It’s people that really matter.  “Our ability to change in response to outside pressures has enabled our nation to survive and prosper. The changes in our world are taking place faster than ever before. While we must continue to develop, it is important that we ensure the directions we take as a society are in accordance with the principles that our people hold”. Rt. Hon. Rob Muldoon, Prime Minister of New Zealand.  FREEDOM OF THE INDIVIDUAL WITHIN OUR COMMUNITY.  National's principles are clear... protection of the freedom of the individual; support and care for the family; Concern that the community is capable of responding to the needs and aspirations of its people. Allied to this is the need to ensure that our nation is Strong enough to protect the integrity of our own people and the people of the nations near to us.  THE INDIVIDUAL IS  THE KEY.  New Zealand's greatest resource is the individuals who make up our nation. It is how individual New Zealanders use their talents and abilities that will determine the country's future in the 1980s.  National's aim is to provide an environment that will encourage and support all New Zealanders with their different hopes and goals, and protect their right to participate in and help direct the future of their nation.  National believes that personal and political freedom must be the basis of our society. This is the only way that men and women can live lives worthy of their talents and human dignity.  Individuals must be encouraged to become more involved in decision making at all levels of society. Our democratic system is founded on the principle that individuals have the right to voice their opinions on issues that concern them. These voices must be heard.  Equally, individuals have a responsibility to become more involved in the decisions that effect them. Each one of us must be prepared to be accountable for the effect of our actions  on our neighbours.  KNOWLEDGE IS THE  DOOR TO FREEDOM.  The key to further involvement of the individual is knowledge, and National is committed to keeping the people of New Zealand informed and involved. National recognises that only in this way can the critical choices facing New Zealand in this decade be resolved satisfactorily.  National also recognises the individual has rights only a Government can protect; the right to equality of opportunity; the right to equality of access to society's facilities; the right to privacy; the right to security of person and property. These rights are always worth protecting.  Every day new opportunities open up for each of us. New technology has opened doors to jobs that were inconceivable even ten years ago. National will ensure that every New Zealander continues to have access to new Opportunities for self development and fulfillment.  THE FAMILY IS OUR SOCIETY'S STRENGTH.  The family is the cornerstone of New Zealand society.  National is committed to strengthening and protecting the family. But, at the same time, National recognises the family as an area of society which has undergone significant changes in recent years.  Just as we have seen a diversification in the options open to the individual over the last decade, so have we seen diversification of the traditional' family unit. Such changes have been the natural response to changes occurring throughout society, and have led to a more flexible approach to raising children.  Together with community organisations, National will continue to ensure that every family is adequately housed and that every family has access to the educational and health facilities that their children need. National will also take steps to provide a stable environment for our children.  National believes the task of raising children is the most important of any society undertakes. It is a responsibility demanding much of our resources and time.  Our children are not only our most creative asset, they are also our contribution to the future.  OUR COMMUNITY IS OUR PLACE OF BELONGING.    There are many times in our lives when we must call on the assistance   of our community; when we are very young, sick, unemployed, disabled   or very old. New Zealanders have responded to this by building a   welfare system envied by much of the world.    National is committed to ensuring the high standards of our health and   social welfare systems and the excellence of our educational system   are maintained. National is also determined that every New Zealander   has equal access to these facilities.    One major criticism of our welfare system has been that we have   encouraged people to look to the State for assistance before they look   to themselves. New Zealand's welfare programme must be adaptable and   should encourage innovation and participation by the community.    Through the Department of Maori Affairs, National has implemented   alternative systems such as Tu Tangata. This programme has enabled the   Maori people to pinpoint their needs, while the Government continues   to assist and provide finance. Efficiency can only be increased by   using the knowledge and expertise already available in the community.  Our communities are our place of belonging.  National will continue to ensure that all members of the community are adequately cared for. At the same time National will ensure that the most efficient means of using the community's resources is constantly tested.  OUR NATION IN  THE SOUTH PACIFIC.  New Zealand is a young nation. But we are beginning to develop our own identity from discovering our potential.  Our task in the 1980s is to establish our nationhood in the Pacific.  National believes that the role of the Government is to be strong in the affairs of the nation, maintaining the economy, the rule of law, and defence. These are areas where only a Government can act, and are crucial to our survival as a nation.  OPPORTUNITIES.  In the last ten years the most dramatic impact on New Zealand as a nation has been made by the oil shocks. They have not only increased the price of oil, but made frighteningly obvious the fact that we cannot rely on other nations for our energy supplies. Fortunately, New Zealand is energy rich, and National's development of our resources will ensure our quality of life.  New Zealand has also had to diversify its trading relationships following the entry of Britain into the EEC. Again we are fortunate because the Pacific Basin is one of the greatest growth areas in the world. We are only just beginning to use the opportunities that exist around us.  National has already encouraged success in this area by opening up markets in the Pacific, South East Asia, Middle East and North and South America. We're also working towards a closer economic relationship with Australia  A COMMITTMENT  TO OTHERS.  National will continue to take seriously our responsibility to our people and to other people in our part of the world. We can play a responsible role in the world by acting as a bridge between the industrial North and the undeveloped South; supporting our allies; and seeking moderation and conciliation in world affairs.  FUTURE CHALLENGE.  New Zealand is well endowed with natural resources, not the least of which is the ability and courage of our people. We are capable and adaptable and we have a future. The challenge that each one of us must respond to is to ensure that the future is the best possible one. It is the sort of challenge that New Zealanders thrive on.  ENCOURAGING GROWTH THROUGH MODERN SKILLS AND TECHNOLOGY.  We’re already reaping extra rewards from the land.  "The Agricultural Industry is the blood of the New Zealand economy. It provides over 70 percent of our export income. It provides direct employment for some 159,000 persons and indirectly about four times that number in the servicing industries.  New Zealand's agricultural efficiency ensures our continuing prime position in a food hungry world." Rt. Hon. Duncan MacIntyre, Deputy Minister, Minister of Agriculture.  AGRICULTURE, A KEY  IN NATIONAL'S  GROWTH STRATEGY.  Though distant from world markets we have natural benefits in climate and soils. This, along with technology, innovation and the determination of those involved in the farming industry has kept us competitive in price and quality and to the forefront of world markets.  The volume of production from our farms is now increasing at a rapid rate - up by 17.5% since 1978. National intends to maintain and build on this growth momentum. We believe the industry provides the greatest scope for increased export earnings, employment opportunities and growth in the regions.  Since 1976 farm support policies have moved progressively away from subsidised assistance and towards incentives based on production.  We will continue with production based incentives as the main thrust of agricultural support policies.  We will build farmer confidence through price support policies.  But we believe the individual farmer wants to be left to make his own management and investment decisions.  We will ensure that investment funds are available to maintain the growth momentum.  A 6-YEAR SUCCESS  STORY AND  STILL GROWING.  National's agricultural policies have been very successful over the last six years.  Successful development through the Land Development Encouragement Loans scheme (Landel) and the Livestock Incentive Scheme in particular has lead to growth in our livestock numbers. Sheep numbers have climbed from 55 million in 1975 to an estimated  71 million in 1981.  Through the Landel scheme alone over 930,000 hectares of land are currently being developed. When fully productive this land will carry an additional 4.5 million stock units, the equivalent of 1,300 new sheep farming properties.  National will introduce a replacement scheme for Landel.  National has promoted land settlement. Over 11,000 farmers have purchased their first farm in the last five years - over 6,000 with financial assistance from the Government, through the Rural Bank,  Lands and Survey and Maori Affairs Departments. The quality of our young farmers through education and experience is an important contributory factor in the high production levels which are being attained.  NATIONAL'S POLICIES ARE HAVING A POSITIVE EFFECT ON RURAL COMMUNITIES.  The number of farm holdings has increased from 67,000 in 1975 to 71,500 in 1980, and the number of people engaged in agriculture (on farm)has also increased from 143,000 to 159,000.  A Rural Education Activities Programme has been pursued since 1978 and flexible staffing schedules have been introduced for rural schools. The Tied Accommodation Home Ownership Scheme; the  financing of farm workers into stepping stone units; and increasing diversification all assist the development of rural communities.  National will also continue to encourage local authorities to allow for sensible rural subdivision and for a wider range of rural activities.  ENCOURAGING GROWTH  THROUGH  MODERN SKILLS  AND TECHNOLOGY.  GROWTH TARGETS  WITHIN OUR REACH.  In the June 1981 year New Zealand earned over $4,400 million from agricultural exports.  But we can do much better. It has been estimated that the potential exists to lift this to more than $6000M in 1981 money values. Growth at this level will mean that there will be continued growth in employment opportunities both on farm and in associated transport, processing and servicing industries. Our target is 30,000 jobs on-farm and an additional 120,000 associated jobs in rural towns and cities over the next ten years.  AGRICULTURE WILL  CONTINUE TO GROW  WITH NATIONAL.  National will ensure that agriculture maintains its role as the key overseas exchange earner through the 1980's. Even under the most optimistic growth predictions for other sectors, agriculture will still be producing well over half New Zealand's export income in the 1990's.  New Zealand’s artists are among the most creative in the world.    I  "National wants artists to enjoy freedom and have the opportunity to express their individuality.  National will continue to encourage, support and conserve the creative and performing arts." Hon. Allan Highet, Minister of the Arts.  FOSTERING OUR  CULTURAL HERITAGE.  Every dimension of growth is important, every facet needs to be fostered - our cultural heritage is no exception. The maturity of a nation is reflected in the recognition it gives its cultural identity.  Under National that recognition is being given. Individual involvement in the arts is greater than ever before, and the creative talents of New Zealanders, long since recognised in our own country, are being acknowledged throughout the world.  BIG FUTURE  PROJECTED FOR FILM.  Our film makers are responding to new challenges. They are demonstrating the relationship of the arts to everyday living  - whether it be to poke fun, express the turmoil and fascination of the era, tweak the nose of the establishment or simply to reflect the New Zealander at home. The results show in the level of success achieved both at home and overseas. Sales of "Goodbye Pork Pie" alone already extend to more than 30 countries.  The New Zealand Film Commission contributed substantially towards these successes. Established under National in 1978, it has provided vital finance and support for our film makers.  In line with National's philosophy of encouraging free and open competition wherever possible the exhibition and distribution of films has been delicensed.  OUR ARTISTS ACCLAIMED.  New Zealand performers and exhibitions of New Zealand arts and crafts are being accorded the international recognition their quality occasions. Our art is in demand.  The success stories are too many for all to be listed but highlights include:  • Our own Kiri te Kanawa, who is acknowledged as one of the world's foremost sopranos.  • The New Zealand Symphony Orchestra which is internationally recognised.  • Split Enz whose international following grows and grows, while Mi-Sex continues to draw ecstatic audiences in Australia.  • Our dance and theatre groups which have captivated audiences in Australia, the United States and the United Kingdom.  • The National Band of New Zealand, the Continental Airlines Brass Band and the City of Wellington Pipe Band all of which have performed with distinction overseas.  • The Roger Fox Big Band whose performance at the Montreaux Jazz Festival was widely acclaimed.  • Our Maori artists who made an impressive impact on the South Pacific Arts Festival in Papua-New Guinea.  • Sam Neill and Nyree Dawn Porter who have established themselves as international film stars.  • Janet Frame and Maurice Gee as writers of international repute.  CRAFTS USE OUR  NATURAL RESOURCES.  Our crafts provide a creative outlet for many thousands of New Zealanders who make valuable use of our natural indigenous materials, such as wool, clay wood, transforming them into aesthetically pleasing works of art. They provide a link between man and the natural environment.  New Zealand expertise has reached such a level of excellence that overseas artists come to learn from our master craftsmen. At the same time New Zealanders are practising and learning too, and gaining immense satisfaction from this process. Ceramics, pottery, weaving, sculpture, painting, printmaking, woodwork and jewellery all play an important part in our cultural collage. In addition, our art and craft works are valuable exports. As well as supplying our cal markets, increasing amounts of our work are being sold to tourists with the added advantage of earning that valuable overseas dollar.  SUPPORTING THE ARTS.  National will continue its support and encouragement of the creative and performing acts.  Lottery Board and Government grants assist crafts, opera, literature, music, ballet and dance, mostly through the Queen Elizabeth II Council, which is respected by the National Government as autonomous, along with the Maori and South Pacific Arts Council and the various Regional Councils.  This year the Arts Council has been allocated over $4 million.  In total about $11 million has been allocated for cultural development for  1981/82.  Financial assistance giving additional incentives for creativity include a scholarship, an award for achievement, and a variety of fellowships for authors; and a demonstration recording scheme for rock groups. For Maori and South Pacific Arts, a Council has been established to promote and conserve our Polynesian heritage.  National wants private sponsorship of the arts to continue; we believe tax concessions on donations provide a positive thrust in this direction.  We will also continue to encourage the provision of housing and related facilities for the arts. Theatres, art centres, museums and art galleries throughout the country have all been assisted by National.  We will continue to subsidise schemes for dealer galleries, the exhibition of the work of contemporary artists and purchases by public galleries of New Zealand paintings.  National supported the hugely popular Thyssen-Bornemisza exhibition, and the current exhibition of Henry Moore tapestries. National will continue such support.  PRESERVATION OF  OLD BUILDINGS.  National has revised the Historic Places Act to give the Historic Places Trust the structure and powers to protect important buildings and sites for posterity.  The National Government gave a generous allocation of $1,100,000 to the Trust for the last financial year.  In partnership with local government, National made a special grant of $125,000 so that the Historic Places Trust could purchase "Highwic" in Auckland – an outstanding example of early New Zealand architecture, and recently the Government made a gift of Antrim House, Wellington to the Historic Places Trust for their use.  FOR THE RECORD.  'Art is nothing more than the shadow of humanity." - Henry James  No country is without change. The changes of our time are reflected visually through painting and photography, the history of our time recorded by our writers and poets.  National believes in conserving our cultural heritage. We have established an interim committee for conservation and are now moving to implement the "Stowlow Report". This calls for a conservation institute to look after our cultural heritage, manuscripts, archives, artifacts, painting, photographs and film.  Not ALL art exports are encouraged. National has introduced measures to prevent our artifacts being taken out of New Zealand, and to buy back significant pieces from overseas collections whenever possible.  DEVELOPMENT OF THE ARTS IS NATIONAL'S OVERALL GROWTH STRATEGY.  Through the arts we provide a visual record of our life and times – “treasures” for future generations. Our growth strategy will give us the economic base from which to promote the arts throughout the country, both for our immediate enjoyment, and for the sake of our future generations.  Communication brings our nation together.  "A first-class communications system is a pre-requisite for a healthy, vigorous democracy.”  Hon. Warren Cooper, Post Master General, Minister of Broadcasting.  NEW OPPORTUNITIES FOR NEW ZEALAND.  New Zealand has a communications system of high quality. We are well prepared to take advantage of new developments in broadcasting and information technology.  Whole new industries are being built round such technology. National is well aware both of the employment prospects which it holds and of the social implications it carries.  National believes that investment by private enterprise is essential in the new communications industries and will encourage such investment. The enterprise, ingenuity and adaptability of New Zealanders in this new field of electronics is already well established and must be maintained and made to flourish.    A POLICY FOR PROGRESS.  National is committed to making the best services available to the greatest number of people.  It is also committed to maximum participation by private enterprise in an efficient cost-effective partnership with the public sector, with a minimum of regulation to protect the public interest.  BROADCASTING: CONTINUING    PROGRESS.  Television:    We are completing the coverage of TV1 and TV2 which will take   priority. Private sector participation will be introduced   progressively to complement public services.  F.M. Radio:    The decision has been made to introduce F.M. radio early next year.  A.M. Radio:    National will encourage the establishment of competitive stations in   areas presently underserved by radio.  EDUCATIONAL AND CULTURAL TV AND RADIO.  National will continue the development of educational TV and Radio.  We will also continue to support the moves to provide Maori and Polynesian programmes on radio and television. A Maori television unit has been established which along with the Te Reo O Aotearoa unit of Radio New Zealand assists this process.  POST OFFICE SERVICES.  National believes the Post Office should be run on the user-pays basis with sufficient revenue to provide the capital investment income capable of ensuring quality services to all regions in New Zealand.  Post Office facilities available through local branches will continue to be upgraded, including services offered by the Savings Bank.  