Governing committee report

Press, 14 October 1985, Page 22

Governing committee report

The past year has been one of considerable interest and challenge. The new Labour Government has continued to make farreaching economic changes with the aim of making the New Zealand economy more market oriented.

Adapting to these new economic conditions has no doubt provided a considerable challenge to the membership. The Government has also been active in promoting a wide-ranging programme of reform in many other spheres. It has introduced the goods and services tax legislation to radically reform New Zeqland’s taxation system.

It has introduced legislation to reform the laws relating to restrictive trade Sctices, mergers and covers and price control, with the Commerce Bill which is presently being considered by Parliament’s Commerce and Marketing Select Committee.

It is also presently drafting a package of consumer protection legislation setting up a new Ministry of Consumer Affairs, revising the 1908 Sale of Goods Act and providing for a Fair Trading Act which will also incorporate product recall legislation. Your governing committee has been active in considering the implications of the many proposals for reform emanating from the Government.

It has been involved in the discussions regarding the reform of import licensing and tariffs.

It has scrutinised and made submissions on the Goods and Services Tax Bill and the Commerce Bill and will be doing the same in respect of the consumer protection legislation.

Your governing committee has also maintained close liaison with Ministers of the Crown in the Consumer Affairs, Health and Trade and Industry portfolios to ensure that the G.M.A. viewpoint is heard in the early stage of Government decision making. To consider all these new matters as well as the many other traditional matters of concern the committee has met six times in the past year. Mr Ernie Newman resigned as executive director in February this year to take up the position of director of the Otago-South-land Manufacturers’ Association. He was replaced by Mr Peter Tritt in May this year. There is a Research and Development Working Group, which (among other things) was responsible for contributing to the P.A. Management Consultants Study, on behalf of the Department of Scientific and Industrial Research, to identify potential technological development in the New Zealand food industry.

The results of that exhaustive study are to be presented to the conference today by P.A. Management Consultants and the D.S.I.R. The G.M.A. has continued to hold both formal and informal dialogue with the wholesale and retail trade.

The Grocery Industry Council provides an opportunity for discussion (three times a year) between three representatives each of the G.M.A., the Wholesalers’ Federation and NARGON. However, the exclusion of the retail chains from the G.I.C. continues, in our view, to reduce its effectiveness as a discussion forum for the whole of the grocery industry. The governing committee has therefore decided, for the first time, to extend an invitation to representatives of the retail chains to attend this conference, to ensure that, from the G.M.A.’s point of view, there is adequate dialogue with the retail chains.

The G.M.A. was represented at the annual conference of the Wholesalers’ Federation and NARGON which were held in May this

year. Our two vice-presi-dents and new executive director attended the wholesalers’ conference in Rotorua and our two vicepresidents attended the NARGON conference in Hastings. Attendance at those conferences and attendance at our conference by representatives of those organisations are a very useful means of communication within the grocery industry., Contact is also maintained with Government departments and organisations within New Zealand such as the Association of New Zealand Advertisers, Consumers’ Institute, Employers’ Federation, Focus New Zealand, New Zealand Food and Beverage Exporters’ Council, Retailers’ Federation and Tobacco Institute.

Our president has continued to represent the G.M.A. on the Council of the New Zealand Manufacturers’ Federation.

The director-general of the New Zealand Manufacturers’ Federation will be addressing the conference to give an outline of the issues with which the federation has been concerned over the past year, the principal issue being the reform of import licensing and tariffs. The Government’s decision to end import licensing and to reduce tariffs above 25 per cent came after many months of discussions between the federation and Government Ministers, following the release of a discussion paper that proposed (among other things) the rapid introduction of a flat tariff of 25 per cent. Members were kept informed throughout of all developments in this area.

The main tasks that now lie ahead are the provision of adequate emergency protection authority legislation and the elimination or compression of developing country preferential tariff rates. Both of these will become crucial factors once import licensing ceases to provide any protection.

We have also continued to maintain a close relationship with the Keep New Zealand Beautiful Council with our new executive

director representing the G.M.A. on the Industry Committee.

It is proposed that our executive director will offer himself for election to the council’s board of management at the next annual general meeting.

The importance of continuing to support financially the Keep New Zealand Beautiful Council cannot be over stressed. The alternatives, such as a packaging tax, are much worse.

It is likely that the year ahead will see as much change and provide as many challenges as the year that has passed. In that event, the need for an organisation such as the G.M.A. is as great as ever.