Unemployment Threat Seen

Press, Volume CIV, Issue 30830, 16 August 1965, Page 1

Unemployment Threat Seen

(.N’Z. Press Association! DUNEDIN, August 15. “The free trade agreement with Australia which has just been signed, could well contribute to the downfall of the Government,” the Leader of the Opposition (Mr Nordmeyer) said in Dunedin today.

“It must be obvious that if New Zealand has obtained concessions from Australia she must have had to make concessions in return,” he said.

"The concessions we made could result in some of our industries having to close down. This will certainly result in some contemplated industries not proceeding with their plans.

“Without knowing details of the agreement it is not possible to specify what items and industries are likely to be affected, but there are grounds for believing that the woollen industry and, in particular, the proposed tops

production are likely to be affected.

“If free trade between Australia and New Zealand were as beneficial as its promoters hope, 1 would have expected that free trade between the six Australian states, which has existed since the beginning of the century, would have benefitted all states to a similar extent “In fact, this is far from being the case.” Mr Nordmeyer said. “Expansion has been rapid in some states and appallingly slow in others.

“Rapid industrial expansion in New Zealand during the last 15 years has resulted in full employment, and it is quite possible that the effect of Australian competition will be to create unemployment in fields where it has not existed for many years.

“This threat,” he said, "we regard as the most serious aspect of the new proposals.”