Manufacturer sees gloomy future

Press, 16 September 1986, Page 4

Manufacturer sees gloomy future

A gloomy outlook for manufacturing in the next 12 months was predicted by the retiring president of the Canterbury Manufacturers’ Association, Mr Bill Broadhead, at the association’s annual meeting in Christchurch last evening. Mr Broadhead said he could see more manufacturing being transferred from New Zealand to other countries, fewer manufactured exports, more unemployment and fewer manufacturing companies. While acknowledging that the Government had courage in sticking to its task of maintaining its economic direction Mr Broadhead said that since

the same time last year more than 1000 people had lost their jobs in 44 businesses in Christchurch. Inflation had come down but was still three for four times that of many of New Zealand’s trading partners. Interest rates had come down, but were still much higher than that of the nation’s competitors.

There had been more reductions in tariff levels without signs of spin-offs to the economy, and New Zealand still had a volatle exchange rate, said Mr Broadhead. Manufacturers and farmers had reached some understanding of each other’s problems.

“It is with regret, therefore, that we continue to read in the news media farmers’ demands on the Government to remove all tariffs on goods into New Zealand,” said Mr Broadhead.

A Government Minister had said recently that if it reduced all support measures to farmers, manufacturers’ costs and taxes could be substantially reduced.

In a reference to the president of Federated Farmers, Mr Peter Elworthy, Mr Broadhead said, “So if the farmers want a fight on the tariff issue, just let the Elworthys of this world continue their ill-informed cries for no tariffs.”