Higher productivity urged

Press, 12 August 1985, Page 34

Higher productivity urged

By

MICHAEL HANNAH

in Wellington The Acting Prime Minister, Mr Moore, has told exporters to increase productivity rather than pray for a weak dollar to compensate for their loss of competitiveness as the dollar strengthened. Mr Moore agreed that exporters lost some of their advantage as the dollar rose, and the issue had been raised with him. “But I didn’t come into politics to pray for a weak dollar that would help us in Australia, or to pray for a

drought,” Mr Moore told a press conference after the Government caucus met on Thursday. He suggested the solution for exporters was for them to “get smarter” and to increase productivity, New Zealand’s access to Australian markets comes under the spotlight next week when three New Zealand Ministers take part in talks on the closer economic relations treaty in Australia.

The Ministers are Mr Moore, in his role as Minister of Overseas Trade, the Associate Minister of

Finance and Minister of Trade and Industry, Mr Caygill, and the Minister of Consumer Affairs, Mrs Shields.

. Mr Moore maintained yesterday that New Zealand exporters were still doing well in Australia. That opinion is qualified by financiers, who say exporters have maintained volumes in Australia, but have seen their profits take a dive as the New Zealand dollar has risen.

One banker told “The Press” this week, however, that many companies

perceived the strength of the dollar’ as a short-term phenomenon, and considered the dollar would ease later in the year, especially when the pressure on interest rates eased after the September tax payments were met.

As for future opportunities in Australia under C.E.R., Mr Moore singled out steel and textiles as requiring particular attention. Other issues to be discussed next week included bounties, harmonising of commercial laws, and packaging.