Exporters will be allowed toj deduct from their taxable income 150 per cent of costs in getting products from the point of manufacture to an export port. This will encourage industries to develop in regions close to the source of raw material.

I The “Iron bridge” concept ' will be accepted, but a through rate across' Cook Strait will apply only to goods moving south to north. There will be no over all increase in rail freight charges to meet the ■ cost. Instead, the subi sidy will be met by a direct charge on regioni al development funds. I Energy There will be a standard price of liquid petro-i j leum gas. It will be sup-i ; plied to South Island ! main ports at the same ! price as it is available throughout the North Island. It is expected I - there will be one main i port in each region. Where power represents ! a big cost in a regional industry, there will be; provision for a differi ential. Indus try (The .10 per cent sales tax .' surcharge on plant and i machinery will be removed. I The depreciation allowance ! on plant will be changed. At present there is a write-off period of 10 years. Mr Rowling said this tied up working capital over ! a critical period, and Labour would allow manufacturers to write off plant after three years, or after one year if the equipment had been used on a double- . shift basis. Stricter controls will be placed on Government and other official purchasing to ensure that New Z e a 1 a n d-made goods are used as much as possible. Labour would subsidise 50 per cent of the first year’s wages of any apprentices and trade trainees taken on in ! 1979. In regional devel- . opment areas the subI sidy could be extended [! to 100 per cent of wages. The subsidies would be halved in: j 1980. Mr Rowling said! I that employers who had' maintained a high level' t; of apprenticeship and! I , trade training throughi! out the present recession would also be assisted. A Labour Government will continue with its policy of decentralising Government departments, to give greater opportunities for more varied employment in provincial centres.