INDUSTRY IN N.Z. Possibilities After Smelter ‘lmmense’

Press, Volume CVIII, Issue 31741, 26 July 1968, Page 14

INDUSTRY IN N.Z. Possibilities After Smelter ‘lmmense’

(New Zealand Press Association)

WELLINGTON, July 25.

The possibilities for industrial development in New Zealand were immense after the break-through in tax concessions given to the two Japanese companies and Comalco to establish an aluminium smelter at Bluff, the Minister of Justice (Mr Hanan) said in Parliament today.

He said during the Budget debate that the Comalco agreement, initialled recently by the Government, established the opportunity for other overseas companies to invest in New Zealand and to help develop its mineral and other resources. “This is one of the real and many advantages which resulted from the Comalco negotiations,” said the Minister. Mr Hanan said the three companies planning to establish the smelter had sought no market protection from the Government and he asked the help of other South Island members of Parliament to encourage the smelter company to sell its aluminium f.o.b. (free on board) at Bluff. In this way, he said, there would be a “great opportunity” for encouraging the establishment of industry at Dunedin, as transport costs to the South Island would be cheaper than elsewhere. "If we can purchase aluminium cheaper than the rest of New Zealand it could be a breakthrough for Dunedin, where there is an efficient work force and a strong industrial base,” said Mr Hanan.

Mr W. E. Rowling (Lab., Buller) criticised the Government for its “inadequate fumblings” over the handling of the economy and spent the bulk of his half-hour speech on the reasons behind New Zealand’s current economic plight. He claimed that the Government, by its actions of economic expediency over the last few years had retarded the development of the country for a long tijne to come. “Building On Sand” Mr Rowling said: “If the Minister of Finance’s policies continue on the present pattern, the House and the country should know we are building on sand.

“Far from developing a spirit of national pride and a spirit of independence inherent in New Zealanders we are placing this country’s inheritance in international pawn,” he said.

What the country needed was a clear statement of fact on New Zealand’s future economic policy. Mr Rowling said the Budget had failed to give a concerted drive to the economy —instead it showed the inadequate fumbling of the problem. “Trying to get something from this Budget would be like trying to pick up pieces of confetti from a wet pavement,” he said.