Questions By Opposition

Press, Volume CIII, Issue 30580, 24 October 1964, Page 3

Questions By Opposition

Mr N. E. Kirk (Opp., Lyttelton) said private enterprise had caused the present imbalance of industrial development and the bill would do nothing to correct this. “Industry can only be decentralised by the directive of the State, which has the national interest in mind,” he said. However, the corporation set up by the bill appeared to be mainly interested in private profit. Mr Watt said he could not help but think that the House would not have seen the bill today if the Opposition had not given notice of introducing a bill along similar lines. “I am pleased to see that

the move taken by thei Opposition has forced the Minister to introduce this bill today,” he said. Mr Kirk asked what provision was in the bill to ensure that developed areas would not absorb all the finance. There were areas such as Gisborne, New Plymouth and practically all the South Island which should receive assistance. The corporation should be given inducement to make finance available at favourable terms to the lesserdeveloped areas. Mr Marshall said it was hoped to establish the corporation on a profitable basis. He did not think the State should have the power of directive over the corporation. The development of the country was “running very smoothly and was, perhaps, a lit’le too fast.” Control Queried Mr R. J. Tizard (Opp., Pakuranga) said the most distressing feature of the bill was that 70 per cent of the control in the corporation would be in the hands of private enterprise. “The Government has given no indication of putting limitations on this control,” he said.

Mr Tizard said private enterprise financiers would be prodded into making a profit at the expense of the corporation. is bill serves no urpose. It is just another bit of window-dressing,* and we can see no worth-while use in it," he — : d:

Mr Marshall replied that the Government believed in seeing the country grow. Where the Government could, it would use “gentle persuasion” to encourage industries to develop in the South Island and in provincial areas.

i Mr W. W. Freer (Opp., Mount Albert) asked Mr Marshall how he proposed preventing a large industrial undertaking or a group of large industries getting together and controlling the finances of the corporation. “He told us that insurance companies were going into this field. Can he say whether or not insurance companies will have controlling interests? If they do, the whole bill will be a farce.” Mr S. A. Whitehead (Opp., Nelson) asked Mr Marshall if the corporation would develop the mineral resources of New Zealand to—“capitalise on the research of Government departments.” Mr Marshall: Mining is a very risky venture. You can make a fortune or go broke. The bill was read a first time.