Glassware industry protection retained

Press, 16 June 1983, Page 3

Glassware industry protection retained

PA Wellington A “realistic” level of protection will be retained for the glassware industry, particularly in the short term, according to the Government yesterday. The Minister of Trade and Industry, Mr Templeton, made public the Glassware Industry Plan approved by the Government. Detailing decisions taken by the Government on the industry study report, Mr Templeton said that the plan was based on the industry’s potential for growth.

The aim of the plan was to enable the industry to adapt over six years to the point where it was broadly internationally competitive, given adequate levels of tariff protection, he said. The principal features of the plan are three years of tariff testing, culminating in a new tariff structure, followed by a further threeyear phase-out of importlicensing protection. The Government has agreed to remove the tariff preferences accorded to developing countries on the range of glassware items considered in the study and to confirm the investment allowance for 1982-83.

The three glassware manufacturers covered by the plan are Crown Crystal Glass, Ltd, of Christchurch, Leonora Glass Industries, Ltd, of Naenae, and Hokitika Free Form Glass Company, Ltd. Mr Templeton said Crown Crystal Glass had already undertaken significant product rationalisation through market pressure. Leonora Glass Industries and Hokitika Free Form Glass had each established a niche in the marketplace through their ability to meet specific demands. An investment allowance of up to 40 per cent would be granted to the three manufacturers for expenditure on new plant and machinery incurred in the 1982-83 year. Heat-resistant glassware would be exempt from import licence from July 1 this year because it was no longer made locally. It was defined as glassware commonly used for cooking purposes, such as casserole dishes, frying pans, sauce.pans, and ramekins. Mr Templeton said glass•ware production incorporated a high level of local content and technical expertise, and made a significant contribution to foreignexchange earnings and local employment.