MAIL SERVICES.  National will maintain high quality postal services to both rural and urban communities.  TELEPHONE SERVICES.  A vital role for the Post Office is the expansion of telephone services, particularly STD and rural services.  National has initiated the eventual shift to 80 free dialling zones and increased the amount spent from the telecommunications capital development funds for rural telephones from 10% in 1979/80 to 25% in 1980/81 and to 33.5% in 1981/82.  In an effort to reduce the problems of rural telephone users, 28% of capital investment surplus will be allocated to alleviate party line faults by the conversion of overloaded manual exchanges to automatic.    A BOOST FOR OUR ELECTRONICS INDUSTRIES.  The Post Office procurement policy will aim to maximise New Zealand's electronic industry manufacturing potential. Wherever possible import substitution will be fostered by co-ordination with local businesses.  ENCOURAGING GROWTH THROUGH MODERN SKILLS AND TECHNOLOGY.  Collective security is our best defence.  "Defence policy is about the protection of national interests. National will ensure the security and territorial integrity of New Zealand, including its adjacent 200 mile exclusive economic zone (EEZ). In today's unstable world, defence policy has to be a high priority." Rt. Hon. David Thomson, Minister of Defence.  SEEKING SECURITY AND STABILITY THROUGH OUR ALLIANCES.  National believes the security and stability of the Pacific region is fundamental to the future development and growth of New Zealand. National will continue to develop our defence relationships with the United States and Australia, as well as with our Pacific Island partners and the ASEAN nations.  The ANZUS alliance is the cornerstone of our defence effort. Within the framework of ANZUS, New Zealand maintains professional armed forces capable of meeting low key emergencies in our areas of interest. This supports our foreign policy objectives, and at the same time is flexible enough to allow an expansion of forces if neccessary.  National will continue to pursue effective programmes to maintain military standards and to train and exercise our forces overseas. In particular, emphasis will be given to ANZUS military exercises; exchanges and specialised training with the United States, Australian and British Forces; and combined exercises and training within the Five Power Defence  grouping.  DEFENCE PLAN FOR OUR TIMES.  The 1978 Defence Review undertaken by National represents a  continuing policy commitment. It stresses the importance of a defence plan focussed on the Pacific region, but notes that New Zealand's interests in the world are wide-ranging and cannot be limited to our immediate neighbourhood.  National recognises that world security has deteriorated since 1978. Growing Soviet power in the Pacific, made easier by naval and air base facilities in Vietnam, increases the necessity for New Zealand to work with our partners in ensuring security in our region.  National will continue to reject the policies of isolationism and nonalignment. New Zealand has many links with the world and a long history of positive contributions to the resolution of global problems.  National is implementing the recommendations contained within the 1978 Defence review. We have followed a systematic programme of  replacement and refurbishment of the armed forces' operational equipment.  A 'BLUE WATER' READINESS.  National is committed to maintaining a combat-capable operational ‘blue water' Navy. We reject the suggestion that New Zealand should restrict its naval activities to a "coastguard" role.  The cost of new combat ships has led to the decision to purchase two Leander class frigates from the Royal Navy for an overall cost of $100 million. The HMS Bacchante will replace the HMNZS Otago, while the purchase of the HMS Dido means that the HMNZS Taranaki will not now be converted.  These ships are fully compatible with the existing fleet and will serve the RNZN well into the next decade. Their purchase will allow time to review future equipment options and to take advantage of expected technological advances.  In the last two years the Navy has received a replacement diving tender and two inshore survey craft. National has also approved the construction, within New Zealand, of four new Naval Reserve patrol vessels. Projects under active consideration include the construction of the new Calliope South wharf to serve RNZN needs, and a replacement dockyard service craft.  MODERN MOBILITY ON LAND.  The army is to be equipped with 26 Scorpion light armoured fighting vehicles. National has also approved a tender for the progressive replacement of the Army's truck fleet. Over the next eight years, 1,300 new vehicles, of 3 different sizes, will be purchased. The Landrovers will be assembled in Nelson and the Mercedes trucks in Rotorua. The refurbishment of the armoured personnel carrier fleet is currently being carried out at the Ministry of Works and Development workshops in Turangi.  Other new field equipment, including radios, replacement tentage, combat clothing, and a New Zealand developed and manufactured pack, is being added to the inventory.  EQUIPPING NEW ZEALAND AIR FORCE.    Under National, the RNZAF has acquired three Fokker F27 aircraft for   navigation training and three Cessnas for communications flying. These   have replaced the obsolete Devons.    Three Boeing 727 aircraft have been purchased to provide two new   transport aircraft. (One will be for spares.) They will be used for   long range passenger flying and will release the Hercules transport   aircraft for tactical operations.    With the acquisition of the Cessna and Boeing 727 aircraft, the RNZAF   is now fully equipped for V.I.P. transport duties.    The life of the Hercules fleet is being extended through wing   modifications currently underway in the United States. The P3 Orions   are also being extensively modernised to provide an enhanced   surveillance, search and rescue, and navigational capability.    National is also committed to the purchase of twin-engined helicopters   within the Defence Review period.  CONDITIONS OF SERVICE.  National will continue to give priority to the conditions of service in the Armed Forces.  The 1979 pay review has provided servicemen with firm assurances as to relativity and the relationship of their pay increases to those in the public sector.  The Territorial Service gratuity has been substantially increased.  National will ensure that the concerns of the Armed Forces are taken into account in the current review of the Government Superannuation Scheme. We will continue our sympathetic support for war pensioners, reviewing carefully the provisions in consultation with the RSA.  Defence accommodation will continue to be systematically upgraded. Since 1978, $27 million has been spent on improving domestic and recreational facilities for the three services.  COMMUNITY RESPONSIBILITY.  The Defence Forces have an important role to play in the modern  community. They represent our determination to uphold our own sovereignty. They also give us the capacity to underpin our civil defence structures; patrol our EEZ; provide search and rescue capabilities; offer assistance in emergencies to our neighbours; and support our interests in the outlying islands of New Zealand and in Antarctica.  The key to maintaining such a wide variety of capacities is a continuing emphasis on flexibility and professionalism. National will maintain this approach.  NATIONAL'S COMMITMENT.  National's policy provides a full, balanced and realistic commitment to New Zealand's Armed Forces, Regular and Territorial. National will ensure they have the capability and equipment to meet all of New Zealand's needs.  We recognise the importance of the disciplined and dedicated force of men and women who make up New Zealand's Armed Forces.  ENSURING THE DEFENCE  OF NEW ZEALAND.  The path to prosperity is through economic growth.   "The world was shaken by the two oil shocks of the 1970's.   Imports rocketed in price, fuelling inflation and, consequently, unemployment.  New Zealand survived the 70's, our most difficult period since the 1930's, in remarkably good shape because of the National Gouemment's rapid and tough response to the changed circumstances”. Rt. Hon. Rob Muldoon, Prime Minister, Minister of Finance.  THE ECONOMY AND NATIONAL'S GROWTH STRATEGY.  National's growth strategy is based on a diversified and prosperous future for New Zealand after several decades of total reliance on our traditional products and markets. This is reflected in major new resource developments already well underway in many established and new industries from forestry to kiwifruit to electronics  We're talking the future... jobs for kids still in school and kids not yet born. That is what this is all about!  EXPORT INCOME EXPANDING.  We have built growth on exports and narrowed the alarming gap we inherited between our export income and import costs.  Labour's total failure in 1975 left a deficit of $1,000 million or 52.5% of our total exports at that time. Exports have increased by 40% in volume since 1975, with manufacturing exports up 126%. Export receipts have grown to $6,989 million, from $2,142 million in 1975.  National has progressively reduced the gap between export income and import costs down to where it is now only 12% of our exports.  Our export industries have risen to the challenge. In the past six years we have made enormous progress in agriculture, forestry, fishing, horticulture, manufacturing, and tourism.  MAJOR REFORM OF TAXATION.  We are committed to a major reform of taxation; our aim is to encourage effort by stimulating incomes and productivity, by reducing personal income tax, providing more stimulation for the business sector; and broadening the tax base. The work is underway in the tax reform group in preparation for the 1982 budget.  Through the world recession and oil shocks we managed to hold our tax level in New Zealand at 32% of G.N.P - a level very comparable with Australia, Great Britain and the U.S.A. and very much better than countries, such as Norway and Sweden, who take almost twice as big a tax-bite as New Zealand.  We have stimulated magnificent export growth by using export incentives which will continue at least until 1985. Our firm commitment until then and beyond is to maintain export profitability and growth.  Now we have got real growth in the economy - the forecasts are for growth of at least 3% per annum in real terms for the next decade.  FREEING THE ECONOMY  ENCOURAGES GROWTH.  We have encouraged growth by freeing up the economy. Our industries are becoming more competitive to meet the fiercely competitive world we now live in.  In 1976 we freed up the financial sector to allow capital to flow into the most essential areas of activity.  We freed up overseas investment in New Zealand to attract more capital.  We freed up exchange rate controls so as to keep export industries profitable and growing.  We freed up import licensing to allow new people to compete, and to give greater choice to consumer and industry. Import licensing is down from 60% to 20% of total imports.  We freed up the meat industry by delicensing.  We freed up retail trade by allowing Saturday shopping.  We freed up the development of essential projects by introducing the National Development Act, so that all objections can be heard together; the environment be protected; and legal delays avoided.  National relies on the initiative of individual New Zealanders to achieve economic growth, rather than control and direction by the State.  OVERDRIVE FOR THE ENERGY DRIVE.  Economic growth needs fuel.  National is rapidly developing our own energy resources to break our reliance on uncertain Middle East oil. We have begun the drive for self-sufficiency by committing ourselves to 150,000 vehicle conversions to C.N.G. and L.P.G.  We have committed New Zealand to large-scale production of methanol and synthetic gasoline from Maui gas for our trucks, tractors, buses, and cars. This will free us from the risk to our oil supply from instability in the Middle East. It will also enable us to use our hard-earned income from lamb and beef to buy the products we want, instead of using all our meat income to buy oil.  We have many other sources of energy that we will convert to exports or import substitutes.  Our water, coal, natural gas and geothermal energy can be converted into electricity to produce aluminium and steel; to process our forestry resources and to provide both industries and homes with ample low-cost power.  NEW MARKETS.  NEW OPPORTUNITIES.  Along with the oil shocks the changes in world trade in the 1970's were equally dramatic.  Britain's entry into the Common Market transformed our trading world. In the 1960's Britain totally dominated our trade with 90% of our lamb, butter and cheese going to that market. Increasingly the Pacific Basin has reversed that. Now the greatest part of our trade is with Australia, U.S.A. and Japan.  Closer economic relations with Australia after two years of intense negotiations are now close to completion and the benefits should assist New Zealand's industries to grow in the 1980's.  Asean's strong growth offers exciting prospects, and new potential markets are emerging in Latin America.  We are pursuing the opportunity to negotiate a permanent economic relationship with Europe.  ENCOURAGING GROWTH THROUGH A FREE ECONOMY AND RESOURCE DEVELOPMENT.  Education is an investment in our most valuable resource: our children.  "Education is a lifelong process. It is a partnership of parents, teachers and children working together, linking school and community, to prepare our country's young people for the world today and, perhaps more importantly, the world tomorrow. National recognises that in the teaching and training of its young people lies the nation's best investment for its future." Hon. Merv Wellington, Minister of Education.  WE'RE COMMITTED TO A GROWING INVESTMENT.  The National Government has spent more on education every year since 1975, when it came into power. That hasn't meant just a little annual increase to keep pace with inflation, either. Nor does it mean more money to achieve the same result.  Under National an increasing proportion of this country's resources are being channelled into education.  Under National a better quality of education means more teachers with fewer pupils per teacher. It means a better physical environment - better buildings and equipment to encourage and assist the learning process.  MORE INVESTMENT THAN EVER BEFORE.  The accompanying graphs and tables are conclusive proof that National is investing more into education than has ever been before. That's growth. And, growth is what National stands for.  Growth in education means more of our children are receiving a better education. They're being better equipped to face the demands of their world today... and tomorrow.  CURRICULUM FOR A MODERN WORLD.  The task of teaching and learning in the contemporary world is increasingly complicated by the "information explosion". Accordingly, National will continue to modernise and expand the curriculum into areas of study such as - workshop technology, horticulture, fishing and computer science - and those areas of study brought about by the growth and technological advancement of the nation and the world at large. Teachers will be recruited, trained and retrained to meet these changes.  At the same time, our schools will continue to foster the values of individualism and independence, family unity, community responsibility and national pride.  REDUCING THE HANDICAP OF THE HANDICAPPED.  National will continue to pay special attention to the needs of those who are handicapped, have special learning difficulties, or live in remote areas. The successful pre-employment training programmes, consisting of "School to Work" courses at post-primary schools and "Pre-Employment" courses in technical institutes and community colleges, will be continued.  BETTER UNDERSTANDING BETWEEN CULTURES.  One of New Zealand's strengths is its cultural diversity; the special needs of minority groups will continue to be met within the education system.  Equally, further effort will be made to foster an understanding and knowledge of the languages and cultures of all groups among New Zealanders.  MORE OPPORTUNITY FOR PRE-SCHOOLING.  National also recognises the importance of pre-school education, which has become an integral part of the total education system; opportunities in all areas of the pre-school movement will continue to be expanded. The number of kindergartens has increased from 401 in 1975 to 516 in 1981.  MORE HELP FOR STUDENTS WANTING TO HELP THEMSELVES.  National supports the concept of a strong and autonomous university system. The present Tertiary Assistance Grant Scheme will be adjusted to better meet the needs of students who do not live in university centres.  INTEGRATION ON REQUEST.  National recognises the right of parents to enrol their children in the school of their choice. Therefore, State aid will continue for those schools which wish to remain independent.  National is totally determined to complete the task of integrating those Church schools which seek to be integrated, whilst protecting and preserving their special character.  National is committed to providing educational opportunities for all New Zealanders, at each stage of life, and to providing greater flexibility in the educational system, to meet the challenges of o rapidly changing world. National is also committed to providing second chance education, so necessary in a modern society.  ENCOURAGING  GROWTH THROUGH  MODERN SKILLS AND TECHNOLOGY.  Growth will give work to everyone who wants it.  "The objective of the Growth Strategy is jobs for all who seek them. Let no-one doubt the Government's commitment to achieving that end. We do not seek growth for its own sake but for what it means to people." Hon. Jim Bolger, Minister of Labour.    NATIONAL'S GOAL – JOBS FOR ALL.   Our jobs give us much more than the money we earn.    They also provide a sense of belonging, a feeling of contributing to   society through the production of goods or the provision of services.  Even before the oil shocks of the 1970's, there were few countries in the world that had full employment. Today there are even less. But National has not given that goal away.  For the last six years the National Government has been implementing a growth strategy that will overcome the current barriers to full employment.  Our goal remains a job for everyone who wants to work. But no government can meet that goal unaided. It requires the co-operation and positive involvement of trade unions and employers, of the education system and the training institutions.  All who accept the goal must also accept their share of the responsibility for achieving it.  THE ECONOMIC REALITY.  Today a higher percentage of New Zealanders are in paid employment than ever before in our history. But, even so, there are too many people without jobs. There are three principle reasons for this:  Enormous increases in the price of oil have meant that New Zealand, along with many other countries, has been drained of the overseas funds so necessary to buy imports and to promote growth in the economy. And increased job opportunities are dependant on economic growth.  The employment problem has been magnified by the substantial increase, during the 1970's, in the number of people entering the workforce and seeking jobs.  At the same time the New Zealand workforce is being required to adjust to an  increasing rate of technological change. New jobs are being created, but new skills are being demanded. For the unemployed without skills, finding a job has become more difficult.  NATIONAL'S FULL EMPLOYMENT STRATEGY  National has responded to these changes through a positive two-pronged approach.  A growth strategy is being pursued and as the New Zealand economy breaks away from the debilitating effects of the oil shocks and into a growth phase, there will be increasing job opportunities.  In addition, a range of wage subsidy and skill training schemes has been introduced to assist those who are unemployed to gain work skills and obtain jobs.  HOW NATIONAL'S GROWTH STRATEGY WORKS.  National's growth strategy will create new jobs in three ways:  Directly in our export industries, both traditional and new.  Indirectly in the many small businesses that service the major industries.  Through earning or saving overseas exchange thus allowing the economy to grow.  Let's take each of these in turn.  NEW JOBS FROM OLD AND NEW INDUSTRIES.  Employment will be created directly in our traditional exporting industries - agriculture, manufacturing, forestry, horticulture, fishing and tourism - in our new energy based industries, and in new industries based on micro-chip technology. Strong employment growth is already occurring in these industries.  For example, an additional 16,000 jobs have been created in agriculture and horticulture and an extra 2,200 in fishing in the last four years. And additional jobs are being created every day as contracts are being let for the construction of the new energy projects.  