N.Z. shippers, to pay more

Press, 25 July 1984, Page 8

N.Z. shippers, to pay more

PA Wellington The immediate higher shipping freight rates after last week’s devaluation are an example of increased costs that will result from the Government’s move, said the Manufacturers’ Federation’s vice-president, Mr Graeme Alexander, yesterday. “The Union Steam Ship Company has raised its cargo rates to Australia 14.45 per cent, New Zealand Shipping Corporation rates are up 12.23 per cent, and the Forum Line has increased its rates up .to 18 per cent,” said Mr Alexander. “When the Government talks of removing manufacturers’ export incentives these are some of the factors that must be taken into

account," he said. . “The alternative will be to hamstring the present drive for more manufactured exports and expanded employment in New Zealand. “Apart from the automatic boost in raw material prices, manufacturers would incur other cost increases from overseas plus the degree to which wages and other internal costs were allowed to rise to compensate,” said Mr Alexander. “Unless the new Government takes a firm line internally the devaluation will be virtually neutralised. Certainly it must be very careful in its proposed review of export incentives or employment and the balance of payments will be worse off.

“It has the opportunity to use the devaluation as a positive force for export and job expansion or it can subtract existing export incentives to a degree that we are back at square one. “It is inevitable that the full benefits of the devaluation will be eroded and export incentives should be used to compensate for that erosion.”