Manufacturers seek facts on downturn

Press, 14 January 1987, Page 20

Manufacturers seek facts on downturn

P/& Wellington Concern that New Zea- ( manufacturing is put at risk has pted the country’s facturers’ associate commission a sur- ■ . ' ' ! president of the Wellington Manufacturers’ Association, Mr Rowland Crine, said 300 companies would be surveyed by the Institute of Economic Research. The results should be available in Msrh. The survey will follow one completed by the institute into the effects of the: Government’s freemarket policies on manufacturing. That was re-

i leased last month and j concluded that the indus- ; ‘ try was at risk as it was .: i being squeezed by high ; inflation and exchange rates as well as a big reduction in export activ- ; ity. 1 This survey would ] quantify the extent of the damage, he said. < Mr Crone warned that I there were indications i that some big manufactur- ] ing companies with an i emphasis on exporting were considering moving 1 overseas. Approaches had t been made recently from < Australia to attract manu- j facturers with favourable f investment packages. t “After'years of steadily 1

growing export volumes, manufacturing exports have how shown the first significant. decline since 1978 — down 17 per cent' in the June, 1986, year and 6 per cent .in the September, 1986, year,” Mr Cftpe said. Mr Crone said the Gov* ernment’s stance, of neu< traiity was “internationally naive” and had the potential to damage the industry seriously. “Overall we support the broad thrust of the Government’s policies, . but .each element of these policies must work together and in sequence if the economy is to benefit,” he said.