MORE PEOPLE NEEDED FOR MORE SERVICE.  Employment wilt also be generated in the many industries and small businesses that provide goods and services for our major industries and for those who work in them.  Growth in horticulture is already leading to more employment opportunities in those businesses that service the horticulturalist. The employment growth in the Bay of Plenty in recent years proves this.  In Southland everyone knows that the existing aluminium smelter has created many jobs throughout the region - two to three times as many jobs in other industries and businesses as in the smelter itself. The long list of forestry and energy based projects planned for the 1980's will provide similar job opportunities in other regions.  EXTRA EMPLOYMENT FROM EXPORTS.  But the key to full employment is through earning or saving overseas exchange. We have to earn overseas income to pay for those goods we need to import - goods like oil, like raw materials for industry and machinery for agriculture and including some of our basic food items and medical supplies. That is why exports feature prominently in our growth strategy.    It is also why we are giving high priority to the development of our   energy resources -we are adding a new dimension that will reduce our   dependance on imported oil and provide new industries that will earn   overseas income.    As we increase our capacity to import so the economy can grow and more   jobs are created.  ECONOMIC GROWTH  PRODUCES EMPLOYMENT  GROWTH.    The growth strategy will allow for the creation of an additional   410,000 jobs throughout the economy during the 1980's. The great   majority of these jobs will be in small businesses up and down the   country. They will be in the agricultural servicing sector, in the   transport and processing industries, in building and construction, in   the industries involved in contracting for the development projects,   in shops and offices, in finance and commerce, in the entertainment   and recreational sectors, and in tourism.    Growth is not about promoting either the big or the small industries.   The two are interdependent - they go together. Each will play a part   in creating job opportunities through the decade of the 1980's.  JOBS FOR TODAY.  National knows that the prospect of a job in the future is of little comfort to the person out of work today. So National has put In place a range of wage subsidy and skill training programmes in the private and public sectors. Currently around 24,000 persons are in employment as a result of these schemes, gaining work skills and job experience in the process. These schemes are providing the “bridge” between unemployment and unsubsidised full-time employment.  NEW OPPORTUNITIES  FROM NEW SKILLS.  We will continue to build and further develop these programmes as a way to provide more job opportunities in the short term - particularly in the private sector. Skill training will continue to be a key goal in all new programmes.  We are looking to both public and private sector employers, to the unions and to those involved in education and training to use the programmes that are in place. We want co-operation from all these groups to help us solve the unemployment problem.  TRAINING FOR YOUNG PEOPLE.  We are in the process of revising the apprenticeship system with the intention of developing a system that is both more flexible and more relevant to present employment demands.  We are also studying, as a matter of priority, what further training provisions should be introduced for inexperienced young workers in occupations not presently covered by apprenticeship or other formal training programmes.  Some young people are being denied employment opportunities because, in some cases, wage rates are set too high. We are working to ensure that awards provide for graduated wage rates for inexperienced young people as a way to encourage employers to provide more job opportunities.  TURNING CHANGE TO  THE NATION'S BENEFIT  Change and the introduction of new technology are occurring all the time in the workplace.  There are now more than 17,000 persons employed in new technology industries -industries which did not exist a decade or so ago. We New Zealanders have led the world with many of our innovations. But we must continue to adapt to the changes taking place around us. Failure to do so will only lead to higher unemployment.  We want to turn new technologies to New Zealand's advantage for everybody's benefit.  National wants to see greater flexibility in the work place, for greater emphasis to be given to such things as flexible working hours, job sharing, part time employment opportunities and working from home. The provision of more employment opportunities through the growth strategy, along with the introduction of new technology, will provide greater scope for these innovations.  A POLICY WITH A FUTURE  Economic recovery will not happen overnight. Nor will unemployment miraculously disappear  But National has a positive employment policy with the real prospect of full employment for New Zealand. It will require co-operation, ingenuity and hard work but New Zealanders are renowned for these qualities.  As a nation we are fortunate to have highly productive land, plentiful fishing grounds and many natural resources. National has accepted the challenge to develop these resources to provide for our people.  These are the key to full employment.  ENCOURAGING  GROWTH THROUGH  MODERN SKILLS  AND TECHNOLOGY.  We’re harnessing the energy to keep New Zealand moving.    I  "Our aim is to ensure an orderly transition from an economy dependent on imported oil to an economy relying on our own diversified energy resources. The long term goal is for New Zealand to be totally self-sufficient in energy by the turn of the century." Hon. Bill Birch, Minister of Energy.  ENERGY FUELS OUR ECONOMY.  Energy is a crucial input for all forms of production. Through the 1950s and 1960s we fuelled our economy on cheap imported oil. This enabled us to enjoy economic and social progress and to develop our way of life.  The oil shocks of the 1970s brought home to us how vulnerable we are. In 1973 oil cost us $93M, this year a massive $1500M, over 30% of our total import bill. While we remain dependent on imported oil, the oil producing countries effectively determine our level of economic independence. National believes this is quite unacceptable to the people of New Zealand.  So the National Government has set New Zealand on a course towards self-sufficiency in transport fuels for our cars, tractors, trucks, buses, aircraft and ships. Decisions have been taken that will make New Zealand 50% self-sufficient in transport fuels by the end of 1987    and a world leader in alternative fuel use.  ENERGY AND NATIONAL'S  GROWTH STRATEGY.  New Zealand is rich in energy… the new currency of the world.  The Maui field is one of the biggest gas fields in the world, with vast reserves of natural gas and condensate.  We have found oil at Mckee and signs for further discoveries are promising.  Our hydro resource, already well developed, provides scope for further expansion while still preserving our attractive wild and scenic rivers.  We have large reserves of coal and of geothermal energy. Biomass has the potential to be another major source of transport fuel in years to come.  With these resources there will be no need for New Zealand to consider nuclear power in the forseeable future.  WE NEED OUR OWN LIQUID FUELS.  But New Zealand is vulnerable in the field of liquid fuels.  National believes the Maui gas field provides us with the best opportunity to overcome this vulnerability. That is why we made the decision back in 1978 to use Maui gas for liquid fuels rather than to generate electricity.  That was why the Liquid Fuels Trust Board was set up; to investigate alternative fuels such as methanol and synthetic gasoline, and to make recommendations to Government regarding their use.  The planning was already under way when the revolution in Iran precipitated the second oil crisis and seriously threatened our oil supply. Savage price increases were imposed on us, with oil prices trebling from $12 to $36 a barrel. We have only managed to avoid rationing through a major effort by all New Zealanders to earn additional foreign exchange to pay for the increased cost of oil Whilst there is currently a temporary pause in the rapid rise of the cost of oil we must anticipate further increases in cost as the world's oil resources are depleted.  OVER A BARREL.  The 1979 crisis highlighted how vulnerable we were to political events in the oil producing countries. Instead of importing up to 60% of our oil from Iran, suddenly none was available from that source. It emphasised the need for decisions to be made regarding the Maui field and for the self-sufficiency strategy to proceed urgently.  That urgency, and the need to consolidate planning requirements, resulted in the National Development Act of 1979, giving a fast track procedure for projects of national importance.  THE ROAD TO SELF-SUFFICIENCY.  National has made a number of very positive integrated decisions to develop a balanced plan in the drive towards energy self-sufficiency. These include:    • a $170 million programme to reticulate natural gas throughout the   major regions of the North Island from the Maui Gas Field.    • the development of a new Compressed Natural Gas (CNG) industry, and   a programme to convert 150,000 cars to CNG.    • a nationwide distribution system for Liquid Petroleum Gas (LPG) and   conversion of cars to LPG.    • a synthetic petrol plant to produce one third of New Zealand's   petrol requirements from Maui gas.    • the expansion of the Marsden Point oil refinery to give added   flexibility in the sources of oil we can refine.    • a major programme for oil and gas exploration in which $500M will be   invested.  CHG ON THE GO.  In just two years National has developed a positive climate for the development of a new CNG industry. Incentives introduced include $200 grants for motor vehicle conversions, tax incentives and 25% cash grants for service station establishment. These have provided the right climate for expansion.  By the end of 1981 over 100 filling stations will be in operation servicing the 20,000 cars expected to be converted by then.  National's immediate target is 150,000 cars converted to CNG by the end of 1985. To further assist the process National will implement a grant, scheme for the conversion of new vehicles, with effect from 1 April 1982. Soon we shall be the world's largest user of CNG in petrol engines and newly developed technology in New Zealand makes the use of CNG in diesel engines look most promising.  NATIONWIDE DISTRIBUTION OF LPG.  National has also promoted the setting up of a nationwide distribution system for Liquid Petroleum Gas. Private sector companies have been included in the Liquigas Consortium which has been charged with this responsibility.  The building of a distribution system with road and rail tankers, and coastal shipping is well under way to ensure the nationwide distribution system is operating in 1983.  National's policy is to ensure that LPG is available at a common New Zealand price at major ports in both the North and South Islands.  National will provide further incentives to encourage the use of LPG as the supply becomes more readily available.  PETROL FROM MAUI GAS... LEADING THE WORLD.  The worlds first natural gas-to-petrol plant will be built in Taranaki. This production of petrol from Maui gas will substantially reduce our dependence on imported oil.  National's commitment to the synthetic petrol project is particularly important for all South Island motorists. It is important also for those North Island motorists who don't have access to CNG, as well as for the many motorists whose annual mileage is too low for it to be economic to install conversion equipment.  National's target is to be producing petrol from Maui gas in 1985.  OIL REFINERY EXPANSION ADDS FLEXIBILITY.  The oil refinery expansion now proceeding at Marsden Point complements the CNG, LPG and synthetic petrol projects. The expanded refinery will provide the balance of the fuels, particularly diesel and jet fuel, to meet New Zealand's needs.  In addition, because it will be able to refine a much wider range of oils from around the world it will lessen our dependence on oil supplies from the politically volatile Middle East region.  THE SEARCH FOR OIL GOES ON.  The interest in oil and gas exploration has now reached unprecedented levels.  Licences already issued for on-shore and offshore exploration will involve annual expenditure of around $100 million per year over the next five years. This is expected to increase substantially in the years ahead.  Petrocorp alone is proposing to spend $91 million in 1982/83 and $147 million in 1983/84 in on-shore and off-shore prospecting.  With the worldwide interest now being shown in oil exploration in and around New Zealand the prospects of a major oil strike are enhanced.  A NEW DIMENSION.  Damaging though the oil shocks have been for New Zealand they also provide us with the opportunity to take advantage of the increased value of our own indigenous energy resources.  We are now able to add a new dimension to the New Zealand economy through such projects as:    • the stand alone methanol plant, currently underway at Waitara.    • the ammonia urea plant, being built at Kapuni.    • the development of a petro-chemical and plastics industry to provide   further benefits from our natural gas resources.    • the expansion of New Zealand Steel at Glenbrook. the expansion of   New Zealand Steel at Glen brook    • the expansion of the Tiwai Point aluminium smelter near   Invercargill. the expansion of the Tiwai Point aluminium smelter near   Invercargill    • a second aluminium smelter at Aramoana near Dunedin.    FACING THE FUTURE WITH CONFIDENCE.  National has responded boldly to the challenge that was thrust upon us in 1979 when our oil supply was threatened and the price trebled. National has set New Zealand on a course towards energy self-sufficiency based on utilisation of the Maui field and the development of other indigenous energy resources.  National will not squander our nonrenewable energy resources but rather use them to ensure an orderly transition towards dependence on renewable resources.  Energy is the essential catalyst for growth and growth is the key to social development. National's aim is to utilise our energy resources to the benefit of the nation.  ENCOURAGING GROWTH THROUGH DEVELOPMENT OF ENERGY.  Conserving our environment for future generations.   “New Zealand is one of the most beautiful and unspoilt places on earth. A country well endowed with magnificent mountains, forests, rivers, lakes and beaches. We are committed to the protection of New Zealand's unique natural heritage, not just for ourselves but, for future generations”. Dr. The Hon. Ian Shearer, Minister for the environment.  MAINTAINING A BALANCE.  National is firmly committed to a path of growth for New Zealand. We are equally committed to a policy of conserving our environment for ourselves and our children. We believe that economic development and the protection of our environment can and must go hand in hand.  Our record to date is well regarded. This year New Zealand received international acclaim when the OECD reported that New Zealand has one of the least polluted and least congested environments in the Western world. We are committed to keeping it this way.  DEVELOPMENT AND CONSERVATION CAN BE COMPLEMENTARY.  National’s policy is to ensure that development and conservation are complementary. National's growth strategy is dependent on the careful development of our resources, balanced by measures to protect our environment.  We will continue to ensure that areas of New Zealand that contain unique ecological Systems, scenery of distinctive quality, or natural features that are beautiful, unique or scientifically important are preserved.  PROTECTING OUR RIVERS.  National has amended the Water and Soil Act to protect rivers and sections of rivers that have wild, scenic or other natural characteristics. National is also encouraging interested groups to use existing provisions in the Reserves Act and the Town and Country Planning Act to protect rivers where recreational and scenic characteristics have special significance.  A five year moratorium on hydro-electric development has recently been placed on the scenic Manganui a te ao River near Wanganui. This will ensure the protection of this wild and scenic river.  GREATER PUBLIC PARTICIPATION.  Greater public and local body participation is being encouraged through the amendments which have been made to the Mining Act. The amendments remove the prospector's automatic right to a mining licence; require that public notice be given of applications; and provide for hearings before a Planning Tribunal.  The revised Town and Country Planning Act also vastly increases the public's rights to participate in planning decisions as they affect the social, cultural and physical aspects of both our rural and urban environments.    CITIES ARE FOR PEOPLE.  As we move into a new era of urban living, the environmental aspects of our cities take on a new importance. Four out of every five New Zealanders now live in cities. Protection of the urban environment is a key aspect of National's environmental policies.  Under National extensive urban renewal programmes have been undertaken. Redevelopment programmes ensure optimum land use while rehabilitation programmes ensure the best utilisation of existing housing stock. Conservation programmes will ensure the preservation of buildings for their architectural, historical, or aesthetic qualities.  KEEPING THE  AIR CLEAN.  Clean air is important. Detailed studies of air pollution control methods for new and expanding industries have been undertaken. In order to deal with the domestic coal smoke pollution problem in Christchurch, National has made finance available for interest-free loans on the purchase of electric space heaters, by households in the Christchurch clean air zone.  OUR MAJESTIC FORESTS.  Our native trees are incomparable in their majesty and beauty. At present some 2.6 million hectares of native forest are set aside for recreational use by all New Zealanders - including the 17,000 hectares of coastal lowland forest recently added to the Westland National Park.  In the last four years the volume of timber taken from native forests has reduced by more than half. Management policies are directed towards a further 80 percent reduction over the next decade. National's long term policy is to reduce the milling of native forests to the point where our native timbers are only being used for specialist functions.  To ensure forestry contributes to our economic growth without threatening the future of our native forests, National has promoted the planting of exotic trees specifically for production.  While the exotic forest industry booms, our native trees will stand tall and untouched.  CARING FOR OUR  WILDLIFE.  Our environment belongs to our wildlife as well as ourselves. National has launched a campaign to protect the habitat of our rare and endangered wildlife species.  Logging in South Okarito was halted to protect the South Island brown kiwi which lives there. A moratorium on logging has been imposed in the Pureora and Puketi state forests to protect the endangered kokako.  Stringent predator control on Stewart Island has resulted in the first observed birth of a kakapo chick for over 70 years. On the Chatham Islands egg fostering is ensuring the continued survival of the tiny black robin.  New Zealand has recently passed legislation to protect sea mammals. Legal protection has been provided for a number of land and freshwater animals.  National has also established a law enforcement unit within the Wildlife Service, to provide real protection against poachers who seek to exploit our protected wildlife for economic gain.  A committee to co-ordinate wildlife research has also been established.  A FUTURE FOR  ENDANGERED SPECIES.  Adding considerably to our knowledge of endangered species is the recent publication, "The Red Data Book”, written by two New Zealand scientists. This book provides a comprehensive list of endangered New Zealand flora and fauna. It also identifies the level of dependence of each species upon its own  particular habitat. Habitat preservation will be greatly assisted by the recently established biological resource centre within the Department of Scientific and Industrial Research.  COASTLINE  CONSERVATION.  Two marine reserves have been established by National. We will investigate other methods of protecting our estuaries and unique mangrove swamps. We will also seek public support for a greater level of coastline conservation.  A WIDER OBLIGATION.  