COTTON MILL Nelson Council Seeks Statement

Press, Volume C, Issue 29674, 18 November 1961, Page 12

COTTON MILL Nelson Council Seeks Statement

(New Zealand Press Association)

NELSON, November 17. An unequivocal statement by the Government to the effect that the cotton mill project is to proceed in accordance with the agreement with the company is to be sought by the Nelson City Council. The council last night approved a statement on the cotton mill controversy, which will be sent to the Prime Minister (Mr Holyoake). The statement says:— “The Nelson City Council is understandably disturbed by the controversy which is raging around the Nelson cotton mill and wishes to place on record its conviction that the establishment of the mill in New Zealand is to the country’s advantage in all respects. “The fact that the mill is being built in this city has caused the council to take particular interest in the project, and to give it special study, and the council, therefore, feels it is in a position to express an informed opinion on the matter. "The council was pleased to hear the Minister of Industries and Commerce state some time ago that the present Government had studied the agreement with the company entered into by the Labour Government, and had come to the conclusion it was legally binding and should be adhered to.

“It appears to this council that considerable pressure is being brought to bear on the Government by various interested parties. It is interesting to know that the erec-

tion of the mil] is proceeding in accordance with the contract while the argument continues. “This council believes New Zealand’s reputation for honouring agreements with overseas companies is being jeopardised by the present activities of groups and urges the Government to make an unequivocal statement to the effect that the project is to proceed in accordance with the binding agreement with the company.”