'Not worth a bucketful’

Press, 23 October 1980, Page 2

'Not worth a bucketful’

NZPA correspondent Tokyo

New Zealand is a country not worth the proverbial “bucketful of cold water’ as far as foreign, investment is concerned, according to a report prepared by' a Japanese Government-backed trade organisation. The report, compiled by the Japanese External Trade Organisation, says that m summarising “it can be said that as regards investing m New Zealand, problems in productivity remain and prospects are not appealIt lists the following eight points, all negative, which need to be kept in mind

when considering investment in New Zealand: 7 The annual rate of price I increases has been growing 5 in recent years (16 per cent I to 18.5 per cent) and con- • sequently wages have soared > (12 per cent annually). - Sales tax and income tax for individuals and corporati ions is high. ; The number of technicians i is decreasing, because many 1 are leaving to work abroad. i The rate of unemployment i is high. I Pressure from labour - unions is strong, and labour conflicts are numerous. t In general, when the fori eign investment ratio exceeds 1 25 per cent, a-comparatively

strict investigation by the Reserve Bank of New Zealand is sought. There is a deep-seated tendency among managers to adhere to conservative thinking. The domestic " market is small.

The report says the New Zealand Government welcomes investment in industries able to acquire foreign currency,' as well as for resource development and unemployment measures. “We would encourage studying investments in New Zealand and fully grasping the country’s actual situation,” it says.