Call for Govt protection of businesses

Press, 2 October 1987, Page 1

Call for Govt protection of businesses

Canterbury workers face contiriued job losses unless there is ah-Improvement in the economy, say the region’s business sectors. The number of people expected to. become unemployed soon;is uncertain, they said, but based on the New Zealand Institute of Economic Research’s business opinion survey for Canterbury for the June quarter, a third of all firms surveyed indicated their staff numbers would drop.

In the wake of the report’s release, the Canterbury United Council’s chairwoman, Mrs Margaret Murray, called on the Government to shield Canterbury’s businesses “and don’t let them go under.” She blamed the dismal outlook of the region’s business community on the Government’s “not listening to the United Council's assessments.” Under the Government’s economic restructuring, normally competitive businesses were going under, Mrs Murray said, t

The administration should look at protecting these competent businesses in the meantime.

“It is vital that these efficient producers don’t go under! They are able to compete under normal times. But we have to address the situation as to why they are relocating in Auckland. "It is imperative the Government now sets the climate for regional employment The downturn in Canterbury is what is sparking the growth in Auckland

— and that city cannot sustain that growth. Its services are unable to meet the demand,” Mrs Murray said. The United Council was doing its homework on the problems — the Government must do its, she 'said. ■ ■ .

The Canterbury- Manufacturers’ Association,, the .sector• most pessimistic in the institute’s report, said Canterbury industries were among the world’s best but they were working in the “wrong country.” The association’s director, Mr lan Howell, said the , report highlighted the association’s predictions of business deterioration. “We predict that unless we see the level of the dollar going down there will be a-continued reduction in employment,” he said. Mr Howell further criticised the report, saying that its predictions were based bn a New Zealand dollar round the midUS5Oc. The New Zealand dollar is at present trading about US65c. The Canterbury-Westland Retailers’ Association was no less harsh in its prediction for the next few months. The association’s president, Mr Mark Ballantyne, said further unemployment was Inevitable within the retailing industry. <! \ In spite of the trend among retailers, and wholesalers in the institute’s report that the. status quo would remain for the next few months, he predicted further: , unemployment ‘ ’ ■