Textile subsidy ‘not abused’

Press, 28 May 1983, Page 21

Textile subsidy ‘not abused’

PA Wellington Woollen companies had not misused a multi-million dollar subsidy scheme designed to lower prices to consumers, the chairman of the Industries Development Commission, Mr Ted Tarrant,has said.

The subsidy is a bounty payable on woven wool fabric under the textile development plan implemented in 1980, which the commission had been re-

viewing. In a draft report on its review issued earlier this month, the commission said payments of $16.7 million were made under the

bounty scheme between July 1, 1980, and March 31, 1983. Mr Tarrant said that unfortunately a statement

made by the commission had been associated with' another observation in the’ report. No inference was \ intended by the commission ’ that anyone had done any-;' thing wrong. “To the commission’s' knowledge, there is no evi-

dence that any woollen; company has bounty to which it was not;; entitled.” 1 The total bounty paid, and •; this was not necessarily the;'

industry’s fault, had not; been as effective as hoped. However, the bounty still -• served a useful purpose in ! the transition period, he-; said. ;'

Public submissions on the--commission’s draft report;; will be heard in July, after which a final report will be ; made to the Government. .