Opposition Reiterated

Press, Volume CIV, Issue 30822, 6 August 1965, Page 14

Opposition Reiterated

(N.Z. Press Association) WELLINGTON, August 5. The council of the Manufacturers’ Federation has unanimously reaffirmed the federation’s opposition to New Zealand entering into a limited free trade agreement with Australia and congratulated the president (Mr S. J. Paul) on his handling of the - federation’s representations on the question. “I am afraid our negotiators will try to reach an agreement, even if they have to

concede some vital safeguards,” said Mr Paul at the meeting. “The Government should make sure of the basic safeguards. If these cannot be obtained, no agreement should be made.” Members of the council stated that reported comments that “some manufacturers” were against a free trade agreement grossly understated the position. It was emphasised that an overwhelming proportion of

manufacturers were opposed to an agreement; only a few were in favour or were willing to acquiesce. Concern was expressed by the council that import licensing provision for plant and other development items were already being tightened up, although the licensing year was barely a month old. Plant modernisation was one of the areas in which manufacturers had suffered from a disadvantage, compared with Australian manufacturers, and the cumulative affects over a period of years had created a serious imbalance. A member of the council cited the example of a major English company with Australian interests which had decided to scrap plans for manufacturing in New Zealand because of the possibility of a free trade agreement between the two countries It was felt that if this kind of adverse action was developing during the discussion stage, it would accelerate rapidly if a decision was made to enter a free trade agreement. The council expressed alarm at the severe affects this would have on future economic development in New Zealand.