WORLD BANK LINK SEEN

Press, Volume CV, Issue 31041, 22 April 1966, Page 1

WORLD BANK LINK SEEN

(New Zealand Press Association)

AUCKLAND, April 21. The president of the Federation of Labour (Mr T. E. Skinner) described the intervention of the Minister of Works (Mr Allen) in the Tongariro power project talks as a deliberate attempt to put the blame for poor Government planning on the Trade Union movement.

“If the project is delayed because of this breakdown and a power shortage results in. say 1969. a National Government could blame the F.0.L.” said Mr Skinner. Mr Skinner said it was significant that after the last World Bank loan negotiated bv the Minister of Finance (Mr Lake) there had been credit controls in New Zealand. “Clearly, the World Bank has told New Zealand to tighten her purse-strings and this hasty action is the present Government's way of doing it.” He said other ways could have been found compulsorily to delay the project without implicating the F.O.L. The Minister could have approached Codelfa and told the Italians of the economic problems facing New Zealand. He could have indicated wage figures the Government would settle for and in the negotiations Codelfa could have withdrawn if satisfactory

agreement was not reached with the F.0.L., said Mr Skinner. If the Government wanted conditions at Tongariro similar to those at ManapouriWest Arm, it should have negotiated rates with the F.0.L., instead of inviting the federation to reach agreement with the Italians. Had the F.O.L. accepted the conditions on wages mentioned by the Minister, the Italians would be paid at rates lower than those to be received by Ministry of Works employees under the recentlyapproved ruling rates increase. From the start of negotiations with the Italians, the Government had indicated that it was prepared to accept the Codelfa tender for the tunnels, provided a satisfactory agreement was reached with the F.O.L. The F.O.L. had fallen over backward to accommodate the Italians and negotiations had been moving along smoothly until the Minister interferred, lhe said.