Cotton Mill

Press, Volume CI, Issue 29724, 18 January 1962, Page 3

Cotton Mill

Sir,—The important economic question, I suggest, was whether the employment and income-creating effects of cotton mill production were more favourable to New Zealand’s standard of living and its capacity to import than the effects arising from alternative investment in farming or farm-related products. If the Government possesses material evidence to support its decision, it should publish it. Might I add that the latest available figures (for 1959 only' show that about 70 per cent, of the projected “stage I” cotton 'goods were derived not from Asian countries, but from Britain and Europe.—Yours, , etc..

G. M. MILLER. January 16, 1962.

Sir, —Hie gentlemen from Nelson are really making political hay over this costly waffling by the present Government. Such parochialism is distressing to see in a time when the country has a balance of payments problem and is desperate for new markets. Instead of fruitless bickering, we should put it down to experience, remember that both parties are to blame for the mess, and ensure that this sort of thing never happens again. Ignore Labours loud wails. They are on a good thing and wiU beat it to death for the next two years. We have had enough of secret agreements and politicians who make them. It is time to raise our standards, and demand a better standard of management, from those whom we pay to run our affairs, not our lives. —Yours, etc., A. A. WILLIAMS. January 16, 1962.

Sir, —In the radio news Mr Marshall was reported as saying in Wellington that there was no objection to a cotton mill’s being established in New Zealand and it would get tariff protection in its initial stages of production, so what is his idea of abolishing the Nelson mill? Is he over-ridden by his colleagues and the big unporters. If so why does he not come out in the open and say so and resign his position. Protection by a high tariff under National could mean the price cotton goods would be greatly in advance of Japanese and even British cotton prices. Yet the Nelson mill was going to produce goods at world parity prices and other goods cheaper than British cottons could be landed here.—Yours, etc.,

T. H. BITMEAD.

January 16. i 962. [Our correspondent misunderstands the position. The Government did not “abolish” the cotton mill; the company presumably abandoned the project because it did not consider the degree of protection offered by the Government sufficient.— Ed., “The Press.”]

Sir,—The worst feature of the cotton mill argument is it appears Governments can be influenced by outside pressure groups. By normal British standards a committee or jury eould not be swayed by a third party. We have elected a group of men to do a job in Parliament. The pressure group should pay the compensation, not the tax payers as the whole Agreement is to protect their %iterests. Parliament should

have been called and the discussion published. The theory of the pressure group should be carried on a little further to where we could have unrestricted importation of Eastern garments. Asians would buy more mutton and the consumer would be saved millions each year on the goods. What is the profit on cotton from the time it is spun until it reaches the consumer? Import licensing is a protection to all industry. Licences should be tabled each year and redistributed to all genuine applicants.— Yours, etc., MATAGOURI SPIKE. January 17, 1962.

Sir, The Government’s decision, whilst unwarrantedly protracted, is the logical outcome of a thorough investigation which was the initial responsibility of the previous Government; and it reveals the necessity of a regulation that all agreements binding the Government must be scrutinised by the Treasury and Crown Law Office before being signed. Also, a curb is necessary on the apparent unlimited authority enjoyed by officials of the Industries and Commerce Department. Hie existing set-up js bureaucracy in a dangerous form, allowing administration by theoretical assumptions, devoid of practical experience.—Yours, etc., RIP VAN WINKLE. January 17, 1962.