Protection urged by Repco chairman

Press, 3 November 1984, Page 25

Protection urged by Repco chairman

Auckland J Manufacturers cannot be expected to invest in the industry while there is uncertainty about ‘Government policy, the chairman of Repco Corn ‘N.Z., Ltd, Mr Neil Walford *Th d annual meetin S on ' “While the corporation does not appear to be seriously at risk as a result of the motor vehicle industry study, it does concern us that the Government seems finable to make a decision on the future of the automotive assembly industry in New Zealand,” he said. ’ “We are concerned that pertain Government trade ■policies could be damaging to the New Zealand economy. “While New Zealand depends largely upon its agri-

cultural and resource-based industries for export earnings, the majority of employment opportunities come through our manufacturing industries.” Mr Walford said removal of all forms of quantitative protection in favour of a tariff-based economy would lead to a marked growth in imports and to serious unemployment. “The increasing movement towards a free trade policy hardly seems appropriate in a highly protectionist world.”

Mr Walford said moves to a free trade policy had to be handled carefully to avoid irreparable damage to the country’s manufacturing base. “Major countries around the world are without exception highly protectionist.

“They endeavour through some form of control to restrict access to their home markets for certain products.”

Mr Walford said it was important that New Zealand maximised its opportunities under C.E.R.

Repco trading in the first three months of the financial year was ahead of budget. “Providing there are no unforeseen changes in Government policy that would cause a downturn in business, then we are confident the company will report a strong profit performance for the December half and that this profit trend should continue through the full financial year.” Repco’s ?7.9 million profit was well ahead of its forecast $6.2 million.