Ceramco still behind Govt

Press, 21 August 1989, Page 13

Ceramco still behind Govt

PA Auckland Ceramco Corporation directors still support the Government’s liberalising reforms, but the chairman, Mr Alan Gibbs, told the annual meeting in Auckland that the job was only two-thirds completed. He called for urgent labour market deregulation to make inroads into unemployment, citing two cases where companies with which he was associated could not attract staff because welfare payments outweighed the potential wages. "Unfortunately, the new Government leadership does not even pay lip service to labour market reform and the introduction of more productive flexible working arrangements on a decentralised basis which would Increase productivity.” Mr Gibbs said he was not talking about lower wages or dispensing with unions. Labour market reform was all about more productive working arrangements and a higher wage economy — about laws that promoted democratic and responsive unions, he said. Ceramco was struggling with one of the effects of the Government’s failure to recognise the importance of allowing the reward and in-

centives for productive labour to outweigh the attractions of the unemployment benefit.

Ceramco's Bendon operations in Whangarei and Huntly, two high unemployment areas, could not attract suitable staff, he said.

Despite the problems yet to be faced, Mr Gibbs said he was optimistic about New Zealand in the 19905. "New Zealand has a good chance of achieving the best performance we have seen for decades." Ceramco had largely completed its restructuring and would now concentrate on developing its core business areas: Bendon, New Zealand China Clays, Gibson and Paterson and the distribution of imported consumer, industrial and electronic products. Bendon has just purchased an apparel company in Australia which had the Vanity Fair licence, which would immediately double Bendon's business in Australia. Bendon was already operating ahead of production, sales and profit targets this year. After the meeting, Ceramco’s managing director, Mr Charles Bidwill, said the company’s first quarter performance was good, but real growth was not expected until early next year.