N.Z. firms are ‘slower’ on CER

Press, 16 July 1983, Page 23

N.Z. firms are ‘slower’ on CER

PA Wellington New Zealand companies had been slower to take advantage of the opportunities offered by the Closer Economic Relations agreement (CER) than Australian companies, said the economist, Suzanne Snively, in Jarden and Company's weekly report. There was a low response rate by manufacturers and importers to exclusive Australian licences and companies wishing to invest in Australia had been slow to become involved in the poli-tically-complicated applications process.

“This slowness . could be explained by factors outside CER such as the appreciation of the New Zealand

dollar against the Australian dollar and the still low level of economic activity in both countries,” she said. “Nevertherless, to gain full advantage from CER, New Zealand companies should already have begun exploring trading and investment opportunities in Australia or assessing their potential competitors in the domestic market.”

Ms Snively said the Australians had rejected a greater proportion of applications from New Zealand investors since the Labour Government took office in March.

Between April 1, 1976, and March 31, 1983, 380 applications were made by New Zealanders and of these 365,

or 96 per cent, were approved, three rejected, and 12 were withdrawn. But since March 31, 14 applications were submitted, with 11, or 88 per cent, approved, two rejected, and one withdrawn. Because of the Australian attitude in investment the Prime Minister, Mr Muldoon, directed that all Australian applications for investment in New Zealand be declined.

Between May 25 and July 1 applications from 20 Australian companies were declined, four involving takeovers of New Zealand companies, and 16 where the Australians wanted to set up business on their own account, she said.