Aust. Supply Minister Here To See Potential

Press, Volume CIV, Issue 30823, 7 August 1965, Page 1

Aust. Supply Minister Here To See Potential

The possibilities of New Zealand industries being given important preferences to help service Australia’s big defence build-up associated with South-east Asian security, will be the subject of talks in Wellington early next week between the Australian Minister for Supply (Mr A. Fairhall), the Prime Minister (Mr Holyoake) and the Minister of Defence (Mr Eyre).

This was announced in Christchurch last evening by Mr Fairhall, on his arrival from Australia for an eight-day New Zealand tour to assess the nation’s defence production potential.

“This is not some kind of political odyssey, as far as I am concerned.” said Mr Fairhall. “It is purely a commercial venture.”

Australia had sent him to New Zealand to show that Australia was prepared to “put its wallet where its tongue was.” Australia was looking for some area in which it could give New Zealand the opportunity to contribute to Australia's defence supply. Heavy Industry

Mr Fairhall said that he planned to “look at the heavy industry." Asked what type of defence material was being sought from New Zealand. Mr Fairhall said: “The whole field of defence supply. Only earlier this year, we had a departmental officer of supply here, who looked in some detail at the processed food industry, forest products, and textiles, but he did not look at secondary industry, engineering, tooling, sheet metal work and so on. ' “I will be looking at the heavy industry in New Zealand.” Mr Fairhall said that much of the res ilts of his present visit hinged on the outcome of New Zealand-Australia free trade talks in Canberra early next week between the Minister of Overseas Trade (Mr Marshall) and bis Australian counterpart (Mr McEwen). “If some of the industries in the defence supply sphere fall within a potential freetrade area, then I believe it will be possible for us to promote some joint arrangements with New Zealand in

defence supply,” said Mr Fairhall. “1 come here genuinely looking for some arrangements which will join us in a co-operative logistic supply effort.” Mr Fairhall said that if this question of defence supply became a reality, New Zealand ano Australia would be developing what he believed to be a much-needed close liaison between the two countries.

In Christchurch on Monday, as part of his personal assessment of New Zealand’s secondary industry, he would visit Mace Engineering, Ltd., a precision engineering and automotive engineering company, and C. W. F. Hamilton and Company, manufacturers of earth-moving and industrial equipment. One of ihe important as-

pects of the defence of Australia and New Zealand, he said, was the strength of its industrial base. “I think there is a need for use to look at this problem together to see if we can make a joint contribution,” said Mr Fairhall. “Just as we in Australia have problems in tying automated highly-mechanised industry to a small populaiton of 11 million people, we understand very well that New Zealand’s problems in tying modern industry to a much smaller population is much more difficult than ours. “Therefore, New Zealand has our sympathy on this. “In the last year, arrangements have been made so that the notifying of the calling of tenders for defence supplies is done through the New Zealand High Commissioner's office in Canberra. Out Of Court “The problem has been that the Australian level of tariff has tended to put New Zealand quotations somewhat out of court. We come to the bone of this thing. . . . Originally the talks between the respective Ministers of Trade (Mr Marshall) and (Mr McEwen) were scheduled for Canberra this week. Unfortunately they have been postponed and will not now take place till next week. “This delay has not embarrassed me at all. But it means that I cannot read any conclusions this week. “The real objective of the trade talks is to see if there is some area in which free trade between the two countries can be developed. This will be after proper safeguards have been provided for the key industries of both

New Zealand and Australia.” On the question of supply to the Australian Government, Mr Fairhall said Australia was insisting on Australian industry being given the full protecton of the Australian tariff. “This means that in comparing Australian and overseas tenders for supply equipment, we are comparing them on a duty-paid basis,” said Mr Fairhall. “This highlights the importance of the situation hopefully where some of this defence supply will fall into the free trade area. If it does, New Zealand manufacturers will be in a vastly better position. Unfortunately we will not know about this before the trade talks between our respective departments of trade.”