Labour would review export incentives

Press, 3 November 1981, Page 13

Labour would review export incentives

PA Wellington A Labour government would not “pull the rug out" on industry by withdrawing export incentives, the Leader of the Opposition (Mr Rowling) has told the Manufacturers’ Federation. But he said that if Labour was in power, it would review incentives to ensure they met the aim of adding foreign exchange. “Special attention will be given to the needs of smaller businesses and we will look at extending the grant system to smaller companies;” he said. “We recognise the worth of the present system in the boost it has given to export.” Mr Rowling said some industries had made long-term business decisions based on the scheme. “We have no intention of pulling the rug out from such industries, but changes for further planning will be necessary. “In full consultation with your organisation and individual industries, we will determine what will provide the greatest impetus to production and exports, while at the same time providing a maximum return on the taxpayers’ dollars.” Earlier, the Prime Minister (Mr Muldoon) had told manufacturers he knew they were worried about the pos ;

sibility of export incentives being reduced or eliminated. “Export incentives are in the process of change from the old system to the new system and you have a guarantee that the new system will continue until 1985,” said Mr Muldoon.

“By that time the government will announce what alternative assistance is available to makers of manufactured goods.” Mr Muldoon said a National government would ensure that manufacturers could export, profitably to whatever market might be appropriate. “You can make investment decisions on that basis with total confidence,” he said. The Social Credit leader (Mr Beetham) said New Zealand had to return to an economy based on worthwhile returns and profitability, and had to turn away from policies that subsidised producers into long-term dependence. “For that reason, we have expressed our intention of replacing export incentives with lower personal and company tax scales and access to low-cost working and investment capital, as incentives to produce,” said Mr Beetham. “As such, of course, these incentives would be available for import replacement as well as encouragement of exports.”