Industry uncertain

Press, 24 September 1983, Page 21

Industry uncertain

PA Wellington Better tax incentives and ways to transfer publiclyfunded technology into industry would develop research programmes and improve manufacturing efficiency, according to the Manufacturers’ Federation director-general, Mr David Walker. Speaking at a science and technology seminar in Lower Hutt, he said that the manufacturing industry was working in an atmosphere of increasing uncertainty — fickle markets at home and abroad, stop-go Government policies, agonising industry studies, the closer economic relations agreement, uncertain export incentives and the prospect of changes to the traditional protection

mechanisms. “What manufacturing needs is a shot in the arm to help it play its role in getting the economy going again,” he said. Investment plans for the next .18 months were almost non-existent, which meant that the upgrading of productive facilities to take advantage of improved technology had ceased. One way to upgrade private sector research and development would be to remove existing obstacles and encourage a free exchange of technical staff between the private and public sectors, Mr Walker said. The Government should also introduce incentives aimed at stimulating tech? nology transfer at all community levels, he said.

This could include a reappraisal of tax laws to encourage profits to be reinvested back into the enterprise in the form of improved technology, upgraded facilities, and research and development. As well, incentives to invest in research through a more liberal write-off policy were necessary, Mr Walker said.

One high technology company had transferred its research activities to Australia where it received $l2O write-off benefit for every $lOO spent, along with other forms of incentive. To survive internationally, New Zealand industry had to turn more to innovation, technology, and research and development, he said.