U.K. Industry Apprehensive Over N.Z.-Aust. Free Trade

Press, Volume CIV, Issue 30783, 22 June 1965, Page 20

U.K. Industry Apprehensive Over N.Z.-Aust. Free Trade

British industrialists felt that if New Zealand made a free trade arrangement with Australia, even a limited one, it could result in “reverse” preferences, said the secretary of the Canterbury Manufacturers’ Association (Mr R. T. Alston) last evening.

Reverse preferences, he said, would favour Australia against British goods.

Mr Alstom was making his official repo-rt to the monthly

meeting of the association on his recent five-week, 30,000mile Commonwealth Relations Office tour of Britain.

The visiting group of secretaries of various manufacturing associations in New Zealand, of which he was a member, said Mr Alston, assured the British industrialists that at this stage, the New Zealand Manufacturers’ Federation was strongly opposed to any limited free trade agreement with Australia. In a comprehensive report, Mr Alston spoke on the E.E.C., immigration, the engineering industry, shipping, and industrial development. On the subject of shipping, •Mr Alston said he had put the views of Canterbury manufacturers very forcibly to a member of the Conference Line (Mr C. A. W. Dawes). “I told him that manufacturers were not obtaining a good service because of lack of direct shipping and that some industries were buying goods from other countries which were offering better shipping services,” said Mr Alston. ‘•I also said that if the Conference Lines continued to deny us more direct ships, the port of Lyttelton would suffer still further. “I pointed out to Mr Dawes that many of our members, particularly in the clothing industry, were getting most of their goods shipped in via Wellington and Auckland, as this was the only way of getting continuity and assured supplies.” Mr Dawes agreed, said Mr Alston, that if Canterbury could guarantee about 1000 tons of inward cargo through Lyttelton each, month more ships would make a first port of call at Lyttelton. Survey Suggested

Mir Dawes suggested that the association carry out a survey of the business and commercial community on the prospects of increasing cargo shipments through Lyttelton.

In spite of the low tonnage of cargo, the lines had arranged seven sailings to discharge at Lyttelton as their first New Zealand port during the period July, 1965, to June, 1966. This was an improvement, but Lyttelton should have at least one direct Ship a month. Mr Alston recommended that the association carry out a survey, as suggested, and that this subject could be discussed with the Lyttelton Harbour Board as it was vitally affected by the drop in tonnage at Lyttelton. Development

On industrial development, Mr Alston said that Britain had, to a degree, similar problems to New Zealand. “Although we have, in the past, possibly said that we do not wish to see the direction of industries to particular parts of New Zealand, this, in major industries, is taking place in Britain and perhaps our own industrial development committee should have a further look at this, based on the information I have brought back from Britain,” said Mr Alston.

“It is becoming generally accepted in Britain that they must make better use of their available land resources a more rational distribution of population, and planned expansion of industry.” The question of Britain and the E.E.C. arose in practically all discussions, including that with Members of the

House of Commons, said Mr Alston.

Mr Alston gained the impression that there was a lively interest throughout Britain in the E.E.C., and it was expressed by many industrialists, that Britain should ultimately join the E.E.C.

The special position of New Zealand in its trade relations with the United Kingdom was widely recognised, and the hope was expressed, that in some undefined way Britain could enter the E.E.C. without damaging trade relations with New Zealand. Immigration

Mr Alston said that after hearing so many reports in New Zealand that skilled tradesmen were not available in numbers for immigration to New Zealand, the party was surprised to find that there was a terrific interest in immigration to the newer countries, particularly Australia, Canada and New Zealand.

“I appreciate that Government policy on immigration, is one of dampening down because of the economic thinking that the influx of migrants on any large scale would be inflationary under present conditions. This is correct in short-term periods, but if New Zealand is to develop along with other nations, we must go through a period of inflation if we are to grow into a nation of growth,” said Mr Alston. Mr Alston said that British industry was characterised by great differences in the efficiency of firms producing similar products. “Competition alone seems to have had little effect in improving the standards of less efficient firms. An attempt is now being made to correct this situation by the British Institute of Management, by its Centre of Interfirm Comparison. The centre maintained the necessary degree of secrecy, analysed the survey results, and then supplied reports giving detailed comparisons of costs and profitability. “Though it is not staffed to give full management advice service itself, information about comparative costs could prove a useful guidance on investment decisions,” said Mr Alston.