Labour Apprehensive Of Canberra Talks’ Outcome

Press, Volume CIV, Issue 30823, 7 August 1965, Page 3

Labour Apprehensive Of Canberra Talks’ Outcome

(From Our Parliamentary Reporter)

WELLINGTON, August 6.

The competence of the Minister of Overseas Trade (Mr Marshall) to be New Zealand’s representative at the talks in Canberra on the formation of a limited free trade area between New Zealand and Australia was challenged today by members of the Opposition.

In a debate over the estimate of the Department of Industries and Commerce, Opposition members also accused the Government of avoiding a debate on the subject.

The Canberra talks begin on Tuesday Dr. A. M. Finlay (Opp., Waitakere) said he had grave doubts about the capacity of Mr Marshall to match the toughness of the Australians in the negotiations he was about to undertake.

The closer the date of Mr Marshall’s departure came, the deeper the apprehension of the Opposition grew, said Dr. Finlay. It was not the concept of a free trade pact, as such, that worried the Labour Party, but a lack of confidence in Mr Marshall. It would be easy for Mr Marshall to come back from Australia with an agreement that would look good on the surface. “But the fine print could contain provisions that would have deleterious consequences for New Zealand industry." Dr. Finlay said. “We may be selling our birthright for a mass of promises.” ‘lnferiority Complex’ Mr Marshall said he was not concerned about his capacity to deal with the Australians New Zealanders were just as tough and capable as they were. He deplored the inferiority complex of the members of the Opposition. Mr N. E. Kirk (Opp., Lyttelton) said he was concerned that, though individual firms had been kept informed about the negotiations. Parliament had been denied an opportunity for a full-scale debate on the question. The inclusion of the woollen industry in the agreement would have a serious effect on the wool tops industry in particular. The Prime Minister (Mr Holyoake) said it was impossible for Mr Marshall to announce publicly that “this or that item was being discussed." Mr Marshall said that no commitment had been entered into or sought by the Australians. He would be going to Canberra on Monday with a completely free hand. There was little he could say about individual items it was proposed to include in th-' agreement. He felt, however, that there was real value in discussions by members on what should be done. Any agreement entered into by New Zealand would be mutually advantageous to both countries, particularly to New Zealand. Mr Marshall said. If adequate advantages and safeguards for this country could not be obtained. New Zealand was under no obligation to sign an agreement. Dumping Feared Mr W. W. Freer (Opp.. Mount Albert) said he feared that once an agreement was signed, Australian firms could start dumping their products on the New Zealand market to the detriment of local industry. Mr Marshall said he was confident any agreement would contain adequate safeguards against dumping Manufacturers of Items that were likely to be included in the agreement had been fully consulted, and a number of items had been withdrawn when manufacturers had been able to prove they would be seriously affected.

“An item has not been withdrawn every time a manufacturer has objected,” Mr Marshall said. “The majority of manufacturers involved in the negotiations have agreed with the free trade proposals." Initially, the Tasman Pulp and Paper Company had been enthusiastic over the prospects of the arrangement, said Mr Marshall, but N.Z. Forest Products, Ltd., and other giants of the forest industry had not Now, however, the whole industry supported the proposals. ‘Personal Insult’ The Under-Secretary of Finance (Mr Muldoon) accused the Opposition of delivering “a personal insult” to Mr Marshall. "We are not going to sell New Zealand down the drain for some temporary advantage,” he said. “We have not wrung acceptance out of the forest industry. “If some manufacturers are apprehensive because they have not been consulted, then they have not been consulted because they are not involved.” Mr Kirk: They could be affected, even if not involved. Mr R. J. Tizard (Opp., Pakuranga) said Mr Marshall was the Minister who had “folded up” in the face of a few textile wholesalers over the Nelson cotton mill scheme. “We are not at all satisfied he can battle the Australians on their own ground.” There was no evidence, said Mr Tizard, that the consumer would derive any benefit from the arrangement. “Certain big companies may well do so.” Mr H. E. L. Pickering (Govt., Rangiora) said the Government had no fear about Mr Marshall’s capacity and ability to safeguard New Zealand’s vital interests. “The expertise . of the Minister stood New Zealand in good stead at the time of the E.E.C. negotiations.” New Zealand manufacturers would benefit from a limited free trade area. It would enable them to have more markets and, therefore, have longer production runs. Many In Doubt The Deputy-Leader of the Opposition (Mr Watt) said there were a considerable number of people who doubted the ability of Mr Marshall to negotiate with his counterparts in Australia. “We wish him well, but we are disappointed he has discussed fully with the people who are affected details of negotiations, but has refused to discuss these details with the house, or to say how it will affect New Zealand,” said Mr Watt. “The Minister could have called the Industries and Commerce Committee of the House together and discussed details with it. He has completely ignored the representatives of the people. “If the Minister wanted the

support of the Opposition he should have taken it into his confidence. “The Minister has said it could well be a fait accompli before he comes back and this House will have no chance of debating the content. The Minister of Transport (Mr McAlpine): It has to be ratified. Mr Watt: Surely the Government would not let the Minister down once he has put his signature to it. Finished Products Mr Watt said New Zealand was in a strong position to negotiate because it bought three times more from Australia than Australia bought from her. The Opposition would be concerned if New Zealand bought more from Australia at the expense of Britain and other Commonwealth countries. Mr Marshall said there could be greater employment opportunities under the free trade area because there would be higher production. “The aim is not to supply raw materials such as wood pulp instead of finished products such as newsprint and kraft paper.” Opposition voice: They say they don’t want kraft paper. Mr Marshall: I know, but that is what we want and are negotiating. If we can’t get it, of course we won’t get an agreement. We’re not going to become a raw materials supplier for Australia. The terms of the agreement would assure adequate safeguards for the continuing development of New Zealand industry. The Government did offer to make the information avail-

able to the Opposition on a confidential basis. “There is no reason why it shouldn’t be done on that basis,” said Mr Marshall. Mr A. J. Faulkner (Opp., Roskill): It’s a worthless offer It would tie our hands. Mr D. Maclntyre (Govt., Hastings) said Mr Marshall had negotiated the quota agreement in the United Kingdom, and the “dairy people” regarded him as a very hard bargainer. “The British are the champions when it comes to toughness as negotiators." Mr C. J. Moyle (Opp., Manukau) said the establishment of a nylon factory at Wiri had a bearing on Mr Marshall’s competence. Was it a fact that a downward trend in world nylon prices had been apparent since 1960? Was it also a fact that nylon prices were expected to decline another 25 per cent in coming years? “There Will be no competition between Von Kohoms and Fibre Makers,” he said. “The enterprises are complementary.”

Review Provision Mr J. R. Harrison (Govt, Hawke's Bay) said the phenomenal rise in manufacturing in New Zealand had been largely due to the competence of Mr Marshall. Mr Marshall said the agreement with Australia would embody provisions for consultations and review. There would also be provision for items to be withdrawn. He said the two nylon enterprises were competitive in the fullest sense. Mr Moyle: No, complementary. Mr Marshall: I can assure the member they are highly competitive. Mr Moyle: But will they be? Mr Marshall said the agreement was an “eminently sensible” one, and that he would be glad to sign it again, if that were necessary.