Dr. Sutch’s Views “Extreme”

Press, Volume CVI, Issue 31197, 22 October 1966, Page 1

Dr. Sutch’s Views “Extreme”

(N.Z. Press Association) WELLINGTON, October 21. The Minister of Industries and Commerce (Mr Marshall) today dismissed as “extreme” the views on the New ZealandAustralia free trade agreement expressed by Dr. W. B. Sutch. Mr Marshall was replying in Parliament to a question from Mr D. J. Riddiford (Govt., Wellington Central) on Dr. Sutch’s book, “Colony or Nation? Economy crises in New Zealand from the 1860’s to the 1960’5.” Dr. Sutch wrote: “If Australia and New Zealand become one market, Auckland would, to all intents and purposes, stop growing and all

New Zealand towns would either be retarded or have their industry actually reduced.”

which would depend on increased manufacturing output.”

“Is there any evidence of a deterioration or reduction in New Zealand industry resulting from the New Zea-land-Australia trade agreement?” Mr Riddiford asked. Mr Marshall said Dr. Sutch’s views had “little relation to the realities of the situation.” There was no evidence of a deterioration or reduction in New Zealand industry resulting from the agreement. “In fact, the opposite situation exists.

“Manufacturing output is increasing, and my department is dealing constantly with requests for expansion of existing industry and the development of new units,” said Mr Marshall.

“Indeed, it can be said that the free trade area has generated additional interest in trade with Australia—a trade

Such interest had arisen from the agreement itself, and the existing schedule of products covered by it, from the invitation to extend the range of scheduled products and from proposals to consider industrial development within New Zealand to serve both markets. Mr Marshall said that Australian and New Zealand manufacturers —at an annual joint meeting last August in Canberra —set up a committee to organise an integrated approach to problems of industrial development in the two countries. The possibility of New Zealand making component parts for Australianmanufactured goods was discussed. Schemes of this nature were being examined by officials here and in Canberra. “There is every indication that New Zealand industry,

far from deteriorating as a result of the free trade agreement, has a great opportunity for expansion into a wider market. “Already manufacturers in this country are taking the constructive attitude necessary for them to profit from this opportunity.” Mr C. J. Moyle (Opp., Manukau) asked Mr Marshall to explain why Pacific Steel had to cut back production because of importations of steel from Australia. Mr Marshall said this had nothing to do with the trade agreement.