Market Invasion Feared

Press, Volume CVI, Issue 31098, 29 June 1966, Page 1

Market Invasion Feared

(Parliamentary Reporter) WELLINGTON, June 28. The charge that Australian textile interests were planning to invade the New Zealand market for wool cloth was made in Parliament today by Mr G. A. Spooner (Opp., Wanganui) during the Budget debate.

“The Australian woollen mills have had a bad time lately and their eyes are on the New Zealand market,” he warned. "They have a twopronged plan. “First they hope to see the New Zealand Government exempt from import licensing a section of the import trade in woollen cloth and allow this cloth into the country free of duty. “The idea is that lighterweight woollen and worsted fabrics would come into New Zealand without paying duty, as nearly dumped at cut prices, assisted by Australian export incentives and remission of taxation, and without import licences. “The Australian textile mills which are handy to New Zealand would then take from the New Zealand mills a portion of the New Zealand market in light-weight cloths.” Mr Spooner claimed that the Australians would also take part of the New Zealand market in heavier-weight cloths—“for by putting a cheap rubber or foam backing on the light-weight cloths, they will reduce the sale of New Zealand-made medium - weight woollen cloth.” The effect of this would be to Tower the output from New Zealand woollen mills, reduce their orders, increase overseas costs and put off workers. The second point of the

plan, Mr Spooner said, was to press the two Governments into bringing woollen yarn and fabrics into the free trade arrangement. According to a Press Association message from Dunedin a deputation from the Woollen Mills Association wilT meet the Prime Minister (Mr Holyoake) and the. Act-ing-Minister of Industries and Commerce (Mr Lake) today in an attempt to dissuade the Government from lifting im-

port licensing barriers against woollen piece-goods. A Dunedin representative on the association, Mr G. W. Lane, of the Mosgiel Woollen Mills, is a member of the group; Mr B. A. R. Spence, of Timaru, will represent Alliance Textiles, which has mills at Timaru, Oamaru, and Milton.

The association is concerned at what it considers could be organised attacks on the industry by branches of

Federated Farmers throughout the country. It will also ask that some forms of security for the future be given to the industry. The Woollen Milts Association considers if light-weight cloths are exempt from licensing and tariff protection, some New Zealand mills could be prevented from producing them. This could result in many workers losing their jobs.