Foreign investment

Press, Volume CXV, Issue 34031, 20 December 1975, Page 14

Foreign investment

Sir, — You are reprinting Dr R. S. Deane’s endorsement of foreign investment in New Zealand. However, Dr Deane’s mistake lies in the fact that he ignores the economic and political power which goes with economic control. He states “there is plenty of evidence available to suggest that both overseas and locally owned companies in New Zealand engage in widespread collusive and restrictive trade practices . . . Yet these three problem areas — balance of payments, protection and monopolistic tendencies . . . are each amendable to Government policy.” International corporations are more powerful than our Government. A recent writer in the 1.M.F./1.8.R.D. Finance and Development magazine writes more correctly: "The imposition of controls, should perihaps be viewed as a futile I attempt by the official sector of the world economy to retaliate against the increasingly strong waves of internationalisation in the private [sector and such attempts [only encourage private [transactors to search for 'ways to circumvent them.” — Yours, etc., W. ROSENBERG. December 18, 1975.