Govt attitude to plan ‘crucial’

Press, 7 May 1983, Page 8

Govt attitude to plan ‘crucial’

PA Wellington Dire consequences for car-component manufacturers could flow from the Industries Development Commission plan for the motor industry, says the president of the Component Manufacturers’ Federation, Mr Robert Sebelin. The plan was released on Thursday by the Government, which has requested written submissions from interested groups by June 3, before the making of final decisions. Under the plan, component manufacturers will lose their total protection against imports under a system of “mandatory deletions” from imported packs of car components for local

assembly. Mr Sebelin said his federation’s executive would consider the report, but the prospect of having to respond by June 3 was a little daunting in view of the fact that the report covered so many facets. The Government’s attitude to the recommendation to reduce tariffcs on c.k.d. (completely knocked down) packs and c.k.d. chassis, was crucial, he said. This recommendation included the rider from the I.D.C. that “if it is not possible for the Government to accept this recommendation the balance of its recommendations should be referred back to it.”

“It is incumbent on the Government to make its intentions known before asking for comments,” said Mr Sebelin. The secretary of the Coachworkers’ Union, Mr Graeme Clark, agreed that the component industry could be hit hard. Referring to the I.D.C. statement that if local component manufacturers could not compete their resources could be better redirected, Mr Clark said that there were already 100,000 unemployed in need of redirection. He could not see where the industry’s workers could go in exchange for alleged benefits of so-called cheaper components from overseas. Both motor-vehicle manu-

facturers and dealers have called on the Government to act quickly. Mazda’s chief executive in New Zealand, Mr Colin French, urged the Government to follow the I.D.C. recommendations and reorganise the motor industry. “Our advice to the Govenrment is to implement the report and do it quickly,” he said. Mr French said that the recommendations gave advantage to the car-buying customers by stopping prices from rising so rapidly. He said that only two component manufacturers would be seriously affected by the report, and was optimistic about the future of the industry.