Effects Of Free Trade Discussed

Press, Volume CIII, Issue 30468, 16 June 1964, Page 16

Effects Of Free Trade Discussed

Not many New Zealand clothing manufacturers would be able to compete with Australia in the event of a customs union, said Mr C. H. Stockbridge at the monthly meeting of the Canterbury Manufacturers' Association last evening. He was discussing how a possible New Zealand customs union with Australia might affect the clothing trade. "Quite a lot of us would be put out of business,’’ he said. Some workers that the New Zealand clothing industry had to put up with were not really up to the standard it should require. • In Australia, where there was a policy of immigration, said Mr Stockbridge, manufacturers were able to draw very freely on a pool of workers. Other features in Australia’s favour in clothing manufacture included materials being 10 per cent cheaper for the Australian manufacturer and very much larger markets, orders, and manufac-. turing runs that made for good production performances. Plant that could be. kept going for 24 hours a

iday enables the use of more I specialised machinery. I Piece work, he said, was allowed in Australia, but in New Zealand piece work was prohibited under the clothing trade awards. Mr Stockbridge said that the clothing industry was- one l of the best organised and most economic in New Zealand. But at the very least free competition from Australia would end any further j expansion. It would mean the closing of small plants and : difficulty for those in the trade to maintain their jobs. ; taken by rabbit boards. Mr W. A. Bascand said that ; New Zealand could mark time ■on any- free trade agreement with Australia for two years. I A review, he said could be ■made of the position after 'the completion of the Kennedy round at G.A.T.T. talks at Geneva. Mr Bascand said that any tangible proposal for liberalising trade between the two countries could not escape consideration of currency devaluation. “Manufacturers in Australia are free from the handicap of import license for obtaining machinery and raw materials,” he said. The president (Mr R. G. Pearce), said that it would be best to leave the subject until details of proposals were laid open to Cabinet and the country. This action was decided on.