Shipbuilding bounty advised

Press, 29 December 1980, Page 10

Shipbuilding bounty advised

PA Wellington ' The shipbuilding and repair industries need a bounty system, according to the report of the Industries Development Commission on the commercial shipbuilding and -repair plan The plan calls for a longterm bounty on all vessels of more than 18 metres blit not more than 90 metres and on . all ! refits and modifications costing more than $lOO,OOO. .- The use of taxpayers’ funds, to reduce users’ costs was justified on strategic grounds, the report said. It would help the New Zealand builder to meet competition with overseas subsidised yards. It also urged a short-term bountv on fishing vessels of Ministry of Transport survey length but not over 18m, suitable for upgrading for the inshore fishing fleet.' Lower duties and import

licensing exemption was also needed. Another recommendation was the setting up of a shipbuilding industry co-ordinat-ing committee to oversee the administration of the proposed package. The report noted there were 30 yards in 14 sites employing about 500 people. The measures were needed to make sure the industry could build fishing boats in the 25 to 3.5 metre range expected to be needed for the development of the exclusive economic fishing zone.

The Minister of Trade and Industry (Mr Adams-Schnei-der) said last evening that the Government had not yet considered the report. Its release should not be seen as indicating a commitment to any particular stance. He intended discussing the measures in the report wit’, interested parties, before final decisions were mad< next yean ■