‘Piecemeal’ aid to exporters

Press, 4 August 1983, Page 3

‘Piecemeal’ aid to exporters

PA Hamilton Assistance to exporters has been given in response to their political power rather than their need, says the leader of the Opposition, Mr Lange. Industries not yet born were the most seriously disadvantaged by this, he told the Seventh Exporters’ National Convention, at Wairakei yesterday. “In some ways this is one of the most serious consequences of the current industry assistance structure,” he said. Assistance was not structured to provide price signals to producers in conformity with national objectives of economic growth, rising incomes, increased employment, and greater social justice. So far, Government aid to exporters had been piecemeal and ad hoc, said Mr Lange. It would be a fluke if asisstance to various sectors was sufficient to offset cost disadvantages. Farming, manufacturing, and forestry received assistance, he said, but horticulture, fishing, tourism, and the services received very little.

A Labour Government would consider providing special assistance to the

tourist industry, he said. “The plan may aim to increase earnings from tourism by 50 per cent over a five-year period by targeting, say, the Japanese market,” he said. An examination of export assistance policies must also include a look at the New Zealand industries that supply New Zealand exporters and contribute to their costs, said Mr Lange. “Policies will be needed to ensure that supporting industries become more competitive. This will require them to invest in the most modern and advanced technologies,” he said. Industries serving exporters needed to develop sectoral reviews assisted by Government. “Future developments would be mapped out describing output volumes, investment needs, and employment opportunities. “Ultimately, the Government would have to decide whether the benefits to the nation from the assistance required from the Government would outweigh the costs to the nation,” said Mr Lange. Assistance to industry should be related to marketing performance rather than production alone, he said.