Under National, a convention giving protection to Antarctic marine living resources has been ratified. In accordance with this international agreement, National will help regulate all fishing activity in the region. Antarctic waters are now treated as a complete ecosystem and the convention protects all. mammals, fish, crustaceans, molluscs and other species including birds.  OUR NATURAL HERITAGE FOR  OUR CHILDREN  National believes that the present generation has an obligation to respect the rights of future generations. We will ensure that they are left with options for using natural resources and that they can reap the benefits and pleasures of New Zealand's unique natural heritage.  Our fishing industry”s increasing catches at sea mean more jobs on land  "The waters that surround New Zealand are a valuable asset and an important resource for this country. They provide the opportunity for both recreational and commercial fishing. And there is room for both. National will ensure that the interests of those who enjoy fishing for recreation are protected, while at the same time developing the fishing resource that is now available to us. The New Zealand Fishing Industry is an important part of National's Growth Strategy." Rt. Hon. Duncan MacIntyre, Deputy Prime Minister, Minister of Fisheries.  SINCE 1975 THE NATIONAL  GOVERNMENT HAS:  •encouraged the rapid expansion of the domestic fishing industry.  • ASSISTED NEW ZEALAND to obtain the maximum benefit from the fishing resource.  • encouraged the use of joint ventures to accelerate the development of the New Zealand industry.  ONE JOB AT SEA MEANS FIVE MORE ON LAND.  National recognises the major benefit of the fishing industry to the nation, and to the provincial ports, in terms of job opportunities, and other economic and social benefits.  Currently 5,700 people are employed in catching, processing, and marketing our fish - an increase of 2,200 since 1975. Many of them women.  Over the next decade we expect the fishing industry to offer a further 5,000 plus new jobs. Of these some 800-900 will be at sea and 4,000-4,500 on-shore.  For each new job at sea, five extra jobs are created on-shore. Boat builders, ship repairers, marine servicing industries, transport operators, processing companies and local authorities will all benefit from this growth.  THE WORLD IS HUNGRY FOR OUR FISH.  It is anticipated that world demand for fish will continue to increase in line with population and income growth. The challenge for the New Zealand fishing industry is to make sure it captures its share of this market growth.  The industry was encouraged in 1976 to grow, and our fishermen responded, with the result that the domestic industry now has a firm base of trained people in traditional fishing areas. This rapid expansion has, inevitably, caused some problems and so the current phase is one of consolidation and review.  The next development required is an extension of our abilities through increased training facilities for New Zealand fishermen. This will enable them to increase their skills and widen the use of new technology so that they are able to move into deeper water, fishing with confidence.  NEW SPECIES.  NEW VESSELS.    Further growth must be through the expansion of the local industry   into fishing for species such as bluefin and skipjack tuna and   mackerel. Larger vessels will also be needed to harvest deep-water   species such as the orange roughy. Further processing will be   required, with emphasis on quality, and product development.    National's policies are geared to achieving these aims, through   increasing our involvement in the exclusive economic zone. Foreign   licensed vessels will be gradually phased out and joint ventures will,   increasingly, have a larger New Zealand content.    By the end of this decade, the industry should be largely New Zealand   owned and operated.  THE MORE WE KNOW THE MORE WE CAN CATCH.    There is much still to be learned about our marine resources. National   has placed a proper emphasis on research and will continue to do so.    The Fisheries Research Centre and the new research vessel "Kaharoa"   will provide information on resource levels, processing and handling   methods, and will ensure that the industry improves the quality of its   product and continues to get better value for it.  The Oceanographic Research Institute and the Fisheries Research Centre will provide information on the best conditions for both marine farming and the enhancement of our waters.    A BRIGHT FUTURE FOR FISH FARMING.  Because the potential yields from marine farming are four to five times greater than farming on land, National has emphasised the need for research in this area.  Salmon, mussels, oysters and scallops are already being farmed and there are long term possibilities of including eels, cockles, tua tua, kina, koura, pipis and crabs in this list  To achieve the growth target it is essential that the Government and the industry work together to ensure that investment finance is made available as required.  Competition on world markets will be tough. The use of new technologies to catch fish more efficiently, to process products more effectively and to maintain quality will be vital.  ENCOURAGING GROWTH THROUGH SKILLS AND TECHNOLOGY  FISHING WILL CONTINUE TO GROW WITH NATIONAL.    With National's assistance, the industry has already established a   firm base from which to operate to face the challenges of the future.    National's policies will be geared to achieving these aims,   recognising the vital importance of the fishing industry in terms of   regional development, employment opportunities and its ability to make   a most valuable contribution to our economy.    'I  Co-OPERATION IS NEW ZEALAND’S SECURITY IN AN UNSTABLE WORLD.  "The basic objective of National's foreign policy is the promotion of New Zealand's economic wellbeing and security. Through this policy we can develop peacefully and without external harrassment." RT. HON. BRIAN TALBOYS, MINISTER OF FOREIGN AFFAIRS.  SAFEGUARDING NEW ZEALAND'S INTERESTS.  National sees international trading relationships in today's world as more than simply business dealings. Security of access to foreign markets is essential for the long term expansion of our trade. This depends, in large measure, on the development of a "total relationship" with each of our trading partners.  National recognises the importance of keeping the alliance with our ANZUS partners in good order; developing our links with the South Pacific and ASEAN; and moving, as our trade has moved, into a range of new relationships with countries outside our traditional partners.  CLOSE TIES ARE  OUR STRENGTH.  National recognises that size imposes constraints that prevent New Zealand from being a major force in international politics.  New Zealand is vulnerable to fluctuations in international trade, and has only limited bargaining power in commercial or military situations. We often stand to gain more from partnership and co-operation based on mutual benefit or common objectives than by going it alone.  National believes that New Zealand's interests are closely tied with those of Australia.. our most important trading partner.  National has set in motion the negotiations for a Closer Economic Relationship. This aims to develop the important economic interests we share with Australia in a long-term agreement.  National places great importance on New Zealand's links with the United States.  The ANZUS Treaty is limited to the specific purpose of defence. However, the ANZUS partnership has the broader objective of promoting security by building close and co-operative relations among the three countries.  NEW FRIENDS.  NEW OPPORTUNITIES.  National has emphasised the development of closer political and economic links with the ASEAN countries. The meeting earlier this year between representatives of the Chambers of Commerce and their ASEAN counterparts shows a deepening relationship which National will continue to foster.  National sees the major economic growth evident in South America as a further area of opportunity for New Zealand.  The Middle East is another area of increasing importance to New Zealand, not only for the major new markets in sheepmeats and other products that have been developed in recent years, but also as a major source of oil. However we must always be aware of the political volatility of that region.  National has taken the first steps in establishing diplomatic relations with Africa. Links have been formalised with Kenya, Nigeria and Tanzania.  OUR INTERNATIONAL ROLE.  New Zealand will continue to work in close association with other countries in the United Nations and the Commonwealth, actively participating in the host of technical bodies that are part of these organisations.  National will advance the cause of disarmament in a realistic manner, and will seek to protect the Antarctic against harmful exploitation. We will further encourage the Law of the Sea negotiations to be expedited, in the interests of the nations of the South Pacific as well as New Zealand.  Under National, New Zealand delegations have played an active role at the International Whaling Commission meetings. Efforts to achieve an international whaling moratorium will continue.  CONTINUING ASSISTANCE FOR THE SOUTH PACIFIC.  The peaceful development of Pacific Island countries is important to New Zealand for many reasons. Many New Zealanders have family links with the Islands, and the region is strategically significant for New Zealand.  National's policy is for the South Pacific to continue to receive the greater amount of New Zealand’s official development assistance. Last year 57% of the total was spent in the South Pacific.  New Zealand is acknowledged to have suffered to a greater extent than other OECD countries from the recession in the world economy. This has affected New Zealand’s capacity to increase the proportion of spending on aid.  Greater progress towards the Official Development Assistance goal of 0.7% of Gross National Product is only possible through growth in the New Zealand economy.  GLENEAGLES AGREEMENT.  In accordance with its concern for the universal observance of human rights, National will continue to express its opposition to policies of racial discrimination wherever they may exist, including the policy of apartheid. As a signatory to the Gleneagles Agreement, a National Government will continue to persuade New Zealand sporting bodies to observe that agreement as a code of conduct in international sporting events.  ENCOURAGING GROWTH THROUGH INTERNATIONAL  CO- OPERATION.  Forestry is reaching for the sky.  “IT is in exotic trees that the future of New Zealand's production forest lies. More trees have been planted in the last 5 years - under National - than in any other similar period in the country's history.  Timber production will double by the mid 1990's and double again by the year 2015” Hon. Venn Young, Minister of Forests.  FORESTRY AND NATIONAL'S GROWTH STRATEGY.  Almost one quarter of New Zealand is covered in forests. All but 10 percent native forest - high by world standards. While most other countries are cutting down their forests and not replacing them, this is not the case in New Zealand.  National's policies aim to keep our native forests as reserves or managed stands while adding to the nation's forest estate with further plantings.  It is in exotic trees that the future of New Zealand's production forestry lies. More trees have been planted in the last five years -under National - than in any other similar period in the country's history.  Ninety percent of new plantings are radiata pine which is probably the most versatile of all wood producing species.  New Zealand's climate and soils particularly suit the growth of radiata which grows many times faster than in other major timber producing countries.  26,000 TONNES GROWTH EVERYDAY.  Today we have some 900,000 hectares of exotic forests in New Zealand and they are growing at a rate of 26,000 tonnes of wood per day.  Sixty percent of these forests are less than ten years old and will not be ready for harvesting for some years yet. Even so, last year forestry earned New Zealand $588 million or 10 percent of our total export earnings.  Major investment projects are planned to cater for the new volumes of timber which will be coming on the market in the next 15 years.  ONE NEW JOB EVERY 20 HECTARES.  Production will double by the mid 1990's and double again by the year 2015. This spectacular growth in production will provide a seven fold increase in export earnings, and from only seven percent of New Zealand's total land area.  With the growth in timber production and processing will come growth in employment opportunities. Direct employment generated through forestry is at the rate of one job per 20 hectares of production forest. In addition there will be jobs in processing and servicing which will employ a further 11,000 people.  FORESTS AND FARMS  GROW TOGETHER.  Growing trees is only one rural land use option and must be successfully integrated with farming. Well integrated patterns of land use are being developed to the mutual benefit of both farming and forestry. National will continue to encourage farm forestry as a means of ensuring optimum land use.  Forestry does not exist in isolation. Based on home-grown renewable resources the industry is an integral part of National's Growth Strategy. Its benefits extend to all sectors of our community.  A SAFE LIFE FOR  NATIVE WILDLIFE.  Ninety percent of our forests are native forests, and today their future lies more in conservation and recreation than it does in timber production. Since 1975 National has reduced the logging of native forests by half. Management policies are directed towards a further 80 percent reduction over the next decade. Our aim is to preserve our native forests and to ensure that their beauty and wildlife is not threatened.  However, we also recognise the social and economic needs of those small communities whose livelihood has always depended on the production of native timber.  CONSERVATION FOR RECREATION.  Only ten percent of native forest is now being used for production purposes. The emphasis is on ensuring that these forests are maintained in perpetuity. Native trees are replanted in these forests with the Forest Service planting out nearly half a million seedlings per year.  The demand for high quality timbers will, increasingly, be met by the planting of special purpose species; but there will always be a demand for a small volume of native timber whose intrinsic quality and beauty remains unsurpassed.  Today, 25 percent of our native forest enjoys special reserve or National Park protection. Our native forests are a part of New Zealand's unique quality of life. As we become more urbanised we value more the recreational opportunities that the great outdoors can give us.  YOUR RIGHT TO DECIDE PROTECTED.  National recognises the right of the people to determine how their land and forests can best be utilised. The Forestry Amendment Act introduced by National in 1976 has increased public participation in any decision affecting the future of our native forests.  We will encourage still greater public involvement in forestry planning at a regional level by developing further the procedures available under the Town and Country Planning Act.  ENCOURAGING  GROWTH THROUGH  MODERN SKILLS  AND TECHNOLOGY.   Our nation’s health is its future wealth  "National is committed to providing the best and most accessible health services possible within the limit of resources available.  New Zealand health services are a unique blend of the public sector, private enterprise and voluntary agencies. National intends to harness this combination to best effect." Hon. George Gair, Minister of Health.  THE WORLD HEALTH  ORGANISATION SAYS:  "Health is a state of complete physical, mental and social well-being; not merely the absence of disease or infirmity. Community health implies not only the maintenance but also the achievement of this type of health in the community. The enjoyment of the highest attainable standard of health is one of fundamental rights of every human being without distinction of race, religion, political belief, economic or social condition.”  THE NATION'S HEALTH AND NATIONAL'S GROWTH STRATEGY.  National will continue to:  • Improve the mobility, flexibility and diversity of our health services.  • Implement community health care and preventive health measures to make primary medical care more accessible to people in their own localities.  • Encourage and assist hospital boards to extend their community health and domicillary care services, such as home help, meals-on-wheels, laundry services, district nursing and chiropody.  • Promote health education and disseminate information which will assist the individual to recognise his own responsibilities.  • Further expand occupational health services and work in association with industry to minimise hazards in industry.  • Give increasing emphasis to control of air and noise pollution, and chemical contamination of the environment.  • Further encourage, in school and pre-school age groups, early identification and correction of medical disabilities relating to such things as hearing and vision, and maintain the encouraging progress achieved in child dental health.  • Collaborate with, and where appropriate give financial support to, voluntary agencies engaged in community health and health education.  CHANGES TO MATCH CHANGE.  To fit the changing needs and realities of today, the delivery of health services is being adjusted.  The importance of primary health care out in the community is recognised for the double advantage of serving people in their own environments and easing pressure on institutions.  This year's Health Vote - the second largest item in the budget - will account for about $1,600 million. This is almost 6% of Gross Domestic Product.  National's policies aim to rationalise the use of the resources by avoiding duplication of effort, and duplication of high cost specialisations.  Hospital Boards have responded well t6 the need for financial restraint in adjusting to the needs of today's economy. They have shown a willingness to adapt to change and realistically review their spending priorities. Disparities had arisen between boards due to an historical pattern of funding. The most equitable form of funding would be one based on population with appropriate allowances for various needs and special services.  Such a programme is now the subject of detailed study. However a change towards this could only be achieved gradually, and would require regular reviews.  PLANNING FOR PEOPLE CARE.  The slowdown in population growth, and the need to achieve maximum value for each health dollar, calls for more effective planning in high cost areas, e.g. building, high technology and personnel. Manpower is the health service's most costly component - more than 70% of the hospital service’s costs.  It is vital that there be proper manpower planning mechanisms to ensure that in future both surpluses and shortages are, avoided, and that each of the 27 professions involved have defined their respective roles to avoid costly duplication. It is also necessary for the various elements of the health services to plan together so that they can respond in a constructive and co-ordinated way and adapt to constantly changing circumstances.  To ensure this objective, National will convene a comprehensive health manpower planning conference in 1982.  NEW IDEAS FOR IMPROVED SERVICE.  In 1976, following scrapping of the ill- conceived proposals in Labour's White Paper on Health, the National Government set up the Special Advisory Committee On Health Service Organisation (SACHSO).  On that committee's recommendation National established pilot health committees in Northland and in Wellington to test acceptability of the Area Health Board concept at local level.  The concept seeks to integrate the roles of the hospital boards and district health offices in the form of Area Health Boards and encourage greater co-ordination as between such boards, the health professions and voluntary organisations. This concept is now being given careful study.  A HEALTHIER NEW ZEALAND.  Individual lifestyles are an important factor in health. Significant improvement in the community's health status will be dependent in very large measure on the adoption of more healthy lifestyles.  Smoking has been positively linked with cancer; heart disease and respiratory diseases.  Alcohol abuse and alcohol-related problems are estimated to cost the country in health damage and repair; social consequences and lost economic activity, in excess of $500 million per annum.  The misuse of drugs, (both legal and illegal), is cause for concern.  Road accidents account for half the deaths of New Zealanders aged between 15 and 24, and many more suffer permanent disability.  The answer to these problems clearly does not lie in building more hospitals, but in greater education of the public.  PREVENTION BETTER  THAN CURE.  