Free access resisted

Press, 19 May 1984, Page 3

Free access resisted

The New Zealand apparel industry must continue to fight the freeing of access to the domestic market, members of the Clothing and Footwear Institute were told at its national conference in Christchurch yesterday. The managing director of Lichfield New Zealand, Ltd, Mr Chris Pickrill, said he had “grave concerns” that a big enough part of the domestic market would be available for the New Zealand industry to build a more productive and profitable future.

In the past the New Zealand industry had been guaranteed the domestic market by protectionism, but it now faced the threats

of competing with Australian manufacturers from 1988 and the still unresolved question of access of goods from countries in the South Pacific Regional Trade and Economic Co-operation Agreement.

It was this latter “threat” which gave Mr Pickrill the most concern.

Local manufacturers were guaranteed 90 per cent of the domestic market in the Industries Development Commission’s original report, but it was now uncertain whether this 90 per cent included imports from Australia and Sparteca countries, he said. In time, local producers would also become soley dependent on tariffs for pro-

tection against other imports. The theme of the conference was "Productivity for Survival,” but “in such a scenario the issue of increased productivity palls into insignificance,” Mr Pickrill said. After submissions to the I.D.C. the apparel industry was named an area to be encouraged and assisted. Many companies then embarked on capital investment programmes to modernise their equipment and increase productivity, he said.

“Now we find in the latest review that the commission has proposed further measures to reduce protection levels and increase ac-

cess for imported garments, including prospects of an unlimited volume of imports which could arrive in New Zealand from Sparteca countries.” “It is in this climate of continued uncertainty that we are expected to make the necessary investment decisions to further increase productivity,” he said. If increased productivity was to the key to business survival the Government had to provide a sound and stable economic and political platform for growth, he said. This would have to include a guarantee of a viable slice of the domestic market on which manufacturers could build for export expansion.