‘Critical years’ for footwear industry

Press, 8 November 1984, Page 23

‘Critical years’ for footwear industry

The next few years would be critical for the footwear industry if the Government continued the policy of opening the New Zealand market to imports, the chairman, of M. O’Brien and Company, Ltd, Mr M. A. Stevens, told the company’s annual meeting yesterday. Rising imports would mean the company competing against labour forces overseas which did not have the same standard of living or benefit that New Zealand workers did, Mr Stevens said. .“I believe the next few years will be critical for the footwear industry, as it will be for many others.” The Government should look carefully at the effects of a policy that had been drawn up with little consideration for the New Zealand worker or for business and shareholders, he said. Although the first three months of the trading period were traditionally quiet, the company had made a substantial turnaround when compared with last year when there were production problems and a

raw materials shortage. The company had traded profitably in the first quarter and forward orders were healthy. There had been big changes, in the company’s production, marketing, and product range, and it was producing almost twice as many shoes a day as in 1982. O’Brien’s had a substantial share of the sports shoes market, but this dominance had not been achieved without the loyalty and dedication of the staff, and there had been production and materials problems. In reply to a question from a shareholder, Mr Trevor Ivory, about shoe shortages, the deputy chairman, Mr G. W. Hunt, said that the company was now running three satellite firms to help production at the main factory. The chief executive, Mr Steve Brazier, said one section of the main factory was working between 18 and 20 hours a week, and other sections were working a nine-hour day.