Our health services are increasingly willing to set and work to priorities. Many are accepting the need to place more emphasis on the community, the educational, and the preventive, and less concentration on the institutional, the restorative and curative.  The educative process of persuading people to change their behaviour is a long term one. The ultimate answer lies with the individual, but National recognises the important role it can play in its commitment to preventive medicine and health education.  The least expensive accident to attend is the one that didn't happen.  The least expensive medical problem to fix is the one that was prevented from occurring.  NATIONAL'S COMMITMENT.  To summarise, National's policy is to maintain the integrity of our present health services with their unique blend of public, private and voluntary sectors.  Within the overall global sum of resources currently available for health purposes, National will seek to enhance our present health services. We will encourage greater efficiency and give growing emphasis to community health services and the prevention of ill-health.  Our horticultural efforts are bearing fruit for your future.  “The past five years have seen a growth boom in horticulture. Production has increased, new plantings have been undertaken, and new marketing opportunities have been pursued. The future looks bright indeed.” Rt. Hon. Duncan Macintyre – Deputy Prime Minister, Minister of Agriculture.  HORTICULTURE AND NATIONAL'S GROWTH STRATEGY.  Horticulture is one of the more important elements in the growth strategy of the National Party, and one of the most exciting.  It offers bright prospects for foreign exchange earnings, for employment, for utilisation of natural resources, for the social and economic development of rural areas, and for the development of scientific know-how which we already possess in large measure.  We have suitable land, a favourable climate and extremely good market prospects.  Certainly the incentives and prospects are there. A National Government will ensure that the finance and the organisation is provided to take advantage of the situation.  A $700 MILLION  INDUSTRY BY 1990.  With the right mixture of investments, skill and marketing expertise, horticulture (including small seeds) can be earning as much as 700 million in overseas exchange by 1990.  In the calendar year 1980 it earned $191.8 million which means a 265% growth prospect over the next ten years.  ANOTHER 35,000 JOBS.  More New Zealanders would like to live and work on the land. Horticulture will give many the chance they seek.  More than 20,000 people are now employed in some form of horticulture. But with the sort of growth we now have, we confidently expect that number to reach 55,000 during this decade.  An increase of that size in a predominantly rural workforce will bring other social and economic benefits.. .and still more people to the countryside.  THE WORLD WANTS OUR FRUIT AND PRODUCE.  People all around the world want our produce and we can supply it.  About 10% of our land is suitable for horticulture, but we are currently using only about 0.2% for that purpose. There is literally much room for growth.  We have already had our successes. Everyone knows the kiwifruit story and about our rapidly developing wine industry. But horticulture broadly covers all non-pastoral agriculture. Grapes, nuts, honey, plants, flowers and seeds, vegetables and fruits. The world wants more and more of these products.  There is really no limit to what we can hope to produce and sell overseas... from Saudi Arabia to California and from West Germany to Japan.  THE MORE WE GROW, THE MORE WE CAN SELL.  No longer is our horticultural production just consumed by New Zealanders. Our increased production is for export. The target is an industry that exports 90% of a much expanded production output, the same proportion of exports as is now achieved by our lamb, wool and dairy producers.  We not only need a hugely increased production, we need a properly organised approach to marketing. .I  It was in response to the needs of New Zealand horticulturists for up-to-date information and co-ordinated planning that firstly the Horticultural Export Development Committee, and subsequently the Horticultural Exporters' Council were established.  There is much more to be done.  Individual initiative and imagination are essential, but consistent quality, reliability of supply and strong selling will put the ultimate seal of success on the horticultural export industry.  A National Government will be supporting and encouraging efforts in this direction.  THE MORE YOU LEARN, THE MORE YOU GROW.  Horticulture offers young New Zealanders with initiative the opportunity to live and work on their own land.  We regard horticulture as one of the growth areas for which skills can be provided through the Young Persons' Training Programme.  National will continue to support this and other schemes, like the Farm Employment Scheme, which provides incentives to private sector employers.  KNOW-HOW FOR A GROWING INDUSTRY.  Enormous strides are being made in horticulture by the application of scientific research. In fact, New Zealand's Department of Scientific and Industrial Research is right in the forefront.  Our scientists are working in the areas of harvesting, storage, packaging and transport,  and the development of new and more productive varieties.  National will ensure that high priority continues to be given to this work of national  importance.  The scientists are also looking at species new to New Zealand such as pepinos, casana, babaco, and cherimoya.  The potential is great. The prospects are extremely good.  ENCOURAGING GROWTH THROUGH MODERN SKILLS  AND TECHNOLOGY.  THE MONEY TO GROW.  The National Government has already provided an economic climate within which the horticultural sector can grow.  Because of this, big strides have been made, and the industry can now compete successfully for finance in the marketplace. But the Rural Bank still has an important role to' play in providing finance for new horticultural development.  The bank will continue to provide loans for experimental fruit crops; industrial loans for cool stores and packing houses; plus regional development assistance and loans for opportunity studies.  National will also continue to provide tax incentives for horticultural development.  PATHWAY TO ECONOMIC AND  SOCIAL GROWTH.  Enterprising New Zealanders are seeing the horticultural opportunities that are there and waiting. And they are wasting no time in taking advantage of them.  The role of the National Government is to back them all the way.  Horticulture offers a clear pathway to economic and social growth. And New Zealand horticulture can truly be said to be an all-New Zealand growth industry.  It is, after all, home-grown.  Everyone wants a place to call home.  "With over one million homes for our three million people, New Zealand is one of the best housed nations in the world. With 70% of these houses being owner occupied our level of home ownership is one of the world's highest. National intends to keep it this way.” Hon. Derek Quigley, Minister of Housing.  A HOUSING RECORD TO BE PROUD OF.  In the last 5 years over 100,000 new houses have been built, and this is at a time when the population increased by only 38,000. National's housing policy is designed to ensure there are sufficient houses for every New Zealander to have a place to call home.  And this policy is working. Last year 24,000 New Zealand families purchased their first home, and 7,000 families were allocated state rental housing.  National's housing policy recognises and provides for two categories of home seeker. There are those who are prepared to work and save for their own home, and those who for one reason or another cannot afford to house themselves.  HOME OWNERSHIP MADE EASIER.  For persons who have shown a willingness to help themselves  National's housing policy offers generous incentives based on the principle that loans follow savings.  • National's home ownership savings scheme, which provides a 45 cent tax rebate for every dollar saved, has been amended to the further advantage of the prospective home buyer. The minimum period for saving has been  reduced and the amount that can be saved in a year has been increased. In addition private savings banks have been authorised to operate home  ownership accounts.  • National, concerned that interest rates can be very daunting to the first home seeker, has introduced a 50% tax rebate concession on mortgage interest on a first home. The maximum rebate of $1,000 per year amounts to a tax reduction of $19.23 per week.  • Stamp duty is no longer payable on the first $50,000 of the purchase price of a home.  • Persons who live for ten years or more in tied accommodation can now borrow from the Housing Corporation to purchase a first home without being required to live in it.  YOUR RIGHT TO CHOOSE.  National has changed the direction of Housing Corporation policy to ensure that top priority is given to the needs of first home seekers. Borrowers can now choose whether they buy an existing home or build a new home.  This change in policy has been widely acclaimed and has resulted in a dramatic reversal in borrowing patterns. Borrowing for existing home purchase now far exceeds borrowing to build, reflecting the fact that first home seekers are currently able to save around $12,000 to $15,000 by purchasing an existing home.  National will continue to ensure that first home seekers have this right to choose.  HELPING THOSE IN NEED.  National will continue to ensure that sufficient state rental housing is available to house those who cannot afford or are unable to house themselves. In the last five years some 7,600 dwelling units have been built for or purchased by the Housing Corporation. There are now more than 60,000 State rental units to meet a demand which has been falling steadily since 1975.  National will continue to encourage State tenants to purchase their own property. Positive encouragement is provided through the Tenancy Savings Scheme and reduced deposit requirements.  Priority will continue to be given to pensioner housing and the special needs of the disabled.  SUPPORT FOR THE BUILDING INDUSTRY  National has given the building industry special support through a time of lower demand for new housing. A $4,000 building suspensory loan is currently available to those borrowing from the private sector to build, and preferential loans are available from the Housing Corporation.  The building industry is now experiencing a lift in demand for new houses. But now new houses are being built by those who are better able to  afford them. This in turn is freeing up existing housing for purchase by first  home seekers. All benefit from this process.  With the economic growth anticipated for the 1980s there will be a steadily increasing demand for new housing. With present policies the building industry has a bright future. It is not a time for major policy changes.  NEW LIFE FOR OLD HOUSES.  National is giving much greater emphasis to the upgrading of old houses. Incentives have been provided through the CHIP programme to encourage local authorities and individuals to undertake improvement programmes. Home Improvement Loans of up to $10,000 ($12,500 in Neighbourhood Improvement Areas) are proving very popular with home owners. These programmes are generating additional work for the building industry and leading to a substantial improvement in the quality of our housing.  HOUSING IN THE 1980S.  To maintain our high level of home ownership, we must have a healthy economy. National's growth strategy will ensure economic growth throughout the 1980s. It will provide the financial resources to ensure that the people of New Zealand are well housed.  While housing policy will be adapted to meet changing social needs, the key emphasis of National's housing policies will be to ensure that:  •the right incentives are in place to encourage people to save for home ownership.  • first home seekers are able to choose what is best for them.  • adequate finance is available through the private sector.  • the Housing Corporation can concentrate on its traditional role of assisting low income families.  • subsidised rental accommodation is available for those in need.  • there is a greater degree of stability for the building industry.  National's goal will be to ensure that everyone has a place to call home.  ENCOURAGING GROWTH THROUGH INCENTIVES.  We all want industrial harmony so that we can get on with the job.  “If the 1980s are to be a time of progress in New Zealand there will need to be a mood of co-operation in industrial relations. If we allow foreign ideologies to be dominant, it will be because we New Zealanders do not care sufficiently for our own country". Hon. Jim Bolger, Minister of Labour.  INDUSTRIAL RELATIONS AND NATIONAL'S GROWTH STRATEGY.  The 1980s will be a time of change in New Zealand. If it is also to be a time of progress, employers and workers will need to co-operate more, avoid confrontation and seek to reduce the causes of disputes. In the economy, energy is the catalyst for change; in the workplace the catalyst will be better communication between employer and employee.  PROMOTING FAIR LAWS.  National believes the responsibility for promoting fair laws and administration, and providing the procedures necessary to maintain a balance between the social partners, lies with the Government.  The philosophy behind New Zealand's industrial law has changed little since the original Industrial Conciliation and Arbitration Act was passed in 1894. However, as dramatic changes have taken p lace in attitudes and the workplace since then, we will review the law' to ensure it meets the needs of a modern society.  The law must also reflect changes occurring in the community. Examples of such laws include the recent Shop Trading Hours Amendment Act to liberalise Saturday shopping, and the Factories and Commercial Premises Act which provided for a more flexible approach to commercial activity. Changes in community attitudes are also accommodated by recent legislation to protect the employment rights of women who take maternity leave.  NO GROUP CAN BE  OUTSIDE THE LAW.  The Industrial Relations Act currently provides significant benefits to trade unions in terms of the coverage it gives over groups of workers. While unions are quick to claim these benefits, some disregard those procedures in the law designed to promote the settlement of disputes peacefully rather than by the use of industrial action.  The rule of law and the ordinary principles of the legal process must apply to the whole community. National does not accept that an industrial action such as picketing justifies unions breaking the law.  PROTECTING THE  PUBLIC INTEREST.  National accepts it is not possible to legislate to solve all industrial issues. The prime responsibility for finding solutions to industrial disputes must always remain with employers and unions but assisted where necessary by Government. In particular, National maintains that the elected government must, if the need arises, present and represent the views of the general public who are also affected by disputes and strikes.  The recently passed Industrial Relations Amendment Act reflects this view and contains provisions to safeguard the public interest in disputes in essential industries. Such provisions cover the operation of hospitals, the maintenance of essential transport services and the provisions of services in the dairy and meat industries. It also makes provision for the Minister of Labour to refer disputes in essential industries to the Arbitration Court for settlement in order to minimise disruption of vital public services.  RELATING WAGES  TO REAL GROWTH.  The aim of National's wages policy is to ensure negotiated wage rates are consistent with the need to contain inflation and improve employment opportunities.  Growth in real wages depends on growth in the economy. Therefore, the policy of free wage bargaining, followed since 1977, can only continue if both employers and trade unions negotiate wage rates consistent with New Zealand's economic performance.  Should the parties not reach satisfactory agreement, the Government must consider the introduction of wage controls to ensure that balance is maintained.  In an effort to reduce wage push inflation, National endeavoured to obtain the agreement of the Federation of Labour and the Combined State Unions on a wage-tax package which would have benefitted all New Zealanders. This wage-tax package is still desirable and will be an objective of a National Government.  NEW JOBS FROM NEW TECHNOLOGY.  New Zealand has always adopted modern technology, especially in our export sector. The strength of New Zealand agriculture is directly related to New Zealand's modern farming techniques, where we must continue to lead the world.  Industry must be in a position to take advantage of new technology to remain competitive. To try to control the introduction of technology by centralised decision making will delay and diminish the benefits of technology to the community. However, consultation between management and workers prior to the introduction of technology is essential.  The use of technology in one sector can directly stimulate demand for goods and services that create new employment opportunities in other areas. For example, more than 17,000 persons are now employed in new technology industries which did not exist a decade ago.  A RESPONSIBLE APPROACH TO  REDUNDANCY.  New Zealand has a very mobile labour force with hundreds of thousands of workers changing jobs every year. There is also a constant pattern of new industries opening while others close.  To date, the amount of redundancy paid has been determined by the parties involved. However, because of the size of redundancy claims now being sought by unions, Government intervention may become necessary. National will give consideration to defining when redundancy payments should legitimately be made and to the establishment of both minimum and maximum levels of payments.  In seeking to protect the rights of workers made redundant, it is essential a situation does not develop where employers are reluctant to take on staff because they may subsequently be faced with excessive redundancy payments.  The key to handling redundancy remains effective consultation aimed at redeploying or retraining the affected workers.  SKILL NOW ESSENTIAL.  A changing work environment means an increased need for retraining and upgrading of skills. Education and training systems must be flexible enough to adapt quickly to change.  Training Development Assistance is provided to stimulate the development of additional training. Thirty-one industry training boards have been established so far and these work with the Vocational Training Council to meet industry needs.  Work Skill Development Programmes, Young Persons Training  Programmes, work- based operator training at sub-apprenticeship level and job exploration programmes have all been introduced by National. Two incentive schemes to support trade training are also in operation.  Some young people are being denied employment opportunities because, in some cases, wage rates are set too high. We are working to ensure that awards provide for graduated wage rates for inexperienced young people as a way to encourage employers to provide more job opportunities.  Retraining assistance is now available for displaced workers whose skills are no longer in demand.  PRODUCTIVITY THROUGH  PARTICIPATION.  National believes sensible worker participation can be a key to improved productivity and reduced friction in the employer/employee relationship. Employers must be prepared to share more information with their employees by a fuller disclosure of company objectives. However, National does not believe that the terms of worker participation should be imposed on the parties.  GOOD RELATIONS THE KEY.    Good industrial relations are a key to social and economic progress.   National will take every opportunity to promote among workers and   management an increasing sense of their responsibility to their   country.  ENCOURAGING GROWTH THROUGH HARMONY AND TRAINING  Your freedoms are always worth protecting.  "Each one of us is expected to obey the law – and we are entitled to expect that others will do so as well. The law should enhance individual freedom, treat everybody equally, create equality of opportunity and protect people from criminals. We will continue to ensure that our laws are fair and that they reflect the values and needs of our society." Hon. Jim McLay, Minister of Justice.  THE LAW MUST BENEFIT EVERYBODY.  We believe in the Rule of Law as the basis of freedom in a democratic society. Laws should be made only by Parliament and enforced only through the Courts. There can be no place to which the law does not reach; the picket line and the gang must never usurp the role of Parliament and the Courts. We will continue to improve our Court system, thereby giving everyone better access to justice and ensuring that criminals are dealt with more speedily.  