N.Z. COTTON MILL

Press, Volume C, Issue 29599, 23 August 1961, Page 8

N.Z. COTTON MILL

Cancellation Of Deal Urged (N.Z. Press Association) WELLINGTON. August 22. "One of the most damnable agreements that any government of New Zealand has ever entered into” was the description given the arrangements for a cotton mill in New Zealand by Mr W. Malcolm today. He was speaking at a meeting of the electoral committee of the Meat Board. He later suggested the Government should call the whole thing off, standing the expenses already incurred. Mr Malcolm said New Zealand purported to be a trading nation but this term meant that trade was reciprocal. At a function in Japan he had been embarrassed at being asked why, if New Zealand wanted to trade, she was building a cotton mill that would be guaranteed 80 per cent, of the market in the finished product. The Labour Government had done a disservice to the country and should be "pilloried and disgraced before the general public.” It had contracted to help investment in a project involving £2 million of overseas funds in order to damage the country’s own industry. “Can we get out of this deal or are we to honour one of the most disgraceful agreements ever entered into?" he asked.

Mr F. M. B. Knight said the Prime Minister (Mr Holyoake) had said the arrangements by the Labour Government were so well in train that it would not be possible to stop the project from proceeding. Mr Malcolm said that even if it was necessary to pay out funds to “buy them oil” at this stage it should be done.