ALUMINIUM INDUSTRY

Press, Volume XCIX, Issue 29130, 16 February 1960, Page 11

ALUMINIUM INDUSTRY

Mr Hanan Replies To Dr. Salmon

(Neu Zealand Pres* Association/ INVERCARGILL, Feb. 15. A statement by Dr. J. T. Salmon, of Victoria University of Wellington, that he could not see how an aluminium smelter m New Zealand could earn overseas exchange for the country was replied to by Mr J. R. Hanan, M.P., of -Invercargill, today. Dr. Salmon made his remarks at a protest meeting in Christchurch last week at the Government’s action in contracting for the exploitation of Lake Manapouri for hydro-electric purposes. Referring to a statement by Mr Hanan about the proposed aluminium industry’s exchange earnings. Dr. Salmon added: “I do not profess to be an economist, but as New Zealand will never own the aluminium that is smelted here, I cannot see how the sale of this metal can earn any overseas exchange for this country.” Mr Hanan, replying to this today, said that the aluminium company would employ a big labour force involving the payment of a big sum of money in New Zealand currency. Other local expenditure in New Zealand currency would involve harbour dues, general expenses, rates and not by any means least, the contribution by way of income tax, which at present rates would be 10s in the £l, making all New Zealanders to that extent partners in a great industrial enterprise. Mr Hanan added that the many millions of New Zealand currency to make all these payments could come from only one source —the sale of the aluminium on overseas markets. Overseas exchange would be used, therefore to the extent required to buy New Zealand currency from the New Zealand banking system, in just the same way as the sale of primary produce earned overseas exchange for the benefit of the Dominion as a whole.