NATIONAL'S AIM: FEWER AND MORE EFFECTIVE LAWS.  The law should treat everybody equally. It cannot create equality but can ensure that everyone has the same opportunities. Laws should only intrude in the lives of individuals when their actions prevent others from exercising THEIR rights.  Too much law makes red tape. Our aim is for fewer but more effective laws. We will continue repealing outdated laws and regulations that interfere with the rights of the individual so that the law works for, rather than against, the interests of the individual. Particularly, we will develop new laws and procedures to protect individual privacy, and to restrict powers of entry into private homes.  A DEMOCRATIC  TRADITION CONTINUED.  Our longstanding democratic traditions have been continued and enhanced by the recent major revision of our electoral laws, and by this year's freedom of information legislation which will improve communication between the citizen and the Government and ensure that it is more accountable to the people.  YOUR PROTECTION  IS PARAMOUNT.  We are determined to protect the citizen, thereby enhancing his or her freedom; whether it be to protect school children from the drug pusher; or the road user from the drunken driver. Whether it be to protect the right to work without interference from picketers; or to ensure that everyone can safely walk the streets without being molested by criminals and hooligans. We have given the Police the personnel, money, and powers to ensure their continuing strength, effectiveness, and morale; have given the Courts power to confiscate vehicles used in the commission of crimes; and will pass legislation to protect women and children from domestic violence  We will continue to make changes that protect the citizen and deter the criminal; and will introduce laws that will allow the Courts to impose increased or deterrent sentences for major violence, drug dealing, and white collar crime.  We will place a greater emphasis on the plight of the innocent victims of crime -giving them support and providing better laws for restitution and reparation so that, as far as is practicable, offenders repair the harm done to their victims. We recognise that while many crimes justify - and will receive -longer terms of imprisonment, we have too many people in our prisons for relatively minor offences. Following the successful introduction of the Community Service sentence we will broaden further the range of sentences available to the Courts so that minor offenders serve their sentences in the community at less cost to the taxpayer.  We are going to develop new criminal bankruptcy rules for the confiscation of the proceeds of criminal activity. The drug dealer will not be allowed to leave prison to live in luxury on the profits of his evil trade.  OUR FAMILY CONCERN.  The family is the essential cornerstone of society.  It is a model for a sharing and caring society. Our policies are designed to enhance that family partnership. Having established Family Courts and extensively rewritten our family laws, with a greater emphasis on counselling and preserving the family unit, we will continue to support the family in every way possible, thereby providing support for a better ordered community.  WE'RE COMMITTED TO REFORMING OUTDATED LAWS.  NO Government in recent times has ADOPTED a more effective policy of reforming and modernising our outdated laws. We have demonstrated our willingness to preserve that which is good in our legal system and to change that which needs changing. We will...  Promote respect for both equality and individual rights; the right to walk safely in the    streets; the right to freedom; the right to own and retain property;   freedom of expression; and the right to the protection of the law.  Provide commercial laws which protect the consumer and set the wide boundaries of    commercial activity but do not interfere with legitimate, competitive,   free enterprise.  Further protect the privacy of the individual.  Maintain and enhance a democratic Parliamentary system that commands the respect of    everyone; particularly by the further development of such instruments   as the Official Information Bill which makes Governments more   accountable and involves the people even more in the democratic   process.  Our manufacturing exports will create 100,000 new jobs at home.    4  "The manufacturing sector has moved into the 1980s in a confident manner. A very positive approach has been adopted in challenging times and ambitious growth targets have been set. National will pursue policies that promote this mood of confidence and enable the targets to be met." Rt. Hon. Lance Adams-Schneider, Minister of Trade and Industry.  SPECTACULAR GROWTH IN  MANUFACTURING.  The growth in manufacturing exports in the last five years has been nothing short of spectacular - up 126% in volume and 284% in value.  The manufacturing sector has taken a very positive approach in challenging times and has set ambitious growth targets The declared aim is to increase the percentage of production exported from 10% in 1980 to 16% in 1984. The industry is well on target to achieve this goal.  100.000 NEW JOBS.  EXPORT incentives have provided the impetus for this export growth, but the efficiency, enterprise and marketing skills have been provided by the manufacturers themselves.  The projected growth in manufacturing, particularly for exports, is expected to result in at least an extra 60,000 jobs being created by the middle of the decade and around 100,000 by 1990. Manufacturers are confident that they can earn a much larger share of New Zealand's export income in the decade ahead.  MANUFACTURING AND NATIONAL’S GROWTH STRATEGY.  Manufacturing is, then, a very important part Of National's growth strategy for future prosperity. One aspect of the growth strategy has been the industry development studies which are due for completion next year. These studies have required particular industries to look at their own operations, their future in the New Zealand and overseas markets, and the steps necessary to build strong competitive industries.  The direction of future development will be built around:  • what protection efficient production needs.  • continuity of employment in secure industries.  • more exports based on New Zealand resources and import replacement industries.  • continued encouragement of New Zealand added value.  From this base we will develop investment, technology and jobs.  PROMOTING EFFICIENT INDUSTRIES TO GUARANTEE JOBS.  National's commitment is to continue to promote the establishment of private  enterprise ventures, small, medium and where necessary, large. The aim is to actively  promote efficient industries which are able to face world competition and provide goods of reasonable price and good quality to consumers. This is the best method of  achieving sustainable growth and to guarantee jobs and will be achieved by:  • encouraging further development of efficient manufacturing, working in co-operation with the Manufacturers' Development Council, the Planning Council and the New Zealand Manufacturers' Federation.  • assisting small business through The Small Business Agency, the Applied Technology Programme, and the Venture Capital Facility.  • providing effective protection, through tariff and import licensing, for New Zealand manufacturing industries.  • continuing to free-up industry from unnecessary regulation and control, (for example, price control), and giving greater encouragement to free competition.  • encouraging the use of New Zealand resources.  CONSULTATION AND CO-OPERATION.  National will continue to liaise closely with the manufacturing industry to ensure that its advice is taken into consideration in setting the economic direction for New Zealand. National will strengthen the Manufacturing Development Council to ensure that its views are taken into account in economic planning.  Manufacturing export incentives, which have played a major role in export development, will be continued until 1985 and then only changed following consultation with the industry.  We will continue to ensure that New Zealand manufacturers have every opportunity for tendering for contracts for major projects that are within the capability of the industry.  National will ensure, in liaison with the Trade Association concerned, that New Zealand industry obtains a substantial share of orders for government purchasing, as well as off-set and counter purchase arrangements in respect of government buying and tendering overseas.  MAJOR TAX REFORM.  National is committed to a major reform of taxation and has set up a Tax Reform Committee to recommend the appropriate course of action. This Committee will be looking at company tax as well as personal income tax. The Committee's recommendations will be considered for the 1982 budget.  GROWTH THROUGH  NEW TECHNOLOGY.  The new technology industries will be a very important growth sector in the 1980s. We will encourage the continued upgrading of technology and skills in New Zealand industry. We will also actively promote manufacturing growth opportunities in new technology industries.  To further stimulate growth, National will continue to encourage research and development through the Development Finance Corporation, Government departments, universities and in the private sector.  CAPITAL FOR GROWTH.  We will investigate ways of ensuring adequate venture capital can be made available from private and public sources to assist growth in manufacturing.  NEW MARKETS.  We will continue to work with the industry in seeking new markets and in retaining existing markets for our products.  We will pursue closer economic relations with Australia to ensure that the broad based trading relationships developed under NAFTA continue to flourish in the 1980s. At the same time, there will be full consultation with the manufacturing sector to safeguard the interests of New Zealand industries.  PROTECTING THE CONSUMER.  National will continue to review consumer legislation to ensure the rights of consumers are protected and to establish fair competition. We will implement reasonable restraints to counter monopoly, near monopoly and unfair trade practices in the market place.  PROMOTING CONFIDENCE.  The manufacturing sector has moved into the 1980s in a confident and positive fashion. National is committed to the pursuit of policies that will promote this mood of confidence and assist the industry to achieve the ambitious growth targets that have been set.  ENCOURAGING GROWTH THROUGH MODERN SKILLS    AND TECHNOLOGY.  Self-determination is the source of self-esteem.    UI    "About one tenth of New Zealand's population is Maori. The Maori   people give New Zealand a diversity that enriches all of us, and a   cultural tie with our neighbours in the South Pacific that makes our   country unique in the world." Hon. Ben Couch, Minister of Maori   Affairs.  HARMONY BUILT ON MUTUAL RESPECT.  National is convinced that true harmony between the races in New Zealand must be built on mutual respect. The days of a paternalistic government guiding the Maori people on a path of assimilation are over Instead, under National, the Maori people have put into place the Tu Tangata philosophy, for growth, independence and cultural identity.  The Tu Tangata programmes are designed to encourage Maoris to take a greater role in New Zealand's social, cultural and economic life, and to draw on the strengths of distinctly Maori institutions and values. Maori people are being encouraged to “stand tall" and to grow in self confidence.  Tu Tangata recognises the ability of the Maori people to make their own decisions and find their own solutions. It's called self-  determination.  THE CHALLENGE OF CHANGE.  The Maori people have, over the last half century, faced a number of major challenges.  Rapid urbanisation has meant that tribes have lost some of their  unity. The family, the basis of all Maori life, has been under threat. Some of the young have had no one to guide them, the old have had no one to teach. Without this life stream, the heart of Maoridom has slowed its beat.  The Maori population is very young. This makes it particularly vulnerable to social and economic changes. There are more Maoris aged nine than there are in any other single age group. Educational affainment has not yet reached parity with non-Maoris. For the Maori to retain their separate identity and their cultural heritage, their socioeconomic base must be raised.  However; the Maori has two great resources - land and the people.  A RICH AND READY RESOURCE.  Land provides the spiritual base of Maoridom. Today, it also provides an economic base which is being rapidly developed. The desire of Maori landowners to use their land to the fullest advantage both socially and economically is being encouraged.  Land development provides a source of local employment, income, and often a chance for those who work the land to develop specialist skills. More importantly it can provide an economic vehicle for the resurgence of Whanautanga, (the family and tribal standing).  National is encouraging land development and will continue to make finance available for this purpose through the Maori Affairs Department, the Rural Bank and Maori Trust Boards. In the year ended 31 March 1981, $7.28 million was loaned to Maori farmers.  Perhaps the most exciting development is occurring in the area of horticulture. National has increased horticultural loans through the Maori Land Board by 60%. Horticultural enterprises have become an immediate way in which Maori land can be used advantageously, providing immediate employment opportunities.  Assistance is also being provided for such ventures as oyster, mussel and eel farming.  SYMPATHETIC APPROACH TO MAORI LAND.  The Maori Affairs Department is developing 118,096 hectares of land. National will continue its policy of encouraging the Maori owners to manage this land.  A number of Maori land claims remain unresolved. In most cases these claims have been dismissed in the past through strict interpretation of the law. However; with National's desire to achieve moral justice, a review and settlement of some claims, such as the Tauranga Land Claim, has been possible. Other claims will continue to receive attention on a sympathetic basis.  KEEPING THE IDENTITY INTACT.  The Maori population is predominantly made up of very young people. (64% are under the age of 24). These young people have the right to the same opportunities as other New Zealanders. At the same time, they must be able to maintain their cultural heritage of which they are justly proud. This is the philosophy behind Tu Tangata.  National believes that the development of the urban marae is essential for the retention of Maori identity.  The building and upgrading of maraes is Currently at the highest level ever. Last year, over 150 maraes received grants and subsidies from the National Government.  The marae is the most important place of all for learning the Maori language. National believes that Maori language must flourish at all levels of society. Funds have been provided to train Maoris who are already fluent in their own language to teach others. Language groups have been set up in homes, maraes, garages and offices. Nearly 50,000 pupils are voluntarily learning Maori within the formal education system, a vast increase over past years.  CLOSING THE ACHIEVEMENT GAP.  National recognises that one of the challenges of the 1980s is to close the gap between Maori and non-Maori achievement rates at school. The Tu Tangata programme is encouraging the involvement of Maori parents in all facets of their children's education. Health of all children especially their eyesight and hearing, is checked in schools.  Support is given to homework centres and a ten year plan has been mounted to improve the level of education.  The plan is working.  National's growth strategy will provide thousands of jobs for all New Zealanders over the next five years. In addition National has developed a number of policies that will specifically assist unemployed Maoris, particularly those who leave school without qualifications.  National has increased the number of technical and trade training courses for Maori students throughout the country. The number of students going through these courses has increased from 814 in 1979 to 1498 in 1981.  The courses now include agriculture, fishing, horticulture, catering, computer programming, accountancy and Maori language. These training courses are designed to provide skills to enable the students to find a satisfying place in the workforce.  STANDING TALL  (TU TANGATA).  Through the Tu Tangata programme and new business lending policy National is encouraging the Maori people to enter business on their own. Increased Maori participation in higher income occupations is a key to enhanced socio-economic status.  National believes the Maori cultural identity must be retained. We will continue to provide the tools for the Maori people to develop their two greatest resources, land and people. The Maori race will continue to stand tall under a National Government.  ENCOURAGING GROWTH THROUGH SELFDETERMINATION.  Overseas trade is our passport to prosperity.  "The success of New Zealanders as traders on the world market is vital to the expansion and development of the New Zealand economy. We need exports to enable us to pay for the imported goods that we require. Under National, an excellent export record has been set.   Since 1975 the volume of exports has increased by 40%, an annual average growth rate of 6.6%." Rt. Hon. Brian Talboys, Minister of Overseas Trade.  EXPORT GROWTH IN NEW MARKETS.  NEW ZEALAND'S TRADING PATTERNS HAVE UNDERGONE HUGE CHANGES IN THE LAST TWO DECADES. IN 1960 OVER 50% OF OUR EXPORTS WENT TO THE UNITED KINGDOM. BUT NOW LESS THAN 16% IS GOING TO THAT MARKET. MAJOR GROWTH HAS OCCURRED IN OUR EXPORTS TO JAPAN, AUSTRALIA, THE MIDDLE EAST, THE ASEAN NATIONS AND THE PACIFIC.  NO MAJOR MARKET NOW TAKES MORE THAN 16% OF OUR EXPORTS BUT, IN A WORLD THAT IS INCREASINGLY UNSTABLE, NEW ZEALAND IS NO LESS VULNERABLE.  TO IMPORT WE MUST EXPORT  THE ENORMOUS INCREASES IN OIL PRICES, AND THE EFFECTS OF THESE ON THE COST OF OTHER IMPORTED GOODS, MEANS THAT THERE CAN BE NO RELAXATION IN EFFORTS TO EXPAND AND DIVERSIFY GOODS FOR EXPORT.  IN 1972, NEW ZEALAND'S OIL IMPORTS COST $93 MILLION-THE EQUIVALENT OF ONE-FIFTH OF THE VALUE OF EXPORT EARNINGS FROM ME AT. THIS YEAR NEW ZEALAND'S OIL BILL WILL BE MORE THAN $1,500 MILLION. THAT EQUALS THE TOTAL VALUE OF OUR MEAT EXPORTS, EVEN THOUGH SINCE 1973 THE PRODUCTION OF MEAT FOR EXPORT HAS INCREASED BY 100,000 TONNES.  CONTINUING TRADE WITH TRADITIONAL PARTNERS.  The National Government has resisted the increasing trend towards protectionism adopted by our traditional trading partners in Europe, North America and Japan. These markets, with Australia, buy around 70% of our exports.  Considerable time and effort has been spent maintaining satisfactory arrangements for the entry of sheepmeat and dairy exports to the European Community. National is working to achieve a long term economic treaty with the EEC. National will also work to protect the trading interests of New Zealanders in the United States and Japan.  National has revitalised trading links with Canada by negotiating a new Trade and Economic Co-operation Agreement.  CLOSER UNKS WITH AUSTRALIA.  National believes that we have no closer identity of interest than with Australia.  At the centre of the trans-Tasman relationship is the trade link. The significance of this to New Zealand is growing. Trade has expanded considerably; exports for the June year 1981 were over $800 million and imports over $1,000 million, confirming Australia's position as a vital trading partner for New Zealand.  The negotiations leading towards a closer economic relationship with Australia will ensure that the broad based trading relationship developed under NAFTA continues to flourish in the 1980s.  EXPLORING NEW EXPORT OPPORTUNITIES.  In addition to seeking to protect and develop trade with New Zealand's traditional partners, National continues to work to facilitate new market opportunities.  The countries of North East and South East Asia now provide markets for over one-quarter of New Zealand's exports, an equivalent amount to that sold to the European Community. The dynamic economies of this area provide excellent growth opportunities for New Zealand exporters.  Exports to the ASEAN countries alone have increased by 41% over the last year. National has ensured that political and economic relations with these countries have developed considerably in recent years by establishing an official "dialogue" with ASEAN.  Important new markets for sheepmeat and other products have been developed in the Middle East. South America is another region with considerable potential. National has expanded the network of diplomatic and trade representation in these regions to assist New Zealand exporters. As well, official links have been established with Kenya, Nigeria and Tanzania.  