Newsprint market

Press, 18 April 1978, Page 18

Newsprint market

When the question of the Albury Forest and the possible establishment of a newsprint mill in competition with the Tasman Pulp and Paper Company came up during his tour of Australia, the Minister of Foreign Affairs (Mr Taiboys) took the attitude that the issue should be settled between the New Zealand company and Australian Newsprint Mills. That was a sensible suggestion, which the sharing of two directors by Tasman and A N M. should have helped to implement The latest suggestion, as yet only a hint, is that the countries will consider protection for their newsprint industries from other nations. If that is what is arrived at, the solution seems far from ideal The newsprint industry has a special place in the New Zealand-Australia Free Trade Agreement because the hope of securing the Australian market for newsprint was a principal factor in New Zealand’s initial decision to enter into the agreement. The Australian Government is powerless to stop the establishment of a mill because of the state and private interests involved. It has become obvious that a sense of betrayal by Australia has been felt in some New Zealand circles. Perhaps it is in response to this that the

Australian Government may be considering providing protection from outside suppliers. Yet that seems an unimaginative solution. Surely the two industries could have got together, with a little Government prodding if that were necessary, and decided on the development of other markets.

An announcement that a mill will be established may be imminent, but production is not. In the years between there will be chances to find alternative outlets. Forecasts of the demand for newsprint vary, but the general picture is not one of gloom. As an exporter, New' Zealand must be concerned at a threat to the loss of some of its Australian market. Yet there seems time to consider moves, to explore the growing market of the Association of South-East Asian Nations, or find whether China, which recently bought newsprint, will buy more. It is not too early to look for co-operation between industries in New Zealand and Australia, but it is much too early to think that the only possible response to this trade problem is to seek protection. The Government has dubbed this “Export Year.” The country should look outwards.