Scott sets example

Press, 23 October 1980, Page 19

Scott sets example

PA Wellington The tough period of reorganisation that Scott Group Ltd, had been through in the last few years could be a good guide for the country, said the chairman (Mr D. H. Scott) at the annual meeting. Mr Scott said that “in many ways the continuing improvement in the fortunes of this group can be used to illustrate what could be achieved on a national scale if the same principles were applied to our political leaders.” The management had to learn to deal effectively with most of the considerations that have had to be taken into account by the Government. “Firstly, in economic terms this company was going backwards with declining earnings in the same way as New Zealand is suffering from declining G.N.P. at the moment. The action we took was to cut those extravagances we were unable to afford, and there is plenty of scope for doing that with public expenditure in this country, "Secondly, we had to face some political criticism from many who did, not'like the steps we were taking and who lacked the perception to appreciate the need for them, by standing firmly behind our decisions and not yielding to this pressure they were put into effect. "By paying less attention to political pressure the Government could also, perhaps.

achieve a more positive result. “Thirdly, we have had to face social consequences artsing from our restructuring in the same way as the Government has to accept responsibility for any restructuring of the community it Undertakes. “However, where our actions have made people redundant, they have been paid generous severance amounts for a definite term. In effect this forces them to face the need to relocate by finding new positions more suited to their skills and thereby generally benefiting our community. “Compare this with the Government attitude which allows unemployment benefit to continue indefinitely and allows many benefiicaries, to avoid facing reality, at the expense of the whole community,” Mr Scott said. There was also a timing difficulty which had to be faced between taking unpopular measures and when benefits arising from those measures became apparent. “The recovery we have made is now apparent, but we have had to be positive to achieve it, and there is no doubt in my mind that the Government could benefit us all by taking a much firmer attitude towards national restructuring under each of the points I’ve referred to,’ 3 he said.