Further representation overseas will be in line with New Zealand's economic interests.  INCREASED EARNINGS AND NEW JOBS FROM NEW PRODUCTS.  In addition to diversifying markets, National has encouraged a diversification of products for export. Emphasis has been placed on adding value in New Zealand to earn more foreign exchange - this increases employment opportunities at home.  The technical and scientific resources of Government Departments such as the Ministry of Agriculture and Fisheries and the DSIR have been increasingly involved in assisting exporters. New horticultural crops have been developed, new manufacturing processes pioneered.  INTERNATIONAL CO-OPERATION TO OUR ADVANTAGE.  National believes we can benefit from technological transfers and joint ventures. To facilitate these, National has entered in to arrangements with the United States, Canada, West Germany, Japan, Singapore and a number of other countries.  We have also positively encouraged the export of professional services.... a rapidly increasing source of overseas earnings for New Zealand.  In addition to the export of goods and services, joint venture activity by New Zealand companies overseas is assuming increasing significance as an earner of overseas exchange.  PROMOTING EXPORTS.  National will continue to direct resources into effective marketing by mounting trade missions, continuing to sponsor missions into New Zealand of potential buyers and by assisting exporters to participate in overseas trade fairs.  There is always a risk involved in marketing internationally. National will continue to expand support for the Export Guarantee Office. Ways of further assisting exporters through the use of export credits will also be examined.  AID THROUGH TRADE.  National has recognised the need to assist developing countries, particularly in the South Pacific.  The Pacific Islands Industrial Development Scheme was designed to encourage New Zealand involvement in industrial development projects in South Pacific countries. National has also sought to provide additional opportunities for South Pacific countries to export to New Zealand through the SPARTECA agreement.  EXPORT GROWTH KEY  TO PROSPERITY.  The 40% growth in the volume of goods exported since 1975 has enabled New Zealand to come through the 1979 oil shock in much better shape than many countries around the world. Our exporting industries have performed magnificently.  National will continue to encourage those engaged in exporting. Export incentives, which have played a major role in export development, will be continued until 1985 and then only changed following consultation with the appropriate industries.  National's export led growth strategy is the key to New Zealand's prosperity.  ENCOURAGING GROWTH BY  ENCOURAGING EXPORTS.  Growth is taking place in every region of New Zealand.  "We live in a world very different from that of a decade ago. Events beyond New Zealand's control and particularly the oil shocks of the 1970's have seen to that. Change has been demanded of us. But the impetus of change also provides opportunities for those prepared to take them.” Hon. W.F. Birch, Minister of National and Regional Development.  NATIONAL'S GROWTH STRATEGY...BUILDING ON WHAT WE DO WELL.  New Zealand is resource rich in a resource-hungry world. The challenge is to make the best use of those resources.  National has responded to the challenge and has set New Zealand on a dynamic path that will provide new opportunities today and safeguard our tomorrow.  National's growth strategy is export oriented and builds on what we do well. It is based on:  • the promotion of exports from our land based industries, from manufacturing, tourism and fishing.  • the drive towards self sufficiency in energy.  • the development of new resources.  IMPORTANT ROLE FOR  SMALL BUSINESS.  It is a strategy that recognises the importance of small business and family enterprise in the New Zealand economy. It is a strategy to utilise our regional resources for the benefit of both the regions and the nation.  The development of our resources is necessary if we are to achieve our objective of a real rate of growth of 3% or more per year throughout the 1980's. That growth rate is essential if we are to provide increasing employment opportunities and maintain the standard of living and quality of life to which we have become accustomed.  ECONOMIC GROWTH BASED ON GROWTH IN THE REGIONS.  Economic growth will come from growth in the regions. That is what regional development is all about.  Each region has its own characteristics, its own advantages and its own resources  In each region the opportunities are waiting for us to grasp and build on, starting with those things we do well, then diversifying to develop new products for new markets in a changing world. The result will be a stronger economy selling a wider range of goods to a greater number of countries around the world.  Successful resource development is dependent on the initiatives taken within each region, particularly by the private sector. National believes the role of central Government is to co-ordinate regional and national planning, encourage and support local enterprise, foster the full use of resources in each region and, determine parameters which will encourage and reward initiative. National will encourage the initiative and independence that is the vital element of our free enterprise system.  Local authorities will be encouraged to develop more flexible district schemes to better provide for the new style of development now occurring throughout New Zealand.  GROWTH THROUGH OUR ENERGY PROJECTS.  Growth is taking place throughout New Zealand through projects such as:  • The Marsden Point Oil Refinery expansion in Northland.  • Natural gas reticulation and the development of new CNG outlets across the North island.  • The LPG distribution network throughout both Islands.  • Electricity generation projects in both the North and South Islands.  • Aluminium smelter developments in Southland and Otago.  • Other electricity intensive industries established in the South Island to take advantage of the Government's 25% regional development incentive.  New Zealand cannot afford to lose time in the drive towards energy self-sufficiency. That urgency, and the need to consolidate planning requirements, resulted in the National Development Act of 1979, giving a “fast track" procedure for projects of national importance.  SMALL BUSINESSES WILL BENEFIT.  The combined impact of promoting our traditional industries along with our new energy based industries, is already proviiding growth in the regions. The pace is quickening as project contracts are let.  In each region small businesses will reap the benefit of this increase in economic activity.  In our traditional sectors, it is our family enterprises and small businesses that provide the thrust. The new energy based industries will require a strong supporting infrastructure which can only be provided by small businesses.  Our small enterprises have demonstrated in the past, and will show again, that they have both the initiative and the ability to respond to new opportunities for growth.  National has put in place a comprehensive range of incentives and services for the small business. The Development Finance Corporation, through its Small Business Agency; the Department of Trade and Industry; the Rural Bank; the Export-Import Corporation and the Regional Development Councils, are all encouraging and supporting small  business enterprise.  REGIONAL DEVELOPMENT  PROGRAMME.  National's regional development programme is an important part of National's overall plan for growth in the regions.  Additional financial support is provided through regional development policies, and is attracting new investments and industries to the regions, assisting in business growth and generating employment opportunities.  An extra 4,520 jobs have been created in Regional Development areas as a result of the financial support provided through the programme over the last five years.  Marine farming has been encouraged too. It is now an important growth industry in some regions, particularly Canterbury Rivers, Marlborough, Coromandel, and Northland.  GROWTH FROM  MANUFACTURING.  The Manufacturing sector is aiming to increase the percentage of production exported from 10% to 16% and will provide extra jobs in the process. It is well on target to achieve this goal.  There has been a 126% increase in the volume of manufactured goods exported since 1975. Export incentives have provided the impetus but the efficiency, enterprise and marketing skills have come from the manufacturers.  The 25% electricity concession has proovided a positive incentive for both domestic and export oriented industries to locate in the South Island, particularly in Canterbury and Otago. The development of low volume high value new technology industries provides additional opportunities for industry to locate in the regions-building on the success of industries such as the micro-electronics industry.  DEVELOPING OUR TOURIST POTENTIAL.  Tourism will also be a major growth sector in the 1980's as overseas tourists become increasingly aware of our many scenic and recreational facilities.  New Zealand experienced a 20% increase in tourists from North America, Japan and Europe in 1980. New hotels are being built and more are planned.  Essentially a private enterprise industry, tourism already employs 54,000 persons full time and 30,000 part time. As the fastest growing sector of international commerce, tourism is expected to provide increased investment opportunities and 20,000 to 25,000 additional jobs over the next five years, again well spread throughout New Zealand.  NEW ENERGY FROM OUR  NATURAL RESOURCES.  Damaging though the oil shocks of the 1970's were for the New Zealand economy, they provided us with the opportunity to take advantage of the increased value of our own energy resources.  Following a careful assessment of the size of our natural gas, coal, geothermal and hydro-electricity potential, development opportunities have been promoted. These have resulted in proposals for projects in most regions of New Zealand. These projects are new, and exciting.  Some are controversial. But they are essential if we are to maintain our way of life.  Projects, such as using natural gas from Taranaki, to make sure that no matter what happens to oil supplies in the rest of the world, we will still be able to drive our cars and operate our industries.  Projects that will ensure that New Zealand is 50% self sufficient in transport fuels in 1987.  Projects that will turn our energy resources into export earners such as methanol, aluminium, and steel.  GROWTH THROUGH OUR TRADITIONAL INDUSTRIES.    Our land has always provided New Zealand's wealth. Growth in our land   based industries – agriculture, horticulture and forestry - has been   outstanding over the past six years. This momentum will be maintained.   Leadership in each sector is strong with industries setting ambitious   growth targets for the 1980's.  Positive farming policies are being pursued. These are designed to build farmer confidence, to stimulate increased production, to bring new areas of farm land into production, and to provide farm the settlement opportunities for young farmers.  There is still considerable potential for increased agricultural production in virtually all of New Zealand's regions. Irrigation schemes in Canterbury and Otago alone could expand stock carrying capacity by one million animals.  The Dairy Industry has embarked on a $700 million investment and expansion programme for the decade.  HORTICULTURE BOOSTING EMPLOYMENT.  Complementing our traditional pastoral farming are arable farming and horticulture. Together they provided export earnings of over $190 million in 1980 and have the potential to reach a $700 million by 1990.  Horticulture is a labour intensive rapid growth industry, which has been actively supported and promoted by the National Government. Thousands of new jobs have been created from horticultural development throughout the regions over the last five years. The most spectacular growth has occurred in the Bay of Plenty, Northland, Poverty Bay, Hawke's Bay, Horowhenua, Marlborough and Nelson. The present workforce of 20,000 is expected to reach 55,000 over the decade.  FORESTRY’S GROWING REGIONAL IMPACT.  Forestry will have a growing economic impact as trees already planted reach  maturity.  Developments based on the forestry resource will provide increasing job opportunities in the logging and transport industries, and in milling and processing, as well as for the many businesses and industries that service the forestry sector.  Forestry development will provide increasing economic activity from  Northland through the Bay of Plenty, the Central North Island, the East Coast and Hawke's Bay to Nelson, Marlborough and South Otago. forestry will increase rapidly in the years ahead.  Overseas exchange earnings from forestry will increase rapidly in the years ahead.  FISHING BENEFITS OUR PROVINCIAL PORT CITIES.  The fishing industry has responded in a positive fashion to the opportunity provided through the establishment by National of the 200 mile fishing zone.  Fish are now being caught at much greater distances from New Zealand and at depths previously not fished.  Export earnings have climbed rapidly and on-shore processing facilities have been established.  An extra 2,200 jobs have been created in the industry over the last four years and a further 5,000 will be created as the New Zealand involvement increases over the decade. This  expansion will provide economic growth in several of our provincial port cities.  PLANNING FOR  NEW OPPORTUNITIES.  The Regional Development Councils and regional government have an important role to play, through planning and development policies, in implementing National's growth strategy.  National's growth strategy means growth in the regions.  It means becoming aware of opportunities and taking advantage of them.  It is a strategy to benefit the people of New Zealand at all levels; a strategy that will provide them with opportunities to pursue their own goals and develop their own lifestyles.  ENCOURAGING GROWTH THROUGH MODERN SKILLS  AND TECHNOLOGY.    F    I  Innovation is vital for our growing nation.  "We must have growth to give us jobs. This can only happen through the efficient use of our resources. We must build on our proven ability to be innovative and put our knowledge and skills to good effect." Hon. Dr. Ian Shearer, Minister of Science and Technology.  OPPORTUNITIES IN NEW IDEAS.  National recognises the vital importance of innovation. New Zealand has benefitted from the way in which imaginative individuals have turned good ideas into thriving enterprises.  National will continue to contribute to the nation's research effort and to encourage the development of entrepreneurial skills. Our ability to compete successfully on world markets depends upon the continuing development of new technology to allow us to produce, process and  distribute our goods more efficiently.  SCIENCE AND TECHNOLOGY  AND NATIONAL'S GROWTH STRATEGY.  Science and technology have played an important role in preparing New Zealand to undertake the wide range of growth strategy projects in energy, manufacturing, forestry, horticulture and agriculture envisaged for the 1980s.  In partnership with the private sector and other Government Departments, the Department of Scientific and Industrial Research has provided the essential research and scientific know-how needed to get  these projects underway.  GROWTH IN JOBS.    There are now more than 17,000 people employed in computer and  electronic industries - in jobs that did not exist a decade or so ago. The electronics industry alone is expected to grow into a $300 million industry by 1985, increasing export earnings sixfold to $122 million and providing a further 3,000 jobs in the process.  The new technology industries will be a very important growth sector in the 1980s.  FURTHER SCOPE FOR DEVELOPMENT.  There is considerable scope for growth in micro electronics, communications and information, plant and animal breeding, new materials, microbiological developments, robotics, oceanography and energy technology.  These competitive high growth industries will be positively encouraged. New Zealand has the ability to provide specialist products using our highly skilled and well educated workforce.  NEW ZEALAND LEADS THE WORLD.  Many small companies, using technical ingenuity and innovation, are turning ideas into export income and jobs for local people:  • Flexible eartags for animals earn over $8 million a year in export sales, and provide jobs for over 300 people.  • Electric fence energisers are being used to control everything from earthworms in European bowling greens to elephants in Malaysia and Kenya.  • The world’s first electronic petrol pump, and the world's most advanced magnetic striped-card operated security doors are recent developments.  • Sophisticated medical and technical equipment like the portable haemoglobin meter, and the hand held radiometer are world firsts" on international markets.  • Contact lenses are being sold in six overseas countries, including the home of precision optical instruments -West Germany.  •A plant has been developed that will turn dairy wastes (like whey) and crops into a multi-million dollar industrial ethanol industry.  • Around one third of all silicon chip manufacturers in "Silicon Valley" in California, are using equipment which includes components produced in New Zealand - another example of "Kiwi ingenuity."  TECHNICAL KNOW-HOW FOR HORTICULTURE & FISHING.  Our scientists have bred some of the finest crops in the world. The  kiwifruit story is well known but a whole new range of grains, seeds, root crops, fruit, flowers and vegetables is being developed. Significant breakthroughs have been made with new products like fruit nectars, fruit leathers and fruit wines. These processes will be useful in the expansion of our horticultural exports, which are expected to yield over $700 million by 1990.  Orange Roughy, a recently discovered deep sea fish, is proving valuable, both for its export fillets and its oil. The fish contains wax esters from which a high-grade oil can be extracted. The product is useful for lubricants, pharmaceuticals and perfumes. Because it provides a good  alternative to sperm whale oil, it could assist the conservation of whales.  A RESPONSIBLE APPROACH TO THE ANTARCTIC.  New Zealand has had a long and productive history of scientific exploration in the Antarctic. The economic need for alternative sources of food and fuel has put political pressures on the Antarctic Continent.  National believes that no mineral regime should be brought into Ii'  operation until the environmental risks have been fully ascertained and safeguards developed.  National will foster measures which will maintain for all time the intrinsic values of the Antarctic environment for mankind and the global ecosystem.  POSITIVE ENCOURAGEMENT  AND ASSISTANCE.  National will continue to seek ways to postively encourage developments based on research and innovative technology.  Venture capital facilities are essential, particularly for small scale enterprises. National recognised this by setting up the Venture Capital Fund and the Applied Technology Programme. We will continue to investigate other ways to ensure adequate venture capital can be made available from private and public sources.  We want to ensure that the establishment of new innovative industries is not frustrated by bureaucratic procedures, licensing requirements or other controls. We will continue to free up the economy to encourage growth through the initiative of individual New Zealanders.  Government procurement policies will be designed to ensure that soundly based products which are internationally competitive receive local support.    PROMOTING RESEARCH AND INNOVATION.  National is actively encouraging Government Departments to make increased use of scientific research contracts. Private companies are also encouraged to make direct donations towards approved research institutions as such payments are tax deductible.  Our future as a small nation is dependent on our harnessing the wealth of scientific and technical innovation available in this country. The Department of Scientific and Industrial Research, research associations, and enterprising and innovative companies are taking new ideas and turning them into extra production, more jobs and new export opportunities.  ENCOURAGING GROWTH THROUGH MODERN SKILLS AND TECHNOLOGY.    We all benefit from a society that cares.    "We are all – when young, or old, or sick –dependent upon others. New   Zealanders have learned to translate the response to this human need   into a social fabric which for two generations has been the envy of   the world." Hon. George Gair, Minister of Social Welfare.  NEW ZEALAND.. A WORLD LEADER IN SOCIAL LEGISLATION.  The health, happiness and prosperity of our nation is dependent on the social well-being of our people.  