"Rip-off’ on TV exports — M.P.

Press, 14 August 1980, Page 4

"Rip-off’ on TV exports — M.P.

Parliamentary reporter

Television manufacturers are taking part in a $250,000 "rip-off” of the taxpayer under the export incentive scheme, the member of Parliament for Manurewa (Mr R. O. Douglas) asserted in the House yesterday. Television sets being exported from New Zealand were qualifying for an incentive under the second-highest classification, whch was meant to apply to exports which had a higher than 75 per cent local content, he said.

Mr Douglas referred to' two recent questions in the House, one of which was answered on Tuesday, on New Zealand television exports, and the level of imported content in television sets sold locally. On average, television sets: sold in New Zealand had an ex-factory selling price of $576, of which $259.77, or 45.1 per cent, was imported content.

In the nine .months to| March 31, 1980, 9624 colour television sets were exported from New Zealand at an average price of $249.

This figure was the aver-i age calculated from statistics! for that period, and could include-some incomplete sets or ancillary equipment. .. To qualify, for the export incentive at present accorded television manufacturers, the export price would have to be about $lO4O a set, Mr Douglas said. The ordinary taxpayer was footing the bill, he said. "This is an extraordinary situation. How did it happen? At best it was a mistake. At worst it was another example of an officer, a department, or a Minister acting improperly,” Mr Douglas said. ‘‘The position is a disgrace and the Trade and Industry Department should be investigated from top to bottom — and the sooner the better,” he said.

The member for Auckland Central (Mr R. W. Prebble) said that the only possible way a manufacturer could export television sets from New Zealand to Singapore was if the taxpayer was subsidising him to do it.

That would be acceptable if manufacturers were legally entitled to the level of ex-

port incentive they were getting, but they were not. “It! is a scandal,” he said. i “Is this what the Government means when it says ‘Help private enterprise’ — allowing them to loot the export incentive scheme?” hel said. I

In reply, the Government member for Hamilton - East (Dr I. J. Shearer) said that the Opposition was just turning over stones to see what it could find underneath. All would be explained to the Opposition “at some future date,” he said, after which apologies would be due; to the staff of the Trade and: Industry Department.

No further elaboration was) forthcoming from the Gov-i emment benches. Later, the Under-Secretary; of Trade and Industry (Mr Al- 1 len) told N.Z.P.A. he would have Mr Douglas’s claims! checked with the department! this morning. "I have no reason to believe it is right. All of these things are looked at in depth before they are classified. I will find out today,” Mr Allen said.