Approach To F.O.L. Fails

Press, Volume CV, Issue 31042, 23 April 1966, Page 1

Approach To F.O.L. Fails

(New Zealand Press Association)

WELLINGTON, April 22. A last-minute bid to break the deadlock in negotiations for employing Italian labour at the Tongariro power scheme failed today.

Dr. M. Barendson, promotion manager for the Italian Codelfa-Cogedar combine, whose tender is favoured for the scheme, said tonight he had made the attempt to reopen negotiations at the request of the Government. Dr. Barendson spoke minutes before boarding a plane to leave New Zealand.

He said he had approached the Federation of Labour at the request of the Government. He said the secretary of the federation (Mr K. McL. Baxter) told him it was up to the Government to make a direct approach to the federation.

[ Dr. Barendson said Mr Baxter told him the federation would take no further ■ action on the matter until its I annual conference, which would open in Wellington on May 3. • | Dr. Barendson said the crux I of the whole dispute was the [Government’s interest in the [ price variation clause in the j Tongariro contract. This ! provided that the Govern-

ment bear the cost of wage increases higher than those paid at Manapouri. He also said CodelfaCogedar would wholeheartedly accept wage rates comparable with those being paid on the Manapouri scheme for its workers at Tongariro. “Our negotiations on the price variation clause were to establish if, and to what extent, wage levels above those of the Manapouri power scheme would be borne by the Government and not by us.

“In my view, this is the principal cause of the Government’s present attitude in the disagreement,” he said. Dr. Barendson said he would fly to Australia en route to Rome tomorrow, but was confident he would return.

“We still hope to carry on in New Zealand. I am going back to await developments, or until I hear that the F.O.L. will agree to a resumption of our talks,” he said.