Govt’s. Release Of Letters 'A Political Smokescreen’

Press, Volume CI, Issue 29748, 15 February 1962, Page 14

Govt’s. Release Of Letters 'A Political Smokescreen’

( N.Z. Press Association)

OAMARU, February 14.

“In a desperate desire to draw public attention away from its infamous action in terminating the Nelson cotton mill agreement, the National Government is now setting up a political smokescreen by seeking to create the impression that there was something wrong, or even sinister, in the arrangements made by the Labour Government for the establishment of new industries in New Zealand,” said the Minister of Finance in the Labour Government, Mr Nordmeyer, in Oamaru today.

“By publishing part of the letters sent to the promoters of the aluminium rolling mill, the Minister of Industries and Commerce (Mr Marshall) would have the public infer that an undertaking was given which is not in the best interests of New Zealand,” said Mr Nordmeyer. “I want to affirm that the arrangements made were, are, and will continue to be to the advantage of this country," Mr Nordmeyer continued. The high tributes paid to the new company by the Prime Minister (Mr Holyoake) when he officially opened the works in November would surely not have been made if he had had any doubts about the origin of the scheme. “The manufacture of the company’s products will not only, create added opportunities for useful employment but will save considerable amounts of overseas exchange,” said Mr Nordmeyer. “At the time discussions were being held with the company’s representatives the possibilities of establishing an aluminium smelting works in Southland appeared remote. “But the company felt, and it appeared reasonable to agree, that it was entitled to the assurance that for a term it eould use its own raw material it sought for a longer period, but was satisfied that it could justify

the large capital expenditure on the terms finally agreed upon. "There is one aspect of Mr Marshall’s statement which is to be deplored. In his desire to create a certain impression he deliberately stops his quotation in the middle of a sentence when purporting to give the text of the agreement with Comalco. “Surely, there is no need to descend to such questionable tactics, however anxious the Government may be to score a political point.

“If the Government be-

lieves there is anything opposed to the national interest in the arrangements made for the establishment of new industries, its proper duty is to call Parliament together, as already requested by the Leader of the Opposition, for the purpose of discussing fully and openly all agreements made either by Labour or National.

“I do not propose to carry this controversy further at this stage. I shall do so on the appropriate occasion,” said Mr Nordmeyer.