Export incentive cut would be ‘devastating’

Press, 30 December 1988, Page 7

Export incentive cut would be ‘devastating’

GLEN PERKINSON

By

Many jobs and several million dollars of export income will be lost when the Government axes the industry export programme (1.E.P.), businessmen say. The president of the Canterbury Manufacturers’ Association and former Market Development Board member, Mr Bruce Fraser, said yesterday that next year’s termination of the 810 million incentive would be devastating for new, small industrial exporters. When asked about the move, the Minister of Ex-

ternal Relations and Trade, Mr Moore, said the incentive could be continued. Although he did not want to give manufacturers false hope, Mr Moore said that if an Audit Office report on the incentive proved positive the grant could be maintained. He said that if the report indicated it was worth while and was not being used simply to “cut companies’ own expenditure” then it could be saved. The incentive is due to end on March 31 next year. Mr Fraser said it

was one of the few Government grants that “did not offend General Agreement on Tariffs and Trade nations.” The incentive had helped many firms expand markets and staff. There would be reductions in overseas earnings and manufacturing staff numbers if it was discontinued, he said. The New Zealand Manufacturing Federation would lobby the Government strongly to maintain the I.E.P. — “but if the politicians don’t want to continue it then they won’t,” Mr Fraser said.