‘No industrial goals in Govt approach’

Press, 17 July 1980, Page 9

‘No industrial goals in Govt approach’

PA Wellington i v i The problem with the ■ present Government is that it is tackling demands for restructuring of industry without any established goals and without attempts to ease the transition problems, says the Leader of the Opposition (Mr Rowling). “The public are left illinformed and increasingly confused, while old established industries are going down the plug-hole,” he said. ' .

“The result must be an increased rate of. unemployment/ -‘decimation of otherwise viable industries, further contraction of the small business sector, and an increasing concentration of industrial and commercial power in fewer and fewer hands.” , Mr Rowling told the Wellington Chamber of Commerce, that the Government’s restructuring policies -had led to the collapse of Mosgiel, and the closing of . Fibremakers’ plant at Shannon. “We will hot follow the

present path and see a Government pull out the support from major industries, then walk away and leave the destruction to sort itself out,” he said.

“For a Labour Government, restructuring and employment promotion must and will go hand in hand.” The principles Labour would be guided, by, in establishing its restructuring policies included: ensuring as little costly disruption as possible; that owners of the capital resources affected by such policies were compensated; that, workers were not expected to carry the whole cost of changing jobs and locations. “The detail of what will necessarily be an extremely comprehensive programme, is still to be developed, in consultation with both the trade union and commercial sectors,” Mr, Rowling said. He warned, ' however, that change would take time. “It must be remembered that the Industries Development Commission programme (for restructuring and rationalisation of the textile industry), or any other restructuring programme, was not designed to produce a miracle overnight. A great deal of the panic and waste that is now seeping through the textile area, for example, could have been avoided, if a sufficient lead-through geriod had been allowed,” e said. “If trade barriers are to

be relaxed, then that must take place over a set timetable, by clearly established targets, known to all, parties. In the inter-* im period, there is both a responsibility, and a role for" Government or quasiGovernment organisations,, to provide the ■. expertise and' advice oh where capital and plant may be shifted.” One of the problems was the “myriad of Government departments and organisations which have a finger in the businesss world.” One such example was the Development Finance Corporation, Mr Rowling said. “A simple streamlining of functions, and a redirection of an organisation such as the Development Finance Corporation, back to what it should be doing, would in my view, make a huge difference m both quality and quantity of investment advice.”