Private enterprise flourishing

Press, 11 October 1982, Page 30

Private enterprise flourishing

Private enterprise is flourishing in Canterbury if the standard of entries in the Enterprise New Zealand competition is any gauge. Nearly 100 new jobs with good prospects of more, have been created by the eight Canterbury entrants. The president of the Canterbury Chamber of Commerce, Mr J. M. T. Greene, says that while longer established' industries tend to decline, new industries are more attuned to the problems facing Canterbury. Industry constraints such as freight costs, the size of the local market and energy disadvantages have taken their toll on South Island businesses.

Mr Greene says there has been a change in emphasis and new businesses are now

using Canterbury's advantages.

The two main factors which fall into the latter category are a stable work force and the availability of reasonably priced industrial land.

"The new industries are significantly being geared towards export," Mr Greene says.

Export is one area in whiclY the Canterbury chamber has lobbied, especially for more flexible air services.

“More regular, direct air services, particularly to Melbourne, are needed." Mr Greene says, and the extensions to the runway at Christchurch Airport will help considerably. Wage costs

The main purpose of

Enterprise Week is to demonstrate the need for companies to make profits, create jobs and eventually enable living standards to improve.

A special report cbnductd by the Chambers of Commerce (State of Business Survey 1982) shows that smaller businesses appear to be suffering financially because they are not passing on costs to the selling price as quickly as the larger firms. "The average wage per employee of small businesses increased by 21 per cent in 1981, but the operating profit per employee increased by only 10 per cent,” the report noted.

Mr Greene warned that this is an area which must be of major concern to smaller firms.