P.M. Attacks Opposition Attitude To I.D.A.

Press, Volume CVI, Issue 31153, 1 September 1966, Page 3

P.M. Attacks Opposition Attitude To I.D.A.

(New Zealand Press Association) WELLINGTON, August 31. The Prime Minister (Mr Holyoake) today claimed that the Opposition was “lining up with the Communist countries” in its refusal to support New Zealand’s proposed membership of the International Development Association, an affiliate of the World Bank. *

“The Opposition want to continue to line themselves up with the Communist countries in refusing to join the World Bank, the International Monetary Fund and the International Development Association,” Mr Holyoake said.

After loud Opposition objections, he said: “Very well, then, the Opposition have refused to line up with the Western democratic countries in joining the World Bank, the International Monetary Fund and the 1.D.A.”

Mr Holyoake said it was utterly ridiculous to say New Zealand should deny itself the opportunity to help underdeveloped countries through the organisation, whose membership included most western countries but not the Communist countries.

The Prime Minister was speaking during further debate in the committee stages of the International Agreements Amendment Bill, which provides for New Zealand’s membership in the Asian Development Bank and the I.D.A. “Labour speakers talk with tremors in their voice about helping under-developed nations,” said Mr Holyoake. “But for some foolish reason they are not going to join with other Western democratic countries in joining the 1.D.A., which can assist almost any country in the world.” The Leader of the Opposition (Mr Kirk) said only five of the countries which would benefit from the I.D.A. were Commonwealth countries. “It is quite false for the Prime Minister to argue that

this is going to make £1 million extra available to .developing countries. ■" “The Opposition is supporting the part of this bill which will give immediate assistance to developing countries,” Mr Kirk said. The National Government had doubled the amount of aid given by New Zealand, Mr Holyoake said.

“In Difficulty”

The Under-Secretary of Finance (Mr Muldoon) said the Opposition was in great difficulty with the bill and the section it opposed. On one hand the party advocated more aid, and on the other it rejected an organisation which gave aid. He said the Opposition’s objections to the bill were illogical and “must be a laughing stock in other countries.” He asked what the Australian and British Labour Parties would think. Mr W. E. Rowling (Opp., Buller) said: “We not only advocate more aid; we will give more aid.” That aid would be given in the most effective way, he said. Although the Minister of Finance (Mr Lake) had said that New Zealand’s contribution to the I.D.A. would be about £1 million a year for five years, the Government had completely failed to indicate what the country’s commitment would be, Mr Rowling said. Borrowed Money Mr R. J. Tizard (Opp., Pakuranga) said the Government was asking New Zealand to borrow money then lend it to the I.D.A. so that the I.D.A. could lend it to someone else. The subscriptions had recently been raised and were under review again. “Why should we rush to put our name on the bottom of the list when we cannot put our money down with it?” he said. “The Labour Party says this sham is not going to fool anybody.” The Minister of Finance

(Mr Lake) said he hoped New Zealand would one day have an executive director on the board of the loan organisations. The bill was designed to give the Government power to enter negotiations for I.D.A. membership, he said. He said that Dr. A. M. Finlay (Opp., Waitakere) had

urged aid for the Pacific, and had claimed that the Government wanted to join the I.D.A. to try to please the World Bank and the International Monetary Fund. Good Relations Mr Lake said he made no secret of having good relations with them. “You’re the World Bank’s best customer,” interjected Mr N. V. Douglas (Opp., Auckland Central). “We are regarded by the World Bank as a very good country with whom to do business,” said the Minister. He said he was somewhat bothered by the Opposition’s

continued criticism of the World Bank and the I.M.F. One day a Labour Minister of Finance would suggest to the Cabinet that New Zealand should remain a member of those organisations, he said. Mr N. V. Douglas (Opp, Auckland Central) asked how much had been paid by member nations of the I.D.A. The Minister said the amount available was 1682 million dollars, of which 1365 million was committed. Mr P,‘ J. Tizard (Opp, Pakuranga) said New Zealand would bi revealed as a “hypocrite” under the clause of the bill which provided for New Zealand’s eventual membership of the I.D.A. Mr H. L. J. May (Opp., Porirua) said New Zealand could contribute more to developing countries in goods than in money. No-one could expect New Zealand to' increase financial assistance while her present balance of payments problems continued. “Boosting Trade” Mr D. J. Riddiford (Govt, Wellington Central) said the important factor in assisting Asian countries was to develop their economies so they could afford to buy New Zealand produce. Quoting from the preamble to the second schedule, Mr Riddiford said that by joining the I.D.A. New Zealand was joining an organisation which fostered the growth of international trade. How could that be better done than by building up the economy of less-developed countries, he said. Gone was the day when it was believed hand-outs were the best way of assisting countries. The Government should not at the appropriate time be prevented from joining the I.D.A. The Opposition’s position was a poor one, and it was opposing I.D.A. membership with specious arguments. It was important that every argument be examined and refuted, said Mr Riddiford On the clause which provides for membership of the I.D.A, the Opposition lost a division by 32 votes to 38. A second division called by the Opposition over a schedule to the bill dealing with membership of the I.D.A.—was also lost by the Opposition by 32 votes to 38. The bill was passed through its committee stages.