E.E.C. REFERENDUM IDEA IS CRITICISED

Press, Volume CXI, Issue 32524, 6 February 1971, Page 16

E.E.C. REFERENDUM IDEA IS CRITICISED

A referendum on whether Britain should or should not join the European Economic. Community would be totally irresponsible, Lord Remnant, a director of the A.N.Z. Banking Group, said in Christchurch yesterday.

Such a move had been suggested by a former Labour Minister, but Lord Remnant said that the issue, as far as the man in the street was concerned, was clouded with emotionalism. “People who believe themselves well informed on the subject find it very hard to weigh the pros and cons of membership, so what hope is there for the ordinary man?” said Lord Remnant

He said he personally believed that Britain was likely to gain entry to the E.E.C But specialists were very concerned about the cost that membership would involve. The standard of. living in E E.C. member countries had risen 20 percent more than in Britain.

Lord Remnant, who is visiting the banking group’s branches in New Zealand, said he was unable to comment on the collapse of the RollsRoyce company because he was a partner in the firm of Touche, Ross and Company, which did the accounting for the company. Asked what changes he foresaw for New Zealand ban kers because of the Government's announcement this week that a number of overseas banks are to be allowed to have representative offices in the Dominion, Lord Remnant said that on a longterm basis, the Australianbased banks and the A.N.Z.

group would have to be ready to accept competition from American banks. At present he saw no reason why American banks should not be allowed entry. Regarding the inflationary trend in New Zealand Lord Remnant said that the strength of monetary control in New Zealand by the Gov-

emment was much greater than in many other parts of the world. Although considerable pressure was brought to bear by the Government in Britain it was rather less specific than in New Zealand. He said that both countries faced similar problems with wage and price spiralling. Ir Britain the Government was trying to influence public opinion against irresponsible wage demands, while New Zealand was trying to introduce a price and wages restraint system. He said it was essential that New Zealyand find a solution to this problem.