P.M. Sees Tasman link benefits

Press, 27 March 1980, Page 2

P.M. Sees Tasman link benefits

Living standards in New Zealand and Australia will be higher in 10 years if proposals for closer economic ties proceed, according to the Prime Minister (Mr Muldoon). < This could be achieved with no additional outlay of resources, but would mean that some businesses in both countries would go out of business, Mr Muldoon told the Manufacturers’ Federation convention in Christchurch yesterday. “Some farmers on both sides, of the Tasman will be no longer producing \yhat they are producing today,” he said.. “However, the consumer will be getting cheaper goods than would otherwise be the case.” Mr Muldoon gave an assurance that efficient producers in both countries would , have nothing to fear from the restructuring. . By the turn of the century, if what was planned came to fruition, New Zealand’s prospects would be “second to none,” he said.

“I do not expect to be Prime Minister in the year 2000, but children born today will be starting their careers at that time and I want-them to be citizens in a dynamic and prosperous New' Zealand.” This would depend on the detailed investigation in the next few months on issues discussed between himself and the Australian Prime Minister (Mr Fraser) on March 21. Mr Muldoon said, “It would be wrong for me to say to you that we can see a way through the difficulties which affect our proposals for closer co-operation.” One task ahead lay in the area of Tasman transport, he said. Any adjustment necessary would be dealt with “slowly and in a manner which will cause the minimum of damage of inconvenience to existing patterns of economic activity.” On the energy situation, Mr Muldoon predicted a “crunch,” likely to be in 10 years time, between oil supply and oil demand. How-

lever, New Zealand would be well placed for this. He referred to a “new coal age,” in which production of liquid fuels from coal; would take over from oil as a major energy source. Southland lignite desposits would supplement, and finally exceed on-shore and offshore gas supplies. Mr Muldoon described increases in manufactured exports from New Zealand a a growing- success story,” Manufacturers had learnt in recent times that exporting did not depend on natural advantages, but on having a product “in quality, design, and price suited to a distant buyer.” Shipping arrangements and the continuity and com sistency of supply had also to be taken into account, he said. Mr Muldoon assured the manufacturers that the Government would play its part towards fulfilling the possible manufacturing growth outlined in the research study, “Manufacturers export research programme.”