Mr Nash Blames Importers And Mr O’Shea

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

Mr Nash Blames Importers And Mr O’Shea

(N.Z. Press Association) WELLINGTON, January 15. The Leader of the Opposition (Mr Nash) tonight blamed pressure from importing interests and the Dominion secretary of Federated Farmers (Mr A. P. O’Shea) for the Government’s decision to abandon the cotton mill. “The Government has given way to pressure in cancelling the cotton mill agreement and it obviously does not deny that,” he said. “The facts, briefly, are that an agreement had been made with an English company of unquestioned integrity which manufactured high-class products,” said Mr Nash. "Once that agreement was signed, the action of the company was immediate. It acquired land, called for tenders for buildings, construction was promptly started and employees sought out in England to train those who would have been engaged in Nelson and elsewhere. In short, a great New Zealand manufacturing venture was launched. “It had been estimated that by 1970, 1000 employees would have been engaged at the mill and some 900 of them would have been New Zealanders or nationals of other countries who had already taken up permanent residence here. “All this pr nise for the future has been broken because of pressure brought by

importing interests and the Dominion secretary of Federated Farmers. "The objections to the agreement were based principally on the cost of the articles to be made in Nelson, but if this is to be the test of current and projected New Zealand manufacturing industries, then it is a very inconsistent one, for many local ventures. launched pnder different Governments, produced at prices well above those for the same goods made in countries with low living and wage standards. Full Employment

“Secondary industry in New Zealand is imperative to balance the economy and maintain the full employment to which the Labour Party is pledged, and in which the Government also has declared its belief. There is no other way.” Mr Nash said.

"The Government accepted the agreement in the first instance, and late in the recent session of Parliament, the Minister of Industries and Commerce (Mr Marshall) said in the House that it. was in order, though he did not affirm his acceptance of all the clauses, and that the Government was not going to pay the £1 mi’lion compensation that might be involved either in breaking the agreement or in negotiating its mutual termination.

"Since the company's delegation arrived in New Zealand six weeks ago there has been a continuous barrage of representations attacking the agreement. "Some of the statements have been correct and some otherwise. In fact, some of the original critical material has been as incorrect as anything could be and that is putting it mildly,” Mr Nash said. f

"The feelings of the delegation after weeks of this treatment can easily be understood, as also can the statement of its leader that he would not respond with enthusiasm to an invitation from a future Labour Government to re-open talks. “In abandoning an agreement lawfully made, the Government has agreed to pay all the expenses already incurred by the company or to which it was committed, to pay interest at 6 per cent, till a full settlement is made, and to compensate those employees which the company had engaged. Cost To Taxpayers “The price the Government, which means the country, will pay for the company for foregoing its right to establish a £5 million industry is. itself, proof of the unquestioned validity of the agreement. "The cost to New Zealand will be great, but the damage to its reputation will be immeasurably greater. “This mill would have provided employment for a large number of New Zealand residents, skilled and unskilled. Incidental to this, everyone concerned with the balance of employment and the distribution of population and industry will know how worth-while it would have been to have more people living in the South Island and employment available for them. “The Government has bowed its head under pressure from interested groups and parties which were opposed to the extension of manufacturing in New Zealand. Similar action could jeopardise the South Island aluminium, iron and steel projects, the glass manufacturing plan and all the other propositions which have come

to light in the last two or three years,” Mr Nash said. Other comment today on the cotton mill decision was: Mr O. McGuire, president of the Nelson Chamber of Commerce:— *1 am both amazed and disgusted with the Government's decision. In brief terms the abandonment of this project means also the abandonment of Nelson, a severe check to the prestige of the United Kingdom and a resounding victory for the Blast. It may well be that the people of New Zealand will have cause to regret a shifting of sentiment.”

Mr K. Hager, vice-presi-dent of the Shirt and Pyjama Manufacturers’ Federation of New Zealand: “It is better for the country to take action now instead of having an uneconomic industry being established which undermines our export and import potential.”

Mr H. Rodgers, vice-presi-dent of the Nelson Progress League: “It seems almost incredible that the leaders of our country, having ratified the agreement made by the previous Government, should, at this stage, bow to the intrusion of vested interests in New Zealand.”

Mr S. L. Moses, president of the Associated Chambers of Commerce: “The consumers of New Zealand will benefit from the termination of the cotton mill agreement”

In a message from the Wellington reporter of “The Press” printed yesterday the Leader of the Opposition (Mr Nash) was quoted as saying of the cotton mill issue: “I cannot comment on who is to blame” The condensed reoort did not say that Mr Nash gave this reply when he was asked whether he regarded the present Government’s decision as a vote of noconfidence in senior staff of the Department of Industries and Commerce.