Concerns about plans to scrap NIES

The State Government has expressed concerns that the Federal Coalition plans to scrap one of the most valuable aids to business and industry in the State - the National Industry Extension Service.

Deputy Premier Ian Taylor has written to Opposition Leader John Hewson seeking clarification of the position outlined in his policy document.

"Dr Hewson says that responsibility for the NIES scheme, which assists businesses to improve their international competitiveness, will devolve to the States, saving the Federal Government $17.7 million," Mr Taylor said.

"This must be taken to mean that the States will be obliged to meet the full operating costs of the scheme.

"If Dr Hewson stands by this decision, it will seriously inhibit development in this State.  The local Opposition leader supports Fightback and therefore must support Dr Hewson's stand.  It is a disgraceful situation and totally unhelpful to local business.

"The Opposition would not want to underestimate the value of the scheme - industry in this State has more than doubled its number of management services in the past year."

Mr Taylor said 368 NIES services were approved during the year cost about $1.6 million.  All the research was showing that companies using the service were much more likely to be exporting that those who did not.

"One of the keys to helping our balance of payments is to increase our exports and one way we achieve this is to become more internationally competitive," he said.

A recent national evaluation of NIES by Price Waterhouse found that every category of the scheme was rated as good or of high value.  Of the participants surveyed, 55 per cent of firms exported in the most recent accounting period.  By comparison, only 26 per cent of non-NIES firms exported in the most recent period.

"Here in Western Australia, more than half of those companies identified as likely to benefit from NIES have now taken the opportunity to do so," Mr Taylor said.

The Deputy Premier said he was also seeking clarification on whether Dr Hewson planned for the Commonwealth would have any role co-ordinating the scheme and what the Coalition's intentions were regarding the bilateral agreement on NIES which was not due to terminate until 1995.

"NIES has become an essential service to many businesses in Western Australia and for a very small investment, it is a very positive tool to boost the economy," he said.

"The coalition plans to cut it off would be standing in the way of progress."