“PRESSURE GROUP”

Press, Volume CI, Issue 29722, 16 January 1962, Page 10

“PRESSURE GROUP”

L.R.C. Chairman Critical

"The Government’s decision to abandon the Nelson cotton mill project will be deplored by all who value New Zealand’s high standing in the business world overseas and by those in possession of the full facts on the proposed undertaking,” said Mr R. Jones, chairman of the Christchurch Labour Representation Committee, yesterday.

It was obvious that there had been pressure by vested interests, Mr Jones said, and the Government was showing scant concern for the country’s good name or for its own policy of developing industry The mill, in addition to safeguarding the consumers' interests, would have saved £750,000 of overseas exchange. Mr Jones said, and by 1964 and thereafter the saving would be £2m a year. “There is absolutely no, foundation for claims that the agreement would have created a monopoly.” he continued. In the first two years of operation of the mill the proportion of the market reserved for the company would have been 7% per cent of New Zealand's requirements. By 1969 there would have been a further development, but even then the proportion would only have been 20 per cent “This is clearly a case of domination by the pressure group,” he said. “The group, not content with 80 per cent, of the cake, and showing complete disregard for New Zealand’s good name or the interest of its economy, successfully grabbed the lot.”