PARLIAMENT Govt. Blamed For Lack Of Investment Capital

Press, Volume CI, Issue 29916, 1 September 1962, Page 12

PARLIAMENT Govt. Blamed For Lack Of Investment Capital

(N.Z. Press Association) WELLINGTON, August 31. The Government’s attitude towards industrial development was blamed for the lack of investment capital by Mr N. V. Douglas (Opposition, Auckland Central) in the House of Representatives today when the Opposition attacked the Government on its attitude towards industry- during an imprest supply debate. Mr Douglas accused the Minister of Labour (Mr Shand) of “letting go a clanger” in Dunedin due to “confused thinking." He said Mr Shand’s claims of being misreported were becoming an annual affair.

Twelve months ago he had claimed he had been misreported by an Auckland journalist. “Now he claims he has been misreported by two journalists writing for competing papers. He has been challenged by the Dunedin Journalists’ Association to make available his speech notes and interpolation or a tape recording of the speech," said Mr Douglas. ‘That’s all he has got to do." Mr Douglas said he wanted to know why the Minister of Industries and Commerce (Mr Marshall) had not brought down the promised white paper on industry. Mr Marshall had promised the white paper last session if possible, Mr Douglas said. Yet only recently he had said he had no recollection of such a promise. "What are we to think of a Minister who can't remember what he said on an issue of vital importance to the welfare of New Zealand?" Mr Douglas asked. "Industrial development is the most vital question facing the country. After 21 months he reveals that he has got no policy and is not prepared to present one." Mr Douglas said the Government was hiding behind the "stupid, inept cliche" of "steady-does-it” and the defaulting memory- of the Deputy Prime Minister.

“There has got to be a policy which inspires confidence in the minds of people wanting investment opportunities.” said Mr Douglas “The present attitude of the National Government towards industrial development is responsible more than any. thing for the fact that there is insufficient investment capital available for industrial development.’’

Mr Douglas emphasised that consumer purchasing power and production went hand in hand Plans For Coast

The Minister of Marine <Mr Gerard) said a survey by the Department of Industries and Commerce in the first half of this year showed that there was more interest by overseas investors in es•ablishing industries in New Zealand than ever before in the history of the country. The position was the exact opposite to that predicted by the Opposition on the ending of the Nelson cotton mill agreement. "The climate for invest-

ment is right in New Zealand because of the sensible ‘steady-does-it' policy of the Government,” said Mr Gerard.

He cited, as examples, a plastics industry at Timaru and McSkimmings Industries' new £250.000 plant at Dunedin. “This Government is going to assist the West Coast. We have gone carefully through the report of the West Coast committee,” said Mr Gerard. Industries based on forestry were planned, as well as the carbide plant at Westport and a plywood factory a! Runanga. Mr Gerard said that the Government would avoid monopolies and establish sound economic industries. Sir Basil Arthur (Opposition. Timaru) said the country had to face the fact that in 10 years’ time another 200000 jobs would be required. Mr Shand Explains Mr Shand said the industries started under Labour received such substantial protection that they provided gilt-edged investments. Mr Shand said one line from a recent speech of his had been made into a headline. "Wages in New Zealand Are Too High.” He had actually said: “We must find out more about the level of wages we can sustain in this country today.”

Mr Shand said his whole speech had been on the question of wage determination and a level of wages that would avoid inflation and allow a just share of the national income which could be spared from investment.

He said that the South Island was extremely worried about the drift of people to the north, and he thought that cheap power would encourage industry to come to the south. He had been disappointed when the cable factory went to Christchurch, instead of Marlborough, and the oil refinery to Whangarei. Mr N. E. Kirk (Opposition. Lyttelton): Why put a bicycle factory in Hastings while most bicycles are used in the South Island. Mr Shand: Because a manufacturer in Hastings had been making articles there for a number of years and was prepared to import the machinery for the making of bicycles. He is guaranteed nothing, except being permitted to bring in the materials to make th? bicycles. .