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Salient: Victoria University Students' Paper. Vol. 25, No. 4. 1962.

Vested Interests

Vested Interests

The main opposition to the Cotton Mill came from the local manufacturers, importers and distributors of cotton goods. Nordmeyer pointed out that the middle-men derive a greater income from these goods than do the manufacturers. They exerted great pressure (£1,500 worth) on the Government and it succumbed.

On February 14, 1962 the Cotton Mill agreement was abandoned. Enthusiasm to invest in this country has waned, because of this.

The Prime Minister stated recently that government had not terminated the agreement unilaterally, both parties being anxious to do so. He said that he would seek permission to publish the company's letter showing this. That letter had been in the Government's hands, claimed Nordmeyer, since September last.

In fact the company did Not offer to terminate the agreement, but only admitted, in this letter, that it could be terminated if the government were determinedly hostile to It.

Contrary to the Prime Minister's statement the Director of the company concerned states it was Cabinet that proposed abrogation of the agreement.

Was the agreement legally binding? It must have been, because otherwise there would be no need to pay compensation.

There is some confusion about how much we will have to pay for the privilege of not having a cotton mill. Mr McAlpine suggested £1 million, Mr Holyoake £¼ million, Mr Marshall, who, as Minister of Industries and Commerce, should know, said £½ million.

Mr Nordmeyer concluded that it was evident that all scandal in the cotton affair was due to the actions of the National Party Cabinet.

R. J. B.