Bank: Manufacturing potential in Aust.

Press, 31 August 1989, Page 40

Bank: Manufacturing potential in Aust.

Wellington reporter Manufacturing aimed at the Australian market is identified as an area of strong potential growth in the August National Bank “Business Outlook,” published yesterday. "With a low inflationary'

environment, and substantial micro-economic reforms and restructuring already in place, New Zealand manufacturers will enjoy substantial cost advantages over their Australian counterparts over the next decade,” the bank said.

1 “A pro-active New Zealand i Government might choose to i encourage exploitation of this advantage at an early stage.” I This could be achieved with policies designed to make new investment funds ; more readily available. There was no suggestion

that a return to protectionism or subsidies was desirable, “Australia is the most protected market in the world, and we have special access to it,” said an economist with Infometrics, Dr Gareth Morgan. "What we haven’t got is

bucks,” he said, referring to the bank’s report detailing the lack of new investment funds in New Zealand. However, the National Bank’s monthly survey of business sentiment found that manufacturers remained wary about export prospects,