Dr. Sutch's View Challenged

Press, Volume CVI, Issue 31196, 21 October 1966, Page 16

Dr. Sutch's View Challenged

New Zealand manufacturers had approached the New Zealand - Australia Free Trade Agreement with considerable caution and were fully alert to the tendencies for industry to be gregarious by being attracted to larger centres of population that gave ready access by short lines of distribution to the consumer, said the immediate past president of the New Zealand Manufacturers’ Federation (Mr J. R. Maddren) in a written statement yesterday.

Mr Maddren’s statement said that this gregariousness did not apply to all industries. In fact, it was much more desirable, in some instances where prehaps large quantities of water or extensive areas of land were a big factor, to be in more urban areas.

He said that in a review of the book by the former Secretary of the Department of Industry and Commerce (Dr. W. B. Sutch) published in “The Press” last Saturday, Dr. Sutch (a quotation) painted a very ,gloomy picture of the agreement.

Mr Maddren said it was possible Dr. Sutch had been quoted out of context and his

statement might consequently be somewhat distorted. “But the statement as it reads describes a somewhat extreme situation that could only arise if New Zealand was in fact prepared to sit down and watch herself be slowly bled to death,” he said. “Knowing New Zealanders, I am not prepared to entertain this possibility.” New Zealand has certain natural advantages,” said Mr Maddren. “We have an abundance of cheap hydro-electric power and already we have seen where it has been possible for us to combine this natural resource with the Australian supply of bauxite to produce aluminium. “No doubt there will be many other parallels to this in future years. “Furthermore, it is my considered opinion that the Australians are completely realistic about this proposal and for them to have a continuing and developing market in this country they realise that our industry must be strong and that it must continue to develop. “There is nothing sentimental in this line of thought; it is just a plain commercial fact and it would be no tribute to our friends across the Tasman if we assumed they had not grasped it. “I feel that there will be many opportunities for complimentary manufacturing to develop and it is evident that some progress has been made in this regard, particularly in the automotive field.

“New Zealand has a strong and well developed engineering industry and this is one sphere where we can work together to our mutual advantage and development. “While it is too early yet to draw any firm conclusions because of the shortness of time this agreement has been operating, there are indications that progress is being made. “The Manufacturers’ Federation is taking a Trade

Mission to Australia in March, 1967, and this is further evidence of their determination to take full advantage of all the trading opportunities that exist across the Tasman and in particular those made available to us through the Free Trade Agreement. “We cannot expect to remain completely insulated indefinitely and this trade agreement will test our resilience, our ingenuity and our will to succeed. “Therefore, while still watching the situation closely we must by all means endeavour to take full advantage of all and every opportunity that is offered to us within the terms of the Limited Free Trade Agreement.”