Reservations on CER

Press, 29 October 1981, Page 3

Reservations on CER

PA Wellington The Labour Party did not necessarily support the Government's package of closer economic relations with Australia, said the Leader of the Opposition (Mr Rowling) yesterday. Mr Rowling told the Manufacturers’ Federation that Labour supported the CER concept but had “no intention of exporting jobs to Australia.

"We have every intention of making sure that New Zealand benefits at least as much as Australia from the relationship," he said. There had to be adequate safeguards for New Zealand manufacturers.

“I am yet to be convinced that the present package provides them.” Mr Rowling said.

“One of the key problems with CER is the question of import licences. We see import licensing as a key method of protecting New

Zealand industry.' Although we will continue reviewing the system in search of improvements. we have no intention of throwing the concept overboard." Mr Rowling also said Labour had been “less than impressed by the way the Industries Development Commission has done its job. “It has been good at coming, up with plans to remove industries, but very poor indeed in dealing with the question of positive alternatives.

“However, rather than dump it. we intend to improve the commission, and to give it the resources it needs to do its job properly. “The commission will-be required to carry out all its activities in consultation with industry. It will be required to work with both management and unions, and it will be given the ultimate responsibility to come up with viable industry plans —

plans that focus on the need to create jobs, to get more exports, and to substitute on an economical- basis for imports." Mr Rowling told the manufacturers that the next five years would be vital ones for New Zealand.

“If we don't break out of the stagnation of the last five, unemployment can only continue to rise, local industry can only continue to slide backwards, and social tensions continue to get worse.” Overall the last five years had been about the worst since World War 11, Mr Rowling said. An integral part of Labour’s anti-inflation policy was its commitment to encouraging greater competition within local industry. On export incentives, Mr Rowling said Labour had “no intention of pulling the rug out from industries but changes for further forward planning will be necessary.”