Manufacturers ‘singled out’

Press, 9 August 1980, Page 12

Manufacturers ‘singled out’

PA' Auckland All sectors of economic activity, and not just manufacturing, must be involved in restructuring, said the president of the Manufacturers’ Federation (Mr L. H. Stevens). Manufacturers felt they had been unfairly singled out by the Government for scrutiny while other areas had been left alone, Mr Stevens said.

“It might well be a good idea if other sectors, including Government departments and State trading organisations, were subject to critical examination by an Industrial Development Commissiontype body,” he said. Restructuring must be carried out “across the board.”

Mr Stevens criticised restructuring studies done t by government departments, which, he said, showed “evidence of undue haste." This caused concern that, largely because of timetable pressures, the quality of research had suffered. The immediate outlook for manufacturing was not promising, Mr Stevens said. The Industries Studies programme and developments in relationships

with Australia had uncovered many practical problems.

It was possible, as the Prime Minister (Mr Muldoon) had said in his Budget address, that the whole free trade exercise with Australia might have to be abandoned, said Mr Stevens. He shared Mr Muldoon’s view that this would be a pity. The present economic situation called for extreme caution, generally on the part of the Government. Hasty moves would only serve to destroy many firms, Mr Stevens said.

More than 200,000 people could become unemployed if the Government tried to restructure industry rapidly by cutting protection, he said. Such a policy would be ‘.‘suicidal.” In Australia, the Government had decided thtat while unemployment remained above 6 per cent, further moves to restructure industry would be held in abeyance. “This decision recognises the reality that too much surgery can kill rather than cure the patient,” said Mr Stevens. “Our unemployment level is at present lower in New Zealand but there is a lesson for us in this decision.”