Parliament I.M.F. Membership Plan Attacked

Press, Volume C, Issue 29554, 1 July 1961, Page 12

Parliament I.M.F. Membership Plan Attacked

(N.Z Press Association) WELLINGTON, June 30. People outside New Zealand would make this country’s decisions if the Government went ahead and joined the International Monetary Fund, Mr S. A. Whitehead (Labour, Nelson) said in the House of Representatives today. Speaking in the Address-in-Reply debate, Mr Whitehead cited instances of I.M.F. control being exerted in Australia and India.

Mr A. E. Allen (National, Franklin) countered by claiming that New Zealand would have been in the I.M.F. when it was set up if the Leader of the Opposition. Mr Nash, had had the same control over the Labour Party in 1944 as he had had for the last three years.

Mr Allen said Mr Nash had been an architect of the I.M.F. agreement at the Bretton Woods conference. Since the election and the announcement of the Government's intention to join the International Monetary Fund, the Government had lost more votes at the Hurunui by-election than the 907 votes in seven marginal seats that would be required to put them out, said Mr Whitehead

If New Zealand joined the fund power would be taken from the hands of its legislators and people outside the country would make the decisions. He cited a deal in which Burma was to have sold India 150,000 tons of rice when Burma had a surplus and India needed rice. It had been stopped by the IMF. because India was committed to the fund, he said. AUSTRALIAN EXAMPLE “What is happening in Australia could happen in this country, because they are, in the 1.M.F., which want, the credit squeeze to continue until 1982,” said Mr Whitehead. “It means that the people who are elected are controlled from outside the country. There are 102.000 out of work in Australia and the papers are full of advertisements for repossessed cars.” Replying to a remark by Mr H J. Walker (National. St Albans) that New Zealand could import cotton goods more economically than she could make them, Mr Whitehead said that the people who would work in the planned Nelson cotton mill would be working in the most modern mil] in the world and would produce cotton goods more cheaply than they could be imported Replying to Mr Whitehead s remarks about the I M F.. Mr Allen said: 'Surely he knows that this agreement he is speaking of is the one of which the Leader of the Opposition was an architect at Brettor. Woods ’’

If Mr Nash had had the same control over the Labour Party in 1944 that he had had for the last three years. New Zealand would have become a member of the fund when it was set up. said Mr Allen. The I.M.F. and World Bank were specialised agencies of the United Nations, as were SE A TO. and A.N.Z.U.S., said Mr Allen. He wondered whether Labour members suggested that New Zealand should not belong to the United Nations. AIM OF FUND The United States had only 26 per cent, of the votes controlling the fund and tht Commonwealth had 25 par cent If New Zealand joined the Commonwealth's vote would be the same as that of the United States. The main aim of the find was'the promotion of international trade and there had been a higher level of employment throughout the world sine* the fund had come into being.

Mr Allen said that the electric power supply authorities were trying to get some continuity of policy. “I hope later to present (to th* House) an argument to get the control of electricity away from changing Governments.” he said. The nextfSpeaker. Mr J. J King (Labour. Waitemata 1

said the last three years had seen the most progress in New Zealand’s electricity supply. Mr Allen: What new projects? Mr King: Everything was booming when we came to power. Why this change when they (National) came to power? In New Zealand now. M r King said, the Government had created its own problems. “It has put up interest rates and introduced increased cost structure," he said. He accused the Minister of Finance of “milking dry” the local bodies with loan rates. HOUSING LOANS