The dependent, the disadvantaged and the incapacitated are supported by a system of income maintenance which ensures their place in the broad mainstream of society.  Because of National Superannuation, we are among the few countries, anywhere, that does not carry upon its conscience the burden of a class of aged poor.  SOCIAL WELFARE AND NATIONAL'S GROWTH STRATEGY.  National believes:  • We are in a caring society, in which individuals, voluntary and community based organisations and the agencies of central government, all play a complementary part.  • The concept of the family is basic to the needs of our society, and all social welfare policies should provide encouragement and support.  • New Zealand's welfare programme must be adaptable and should permit innovation and participation by the community.  • Society and its social policies are subject to continual change. Wherever possible, improvements to our welfare services to meet these changes should be achieved by a reallocation of resources rather than by increasing the burden on the taxpayer.  • Our social welfare system should encourage and assist beneficiaries as far as they are able, to become partially or even completely self-supporting.  • That children are our Nation's greatest resource. National recognises the valuable contribution child care makes to our society and will continue to support this work. The need for further community and government assistance in the maintenance of standards and practice is recognised.  TOWARDS PARTICIPATION  AND EQUALITY.  National fully endorses the resolution of the United Nations, declaring 1981 the International Year of Disabled Persons. About one person in 10 is affected by some sort of disability. National's policies are aimed to promote the rehabilitation and integration of disabled persons, and to encourage their greater participation in all aspects of community life.  The Disabled Persons Community Welfare Act (1975) introduced new forms of assistance for disabled persons, e.g. paid alternative care; vehicle loans, and home loans for modifications. In addition financial assistance is given to voluntary and private organisations providing facilities for disabled persons.  Further provisions for disabled persons include: a handicapped child's allowance, a disability allowance and special income exception provisions. These provisions are subject to regular review.  A review and evaluation of the adequacy of rehabilitation services and facilities bas bee n commissioned. The Review Committee will suggest principles and guidelines for future direction and development.  A PROMISE IN PRACTICE.  Our policies recognise the importance of ensuring that expenditure on social services does not expand in a way which is disproportionate to the rest of the economy. Such expansion could erode the economic base on which it depends.  National is working to contain further expansion (in real terms) of the social welfare vote.  Social Welfare expenditure this year will cost about $3,000 million - an estimated 22% of total government expenditure, or 9.9% of Gross Domestic Product. Income maintenance accounts for 96% of the total vote; social services just over 2% and administration just under 2%.  AN ON-GOING COMMITMENT.  National Superannuation rates are adjusted every six months by a formula linking them with movements in the average ordinary-time weekly wage.  Income tested benefits are also adjusted regularly every six months according to movements in the Consumer Price index.  As promised in the 1978 Policy, as soon as economic circumstances permit, National will review the portability of National superannuation for eligible New Zealand residents living overseas.  The 13-week limit to payment of National superannuation and other benefits during overseas trips will also be reviewed as the economic situation  improves.  ENCOURAGING GROWTH  ALL CAN SHARE.    I  OUR DUAL RESPONSIBILITY.  National believes it can best protect the position of people in greatest need by ensuring the integrity of the system.  In formulating its policies on social service spending, National is mindful of its dual responsibility to taxpayer and beneficiary. Those who are contributing must be assured that their contributions are being used to best effect, those receiving from the system must be given fair treatment.  National's policies are geared to better use of limited funds, using various measures like staff training, management audits, office inspection and financial control systems. Vital to this efficiency is an improved information base and a management information system.  EVALUATION OF EFFECTIVENESS  National has introduced a quality control programme, which is currently examining the benefits of 6,000 beneficiaries. The object is to ensure that beneficiaries are receiving their correct entitlement; that proper procedures and criteria are being adhered to; that the opportunity for fraud is minimised; and that any weaknesses in administrative procedures are identified and corrected.  The Social Programme Valuation Unit is being set up to scrutinise the effectiveness of existing policies in order that funds may be directed into areas of greatest social need.  Emphasis in the social services area is again on making best use of existing funds, supplementing the vital underpinning provided by the income maintenance programme.  HELP FOR THE HELPERS  Because of the statutory functions required of them by the Courts, Departmental social workers play a complementary rather than a competitive role with their voluntary organisation counterparts. The emphasis is to avoid duplication of effort.  National's policies will continue to stress co-ordination and efficiency in social work.  Assistance through support services must be flexible to meet changing needs within the community. A number of pilot schemes emphasising preventive social work have Government support.  Examples: child abuse prevention projects in Hamilton and Dunedin; the establishment of Northern and Otago-Southland child-care co-ordinating committees and a family support service established in South Auckland with the New Zealand Red Cross Society.  The Government will continue to monitor the levels of existing forms of assistance to ensure that they offer beneficiaries the opportunity of participating as fully as possible in the life of the community.  We’re blessed with one of the world’s fastest growing industries.  "New Zealand's many attractions make the tourist industry a natural for further vigorous development. We have much to offer to overseas visitors and they in turn bring many benefits to us.” Hon. Derek Quigley, Minister of Tourism.  BEAUTIFUL NEW ZEALAND.  New Zealand is a land of splendid mountains, forests, rivers, lakes and beaches. National Parks and Scenic Reserves cover almost 10 percent of our land area. Recreational opportunities abound for fishing, tramping, climbing, skiing and many other pursuits.  Our country will be made more magnificent with National's 'Beautiful New Zealand' campaign. The planting of a variety of trees, bushes and flowers will ensure New Zealand's beauty extends beyond already acclaimed scenic spots. New Zealanders and tourists alike will benefit from this campaign.  TOURISM AND NATIONAL'S GROWTH STRATEGY.  Through tourism we can stimulate economic growth without threatening our environment. Through well co-ordinated regional promotion programmes we can ensure greater economic activity in some of our more isolated regions.  Tourism is a labour intensive industry with a high employment potential. As the world's fastest growth industry it is an important part of National's growth strategy.  A BILLION DOLLAR INDUSTRY... AND GROWING.  Tourism is now a billion dollar a year industry. Domestic tourism contributes some $600 million to the New Zealand economy while spending by overseas tourists adds a further $400 million. Overseas exchange earnings have more than doubled since 1975.  Essentially a private enterprise industry, tourism currently employs 54,000 persons full-time and 30,000 part-time. As the fastest growing sector of international commerce, tourism is expected to provide increased investment opportunities and 20,000 to 25,000 additional jobs throughout New Zealand over the next five years.  Last year well over 450,000 tourists visited New Zealand. It is expected that there will be in excess of half a million visitors this year. National's objective is to double this number to reach 1 million overseas visitors by 1990.  This objective can only be met through active private sector promotion of New Zealand overseas, supported by the Government through the Tourist and Publicity Department.  PROMOTING NEW ZEALAND'S  ATTRACTIONS.  National has positively encouraged the New Zealand travel industry to vigorously promote New Zealand's tourist attractions.  As from 1 April 1980 the industry has been eligible for the Export Performance Tax Incentive and Export Promotion Grant. These have led to a positive and co-ordinated growth in private sector marketing of New Zealand overseas. These incentives will remain in place at least until 1985.  Major promotional visits have been made to North America and Japan and a new advertising campaign has been launched in Australia. New Zealand presented a major tourist promotion in Berlin at Europe's travel fair. Prominent travel writers have been brought to New Zealand and have given our country favourable publicity around the world.  Direct marketing activities through the Tourist and Publicity Department have been expanded and some $4.5 million has been made available for tourist promotion this year. A new travel post has been opened in Perth and the offices in West Germany and Japan strengthened.  TOURISTS FROM AROUND THE GLOBE.  As a result of these marketing activities there has been a greatly increased flow of tourists from North America, Japan and Western Europe - up 20% in 1980.  A continuing growth in the number of Australian tourists visiting New Zealand is anticipated. However a wider diversity of tourists is needed to reduce the travel industry's dependence on the Australian visitor.  FLYING THE TOURISTS IN.  Tourist growth will not occur unless air services are available for tourists who wish to come to New Zealand. Air New Zealand has a key role to play in promoting tourist volumes, and can only benefit from an increasing tourist flow. The new 747 fleet will provide the extra capacity for increased tourist volumes.  Other airlines are also contributing to growth and diversification. In recent months National has approved landing rights for Japan Airlines flying from Tokyo, Ansett and TAA flying from Hobart, and Aerolineas Argentinas flying from Buenos Aires.  PROVIDING THE BEDS.  To encourage hotel development in Auckland, a grant of 9½% of approved construction costs is available to major hotel developers, in lieu of the first year depreciation allowance. This Incentive has been a factor in the construction of the 450 room Sheraton Hotel, New Zealand's largest, which is being built in central Auckland. Costing $40 million, the complex is expected to be completed in 1983.  The development of this hotel, along with the almost completed Auckland Airport Travelodge, will help to ensure that adequate accommodation continues to be available in Auckland to cope with the tourist flow.  KEEPING PACE WITH DEMAND.  The decision to extend the runway at Christchurch International Airport is part of an ongoing policy to ensure airport development keeps pace with tourist demands.  The South Island in particular will benefit from the runway extension which ensures Christchurch's role as the gateway city of the South.  ACCOMMODATING ALL NEEDS.  New Zealand has a full range of accommodation styles offered by the private sector and the Tourist Hotel Corporation. These range from international hotels to tourist cabins and youth hostels. National's aim is to ensure that the development of accommodation in New Zealand keeps pace with tourist growth.  In the last four years over 1,000 new first class hotel rooms and motel units were opened and currently nearly 2,000 are under construction.  POSITIVE INCENTIVES.  Other policy measures introduced by National which are of positive benefit to the tourist industry include:  • the removal of price control from the accommodation industry.  • ensuring that the accommodation industry in the South Island is eligible for the 25% electricity concession.  • the introduction of Saturday trading which is of particular benefit to tourist areas.  • the abolition of the depreciation limit on rental cars, in recognition of the growing number of travellers who wish to drive themselves around New Zealand.  •the amendments to the National Parks Act that provide for tourist amenity areas in national parks.  NEW FIELDS OF OPPORTUNITY.  There has also been positive involvement, through the Development Finance Corporation, in the development of New Zealand ski fields. Considerable overseas interest is now being shown in our ski facilities with top class Northern Hemisphere skiing champions coming to New Zealand for off-season training.  The New Zealand ski industry, already earning us more than $10 million a year in overseas tourist earnings, has considerable potential for increased growth in off-season tourism.  SEEING OUR OWN COUNTRY FIRST.  National's tourism policy is not just overseas oriented. It is also strongly directed at promoting increased travel by New Zealanders throughout their own country. A highly successful advertising and promotional programme has been undertaken within New Zealand, spearheaded by the television commercial "Don't leave town 'till you've seen the country."  National's 'Beautiful New Zealand' campaign is part of our policy of vigorously promoting tourism to create economic growth, additional employment opportunities, and growth in the regions.  ENCOURAGING GROWTH BY ENCOURAGING VISITORS  Transport keeps our economy on the move.  "New Zealand has a small population unevenly spread across the length and breadth of our rugged country. Our vital export markets and sources of imports are widely spread across the world. Transport will always be a particularly important and challenging aspect of the New Zealand economy." Hon. Colin McLachlan, Minister of Transport.  TRANSPORT AND NATIONAL'S GROWTH STRATEGY.  National's policy aims for a transport system that contributes positively to the achievement of our national, social and economic objectives. It is an integral part of National's growth strategy.  Transport and growth are mutually dependent and each will work to the advantage of the other. The direction of National's transport policy is toward a natural development of the transport services in New Zealand based on efficiency and competition.  National sees the role of the Government in transport as being to encourage an efficient structure that ensures our transport system operates at the most efficient cost to the user and therefore the nation. At the same time it must ensure an economic use of energy resources, and an equitable spread of services to the public.  Another role is maintenance of the highest possible levels of safety for people, security for goods and protection for the environment.  ON THE RIGHT RAILS.  Under National, New Zealand Railways have progressively upgraded rolling stock, bridging, tunnelling and tracks. New management accounting systems and a computerised traffic monitoring system have provided a better base for efficient commercial management.  The electrification of the North Island's main trunk railway line from Palmerston North to Hamilton is due to be completed by 1987. This section of the main trunk rail system carries 40% of New Zealand Railways' total tonnage and accounts for 20% of Railways' total fuel bill. The project is expected to cost $135 million, most of which will be spent in New Zealand with both New Zealand Railways and the private sector involved in the construction and associated contracts.  National has accepted that Railways must increasingly compete with other modes of transport on the basis of its real economic benefits and realistic tariff structures, rather than by protection and regulation  As part of an overall policy of encouraging national competition between road and rail, National has extended the old 40 mile (64.3 km) limit to 150 km.  National's decision to establish a new Railways Corporation reflects the need to adapt to changing circumstances and changing times. The Corporation will ensure Railways and its employees a secure future based on an achievable target of profitability and the ability to compete strongly with road transport.  THE ROAD TO SUCCESS.  Road transport has always been an aggressive, competitive and substantially private sector industry.  In the continuing move toward less regulation and more competition National introduced the Road User Charges System. This system places road transport on a more equal footing with rail by ensuring that road transport operators pay a fair contribution to the cosy of roading.  As Railways becomes more profitable and competitive, National will progressively move away from restriction and regulation of road transport toward a more free market environment. Wherever some regulation is still required, National will constantly examine ways to make sure the regulations are easy to understand and administer.  GETTING AROUND TOWN.  The fuel shocks of the 1970s have placed a new importance on urban transport. National's Urban Transport Act is designed to ensure the most efficient, cost-effective transport system at a local level.  The Act has established a framework for the planning, co-ordination and organisation of urban transport as a total system at both a regional and national level.  National continues to place great emphasis on road safety. National has undertaken comprehensive education programmes and tightened traffic legislation, particularly in respect of alcohol and drug related offences.  SERVICE N THE SKYWAYS.  Air New Zealand links New Zealand to more international destinations more frequently than any other airline. Over a time of crisis for international airlines around the world the National Government has consistently stood by Air New Zealand.  National has confidence in our airline and in its ability to succeed. This confidence is reflected in Air New Zealand's purchase this year of five Boeing 747 aircraft with new-generation, fuel-efficient, Rolls Royce engines, and in the continuing negotiation of new landing rights.  National has tackled the difficult and controversial task of merging the airlines, with proven savings of $13 million per annum. There has been an encouraging growth of small private enterprise commuter air services. The Domestic Air Services Policy Review currently underway will ensure the continued growth of commuter and provincial services.  A revised licensing framework will encourage more frequent and efficient provincial services and reduce the costs of main trunk services.  EFFICIENCY AFLOAT.  National has continuously encouraged the rational development of port resources to ensure increasing efficiency of both provincial and main ports. National's growth strategy is providing a further impetus to the development of port facilities around New Zealand.  National continues to support the New Zealand Shipping Corporation which plays an important role in New Zealand's trading position with the world. The Corporation is at present considering major investments in additional ships to serve New Zealand's coast and overseas trade.  Interest in the re-establishment of coastal shipping services has increased with the introduction of rational pricing policies for Railways.  The Forum Line is of significant regional importance to New Zealand. Its current problems are being aggressively and successfully tackled.  The Cook Strait ferry service is a vital link between the North and South Islands. The service returns a trading profit to Railways even though charges are well below comparable services such as the English Channel service.  To ensure the continuing efficiency of the service, National has called for tenders for the replacement of the "Aramoana" A new vessel will have twice the carrying capacity of the "Aramoana" and will result in improved fuel and wage costs per tonne carried.  DEVELOPMENT IN NEW DIRECTIONS.  The 1970s have been a critical time for transport in New Zealand in coping with the effects of both the huge fuel price increases and rapid inflation in the cost of imported capital equipment.  National has undertaken difficult and fundamental steps to remove some of the economic distortions that have previously prevented rational development in transport. The industry is now moving into an era of less regulation and more free enterprise competition based on the underlying economic advantages of each mode.  The aim has been to provide more flexibility in the face of changing circumstances. The National Government will continue to encourage the progressive development of those trends.  ENCOURAGING  EFFICIENCY THROUGH  COMPETITION.