Manufacturers support policies

Press, 11 June 1987, Page 17

Manufacturers support policies

PA ... / Wellington ~.. The National Party’s glonal development policies have the support of manufacturers in the provincial areas of the lower North Island, said the Wellington Manufacturers’

Association president, Mr Rowland Crone. National’s proposals for an accelerating depreciation allowance and better tax deductions for research and development expenditure would offer immediate relief to provincial manufacturers, he said. "We need a band-aid on the economy.” While the Minister of Trade and Industry, Mr Caygill, said recently a substantial fall in interest rates would stimulate investment in the regions, Mr Crone said that would be a long time coming. “Under the current monetary policies, overseas experience already indicated it would be several years before

New Zealand’s interest grates / fall , to internationally ' competitive levels, and I believe we can’t afford to leave our employees rusting on the scrap heap in the meantime.”

The tax-deduction proposals for research and development would help manufacturers move into new areas of production quickly. It was of no help to tell a manufacturer the regions would promote their own fishing, forestry and tourism industries, he said. “What does he do with his employees and his investment in land, plant and buildings? “In the end there is a cost to Government either in the form of a carrot to encourage both new investment or reinvestment in the regions, or pay people to be unemployed. I know where I would rather see the investment go,” Mr Crone said.