Reply to Lloyd Report

Press, 2 April 1980, Page 27

Reply to Lloyd Report

PA Wellington A lengthy Planning Council discussion paper on economic development has been described as “a pointless academic exercise’’ by the president of the New. Zealand Manufacturers’ Federation (Mr L. H. Stevens). In a statement, he said the Lloyd Report advocating the abolition of import licensing and a policy switch from 1 export-led growth ’.would only succeed in confusing the marketplace. 1 The report was released last week. “The Government and the federation broadly agree that an export-led growth strategy is the right one for New Zealand,” Mr Stevens said. “This strategy involves the continuation for the

foreseeable future of our import licensing system, which was subjected to important modifications in the last Budget.” But manufacturers became concerned when they saw the Government-funded Planning Council publishing a discussion paper, recommending (basic changes in a policy (that the Government had ali ready communicated to the marketplace. “This only gives rise to [uncertainty and adversely i affects the climate for investment and for management generally.” The federation’s own research programme, tabled at the federation’s convention in Christchurch last week, indicated manufacturers were entering a period of unprecedented export growth. A survey of nearly 200 businesses pointed to a 90 per cent increase in the vol-1

ume of manufactured exorts in the five years to June, 1984, he said. “The benefits to the economy as a whole will be enormous. But for many of our industries the. maintenance of a strong home base is essential for the achievement of this increase,” Mr Stevens said. “The restructuring process has been going on for several years and will be accelerated by decisions from the various industry studies by the Industries Development Commission and the Department of Trade and Industry. “There is no doubt in my mind that the manufacturing sector is going to become larger, stronger, and increasingly competitive on the international scene. In these circumstances, the ‘ Planning Council discussion paper has llittle relevance.”