Plastics report a ‘shock’

Press, 10 March 1982, Page 2

Plastics report a ‘shock’

The release of the Government’s decisions yesterday on the plastics industry report of the Industries Development Commission has come as a shock to the industry. The president of the Plastics Institute, Mr I. D. Ristrom, said in Christchurch yesterday that the decisions would have implications for many other industries already tfoder study or to be the subject of future studies. The Minister of Trade and Industry (Mr Templeton) said that the Government had endorsed the I.D.C’s view that tariffs should be used to protect New Zealand industry rather than a combination of import licencing tariffs. Licensing would be phased out over a six-year period during which tariffs on imported made-up plastic goods. -■ would remain moderately high.

Mr Templeton said that the Government realised that

for an industry which had grown up under a heavy mantle of import licensing protection the removal of this method of protection would cause trepidation. Mr Ristrom said that the industry had been under the impression that more talks between industry leaders and the Government would be held before the Government’s decisions were released. “Our main concern is that it appears the Government has cut short ongoing discussion with the institute,” said Mr Ristrom. The institute’s committee which has been involved in making submissions on the I.D.C. report would meet in Wellington today to consider, the Government’s decisions, he said. If the decisions were implemented there would “necessarily” be some reduction in the total number of jobs in the industry because some New Zealand-made

plastic products would be undercut by cheap Asian imports. “Some sectors will feel the pinch more than others,” he said. The institute had submit-, ted that the 150 km restric-

tion on road transport should be lifted, but the commission had said it was not in support of that. However, Mr Ristrom said that the Government appeared to have given some relief to manufacturers of some goods.