Inquiry into motor vehicle industry

Press, 9 May 1981, Page 6

Inquiry into motor vehicle industry

PA Wellington An inquiry into New Zealand's motor vehicle industry will be conducted by the five-man Industries Development Commission under terms of reference announced yesterday. However, any formal recommendation by the commission that, motor vehicle assembly in? New Zealand should end has been ruled out by the Government. The terms of reference are designed to ensure that the commission recognises the Government’s wish to maintain the assembly and automotive component manufacturing industries in New Zealand.

"If as a result of our inquiry we came to a view that New Zealand should not assemble motor vehicles we could say this in our report, but any recommendation, will need to concentrate on making the best of what we have got in New';: Zealand,” said the commission chairman (Mr T. Tarrant) yesterday. The Government has asked the commission to report by April 30 on . the. present state of New Zealand’s motor vehicle industry, the potential for its‘development, and the future objectives of retaining the, assembly and automotive • component manufacturing industries. This inquiry.is designed to: • Improve efficiency in the industry. • Ensure that future investment in the industry is an efficient use! of resources. • Take into account developments in the. international motor vehicle industry. During the course- of the inquiry the 'commission can

broaden its scope as it thinks fit. The terms of reference have been welcomed by all sectors of the industry.

The convenor of the combined motor company unions (Mr P. Kelly) said the terms of reference were a distinct improvement on the draft terms shown to the unions about six weeks ago.

The unions and the manufacturers had met the Minister of Trade and Industry (Mr Adams-Schneider) arid this may have led to the change. While the terms of reference were still not exactly what the union would have liked "it is a distinct improvement on the original,” he said.

Mr Kelly said that the draft terms seen by the unions had not referred to retaining the automotive component industry, and he had been sure the I.D.C. was not to be asked how to make thi? industry more efficient but how to close it down.

That did not appear to be the case now, but the terms would still have to be studied in detail.

Mr Kelly said that the commission chairman had spoken of a full-time position being created to assist the I.D.C. with an appointee not necessarily coming from management,

“The combined motor company unions will seek to talk to Mr Tarrant fairly quickly about such an appointment in the belief that all parties should be represented in any full-time positions,” Mr Kelly said. Mr D. McDonald, president

of the Motor Vehicle Manufacturers’ Association, said yesterday that he was pleased that the terms of reference had' been settled.

They were in line with what the association had discussed with the Trade and Industry Department in draft form several months ago and he was sure a fruitful investigation would result.

Mr J. Green, executive officer of the Automotive Component Manufacturers’ Federation, said that he believed the terms of reference fully reflected the industry and would allow the commission to do a thorough job. The inquiry follows a controversial interdepartmental study into the industry carried out last year by representatives of the Department of Trade and Industry, Customs and Treasury.

The study, which criticised inefficiencies in the industry, was released last October after its contents were “leaked.” Other members of the commission are Messrs N. V. Lough (deputy chairman), H. E. J. Martin, E. H. Halstead, and B. L. Lyons.