Restructuring urged

Press, 27 August 1983, Page 22

Restructuring urged

PA Wellington New Zealand industry must be further rationalised and restructured if the full benefits of C.E.R. are to be obtained, according to the chairman of the Goodman Group, Mr Pat Goodman. At the group’s annual meeting yesterday, Mr Goodman said the harmonising and liberalisation of investment policies between Australia and New Zealand was also necessary. He thanked the Prime Minister, Mr Muldoon, for the firm stand he had taken, but said liberalisation was equally important. “Under C.E.R. we are starting a new ball game. I don’t want to see the old rules applied, and see industry leg-roped and disadvantaged,” he said. Reconstruction had to be viewed with the AustraliaNew Zealand market in mind. What would be viewed as a monopoly or insular normally, should not be in this new context.

Mr Goodman went on to say less control was needed

in the milling industry because the Goodman subsidiary, N.Z. Floormills, Ltd, and other companies, were still operating under legislative controls introduced in the 19305.

Under C.E.R., these controls were not in the best interest of the industry, he said.

However, Mr Goodman had a different view of the textiles industry. The company, with reference to the Bonds N.Z., Ltd, subsidiary, looked forward to continued support from the Government, he said.

“The I.D.C. (Industries Ddevelopment Commission) review of the textile industry plan is a matter of grave concern. “If a political decision is made to accept the view that we should compete with Eastern countries we must accept an Eastern standard of living.” Bonds, he said, had substantially increased its profits compared with the first four months of the last financial year.

Investment in new plant, which meant some goods were being produced at prices lower than in 1979, had resulted in real savings, he said. Over-all results for the first four months were ahead of forecast and encouraging. “In spite of the freeze shareholders can expect a good performance.” Mr Goodman noted a name change of the New Zealand Bakeries, Ltd, subsidiaries to Quality Bakers, Ltd.

"Quality Bakers had a big influence on the rationalisation and reconstruction of the baking industry and has been instrumental in keeping it essentially New Zealand owned,” he said. He also noted that, since balance date, Goodman had purchased a 25 per cent holding in the transport and tourist TNL Group at a cost of $l2 million.

“We believe tourism will be a premier industry and a lot more will and can be done to foster greater growth in this sector,” he said.