Mr Marshall’s Views On Synthetics Questioned

Press, Volume CVI, Issue 31223, 22 November 1966, Page 12

Mr Marshall’s Views On Synthetics Questioned

Synthetics have a legitimate place in consumption, complementary to rather than competitive with wool, the Minister of Industries and Commerce (Mr Marshall) says in reply to a letter from a correspondent, “Staggered,” who had questioned statements made by Mr Marshall at Wairakei.

“Staggered” wrote: “At Wairakei Mr Marshall made weak excuses for permitting the importation of synthetic fibres into New Zealand, whose whole economy is dependent on wool. May I ask if these synthetics are admitted duty-free while our own product (wool), having been sold to overseas manufacturers to provide New Zealand with overseas currency, has a heavy tariff imposed on its re-entry to New Zealand after being processed? Surely not much of an incentive for overseas buyers to purchase our wool. Further, do these synthetics come from America, which has a heavy duty on the import of our wool? Mr Marshall’s suggestion that we should manufacture synthetics from imported materials (I presume purchased by overseas credits from the sale of wool) and admitted duty-free is indeed shortsighted and would amount to national suicide. Obviously Mr Marshall is more interested in manufacturing than in our great farming industry and all the ancillary services it supports.”

“Staggered,” in commenting on part of Mr Marshall’s address to the Textile and Garment Manufacturers’ Federation, begins by referring to the importation of synthetic

fibres, but then attempts to compare them with woollen yarns, Mr Marshall says. “Fibres of course are raw materials for the manufacture of yarns and a comparison between the two is not valid,” he says. “The tariff on woollen yarns is a normal protective one and is generally consistent with that applied in other countries to protect domestic industry from competing imports. New Zealand’s woollen milling industry produces the bulk of woollen yarn requirements. “Imports are only about 5 per cent of total availability and the fact that they attract duty could hardly be regarded as a disincentive to our overseas sales of raw wool. The United States currently supplies about 15 per cent of New Zealand’s manmade fibre imports. “Synthetics have a legitimate place in consumption, complementary to rather than competitive with wool, and the comment made about the manufacture of synthetics in New Zealand from imported raw materials was to emphasise the advantages of manufacturing from basic raw materials rather than importing in a more finished form. In my address I pointed out that New Zealand is still dependent for its growth on the farming industry but manufacturing is making and will continue to make important contributions to our economy. “The assumption made by your correspondent on my attitudes towards the farming and manufacturing industries, apparently based on a small part of my address taken out of context, is not well founded,” Mr Marshall says.