Problems for fish industry

Press, 12 August 1980, Page 17

Problems for fish industry

PA Wellington The fishing industry faces problems, according to the Rural Bank. While there has been a significant increase in production and export earnings, the industry faces problems of increasing costs and rapid expansion, according to the bank’s annual report, which has

been tabled in Parliament. “There is an immediate need for stability and an industry development plan for the future,” says the report. Over-all lending to the industry during the year was down on the previous year, particularly in respect of the number and amount of approvals for

the purchase of vessels. Export suspensory loans approved for the purchase of vessels and processing and storage establishments, related to the catching and export of less preferred fish species, increased. The fail off in demand for loan finance — from $10.6 million in 1978-1979

to $5.78 million in 19791980 — was not unexpected and was attributed to an increase in the capital investment in fishing boats in recent years. The industry has expanded rapidly, the report says. Larger fishing vessel requirements have been met mainly through, promotion of joint ventures

with foreign partners and the introduction in 1976 of the fishing vessel duty free importation scheme for vessels exceeding 21 metres in length. The fishing industry is going through a period of consolidation, the report says. But once the New Zealand partners in joint ventures have gained experience in deep water and new fishing techniques, a reviewed demand can be expected as foreign joint venture vessels are replaced with New Zea-land-owned and managed vessels.