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Salient: Victoria University Students' Paper. Vol. 28, No. 3. 1965.



A further cause for apprehension in this shift was the extent to which these extra profits went to foreign investors. Even during the period of dismantling of import controls prior to 1958 foreign investors were increasing their share of company profits. After 1958 this movement accelerated. The protected New Zealand market became a paradise for foreign companies setting up branch plants, and for foreign investors to make take-over bids. The inflow of foreign capital into New Zealand speeded up, and profits soared. In the six years after 1957-58 income from direct investment in New Zealand more than doubled to reach a total of £23.2 million in 1963-64. Thus one consequence of the Sutch attempt to make New Zealand less reliant on overseas trade was to hand over a larger share of our National Income to foreign investors.

Income from direct overseas investment in New Zealand:

1951-52 6.7
1952-53 7.7
1953-54 10.8
1954-55 11.7
1955-56 11.3
1956-57 12.0
1957-58 11.4
1958-59 13.6
1959-60 11.1
1960-61 20.1
1961-62 16.7
1962-63 23.0
1963-64 23.2

It is one of the ironies of New Zealand political history that it was a Labour Government which brought in policies which shifted part of the National Income away from the workers. It is a further irony that Dr. Sutch. long known for his left wing and humanitarian views was the chief architect of these policies.—D. A. P.

Income trends before import control, Index 1951-2