"The greatest danger lies now with those people seeking housing loans,” said Mr King. The Prime Minister had said that the housing interest rate would not be increased but the Minister of Housing had said that the Government would have to consider the loan rate. Mr King said. Mr P B. Allen (National. Bay of Plenty), called on the Opposition to get rid of their depression days’ ideas. He also criticised the sending bf gold by the last Government to the Un’t"d States to back a loan. “The first time in New Zealand history when the word of the Government wa« not sufficient.” he sa’d Mr Allen referred to the installation of the third oaper machine at Kinlei’h for Forest Products and he said people of the Whakatane district were waiting with interest, the announcement of plans for Whakatane Board Mills, tor which a £2m expansion programme had been planned before its take-over by Forest Products He predicted that the second newsprint machine at Kawerau would bring the total production of the Tasman Paper and Pulp Company to 200.000 tons a year. Mr R M. Macfarlane (Labour, Christchurch Central) said that the Government held seven seats by slender majorities and three seats by small majorities. "The swinging body of electors in the country will be judging the Government." The vote had swung 2i per cent., he said, but the people who had decided the election were those who refrained from voting. PARTY ORGANISERS It had been said tha' the National Party depended on voluntary workers, but it had a large number of paid organisers working from one end of New Zealand to the other and receiving substantial salaries. He said that employers had approached workers during their working time to join the Na’ional Party and that was a form of intimidation. When the Government spoke about voluntary unionism they ought to look at that, said Mr Macfarlane.

His speech was interrupted by the adjournment of the House at 4 30 pm., until 230 p.m on Tuesday. If New Zealand and Australia could be included in the European Common Market. just as France was considering the inclusion of her African dependencies. Canada

and the United States might follow to form a large tree trade area, said Mr L- R. Adams-Schneider (Government. Hamilton) this morning when the Address-in-Reply debate was resumed. Mr Adams-Schneider said that France was discussing with the other five in the European Economic Community the inclusion of her African dependencies in the community. “Of course, we would have to have protection for. our manufacturing industries; but

all these tilings are in the melting pot at the moment. We should investigate a larger free trade area,” he said.

Mr W. A. Fraser (Labour. St. Kilda) voiced strong protest at the Cook Strait power cable scheme. He doubted that the final cost of the scheme would be £18.800.000 as announced.

“What about the cost of a cable ship? There has been a report that a freighter will have to be converted.” said Mr Fraser. A specialist crew and special gear would be needed for this vessel, and the cable would have to be replaced, possibly within 15 years.

“Many questions remain unanswered. We would like the Minister to tell the people how much in addition to the £18.800.000 the cable scheme will cost,” he said. The Minister of Works (Mr Goosman): Nothing.

Mr Fraser asked how the cable scheme could be economically better than the Wanganui river dam scheme "1 am far from satisfied.” he said, “that all the resources for the North Island have been investigated." CARBIDE INDUSTRY

Mr Fraser urged Government support for the development of a calcium carbide industry in New Zealand. He said this could mean big savings in overseas funds. “But someone in Wellington is trying to throw cold water on this project,” Mr Fraser said.

Mr D. J. Carter (National. Raglan) said that never before in the history of New Zealand had it been more essential to promote primary industry. Likewise, it was essential to keep the industry's costs to a minimum. He was “amazed" that Mr Nash claimed pride in the guaranteed price for the dairy industry. Dairymen, he said. had. for years, been under the “dictatorship” of Mr Nash. RESEARCH WORKERS Mr Carter thought that the salaries question was only part of the story behind the loss of research workers overseas. He suggested that if New Zealand could pay high salaries to scientists of international repute to work in New Zealand our scientists . would be more likely to remain and work in departments headed by such men Mr Carter also urged more hostels and more adequate boarding allowances so that ■ the children of settlers in remote rural areas should not be deprived of secondary schooling. Mr R. Macdonald (Labour. Ponsonby) said that the Minister of Customs (Mr Marshall) should be known as the “minister of gloom” as he was “going around the country talking about the threat of a depression and unemployment.” "* is spreading that feel--1 ingtemong the employers and giving the impression that we would have to tighten our belts,” he said.

Mr Macdonald asked what was the use of protection for an industry if the manufacturer could not import the raw materials for making the product in Net)’ Zealand. U.S. UNEMPLOYMENT

Mr G. A. Walsh (National. Tauranga) criticised reference to large unemployment in the United States made this week by the Leader of the Opposition (Mr Nash). It should be remembered, he said, that the United States was giving vast aid to other nations at great economic cost to itself. Of the possibility of Britain joining the European

Economic Community. Mr Walsh said that unfortunately j much of the Commonwealth i was in the same productive (fields as Britain “Canada and Australia are competing with Britain in the field of light goods.” he said, "New Zealand and South Africa are trying, too, and India and Ceylon also are promoting an internal development policy which must make them more indeA pendent”