Assistance to tourism short-term measure

Press, 6 October 1987, Page 1

Assistance to tourism short-term measure

By

PETER LUKE,

political reporter The Minister of Employment, Mr Goff, has rejected an implication that tourism received more favourable treatment from the Government than manufacturing. Mr Goff was responding to comments made by the director of the Canterbury Manufacturers’ Association, Mr lan Howell, who said that Mr Goff was living in an economic fantasyland. Mr Howell pointed to the 22 per cent first-year depreciation for big tourist accommodation, comparing this with the 2 . per cent allowed i manufacturers for their factories. Mr Goff said last evening that this assistance to tourism, and the Government grants of about 10 per cent'(for some hotels, would end next March. They had

been short-term measures, designed to ease a severe accommodation bottleneck which was costing New Zealand millions of tourist dollars. Mr Goff said that New Zealand manufacturers were the most protected in the 0.E.C.D., with more than three times the average level of protection. Tariffs were being phased out, but relatively slowly and with regard to employment. Import licences were being phased out more rapidly, he said. “New Zealand has suffered for many years from a cost-plus mentality with no incentive to look at more efficient and productive ways of doing things.” Mr Goff said he would be more than happy to talk to Mr Howell, but added that he normally received such Invitations

personally, not through the columns qf a newspaper. Citing figures from the Christchurch City Council’s townplanning committee, Mr Goff pointed to an increase in the number of jobs in Christchurch, from 104,085 to 114,685, since 1984. His rounded figures showed falls in manufacturing (about 200), public utilities (50), and personal and community sectors (900). But there were increases in construction (800), trades, restaurants, hotels (5000), transport (2300), business, finance insurance (3000), and forestry (200). Unemployment had risen since 1984 because the growth in the labour force had exceeded the growth in jobs, but Christchurch was hot the worst affected area, said Mr Goff.