Cotton Mill Federation Disputes Company’s Claims

Press, Volume C, Issue 29673, 17 November 1961, Page 16

Cotton Mill Federation Disputes Company’s Claims

(New Zealand Press Association)

WELLINGTON, Nov. 16. The Commonwealth Fabric Corporation had secured an "extraordinarily favourable” agreement and it was regrettable it had chosen to accuse opponents of the proposed Nelson cotton mill of using unfair arguments, said the Wholesale Softgoods Federation in a supplied statement today. In reply to the remarks of a corporation spokesman, published today, the federation said, so far, it had made no criticism of the corporation. The corporation said ft would endeavour to keep prices comparable, "This is, at the very best, only a pious hope. With the best will in the world, the corporation could not possibly compete, on level terms, with the Eastern sources from which New Zealand draws the great majority of its textiles in the categories which the mill proposes to make,” said the federation. "The corporation’s claim that 70 per cent, of the denim used in New Zealand comes from the United Kingdom is completely at variance with the official figures, which show that 39 per cent, of denims, drills and ducks originated from the United Kingdom in 1959 and 38 per cent, in 1960. "Second, with respect to diaper cloth, the Consumer Service report of spring, 1960, demonstrates beyond all argument the superiority of the Indian quality. The first nine diapers listed in this report originated from India.

“The federation has made two previous formal requests for details of the diaper construction the mill proposes to make. This information has been declined, although a director of the corporation did inform the federation there would be nothing much between the Indian diaper and the mill’s proposed diaper in respect of quality. “Accordingly, the federation again today addressed a telegram to the mill's New Zealand director requesting details of its proposed diaper construction. The reply again evades the question by claiming that the mill will adopt the practice of selling from samples.” Since the Consumer Service report had demonstrated that the best United Kingdom quality tested was much inferior to the Indian, and substantially more expensive, the federation felt entitled to draw its own conclusions.