Manufacturers told to bear with Govt

Press, 24 September 1987, Page 2

Manufacturers told to bear with Govt

Political reporter In a blunt speech, manufacturers have been told by the Minister of Trade and Industry, Mr Caygill, that the Government’s policies have brought a season of despair for many of them.

Addressing a Manufacturers’ Federation convention: in Auckland* yesterday, Mr Caygill said the major changes.-fiitroduced had been welcomed, even applauded by many manufacturers. ■ “Yet, in many other respects the over-all climate, has not improved and many are- now-“asking, .have all these changes been, worth it?” . " Mr Caygill said he knew many firms were hurting and some had gone out of business. This gave him no pleasure. “Though it is certainly true that on occasions I have been tempted to do so, I have not dismissed you as whingers or moanerg.” As their Minister, he had been the manufacturers’ advocate at the Cabinet table, ensuring

that their views were presented and understood. Mr Caygill said he knew many manufacturers wanted a slower pace of change, more time to adjust to the threat of import competition. Assistance to match that given to other nations’ manufacturers was also sought along with pleas for more help with research and development, better depreciation rates, and lower taxes and A.C.C. levies. Most, if not all, manufacturers had asked for lower exchange and interest rates. Mr Caygill said the Government had been doing everything it could to reduce inflation which had fed appallingly high interest rates. This was holding back capital from flowing into Investment.

The Government would settle soon the long-term tariff policy. Mr Caygill said that the views of manufacturers would be taken into account as would those of other producers and consumers.

He indicated manufacturers would not get all they sought. “We cannot afford to create a favourable climate for manufacturing by picking the best assistance schemes that are available around the world if the price of assistance is relaxation of fiscal re-i straint and higher taxes or higher interest rates.”' The key adjustment for all sectors was to lower inflation and interest rates, said Mr Caygill. He challenged manufacturers to tackle the Australian market, where he said there were lower tariff barriers on average than in New Zealand. To maximise their opportunities for growth or even for survival New Zealand manufacturers had to be able to sell their products in Australia and elsewhere against international competition.