When these two writers decided to find out more about the visit to New Zealand by 20 high-powered West German industrialists. March 18-22, the obvious place to start was the Department of Trade and Industry, who are co-ordinating the German's trip. After the predictable switchboard shuffle while they tried to figure out exactly whom we should talk to, we were connected with the person who would be travelling with the German party and co-ordinating their arrangements.

Our first question was, roughly, "What sort of New Zealand resource inventory has been offered to foreign investors, specifically to the West Germans?" We encountered, not for the first time, stiff Resistance to the use of the verb "to offer." After a bit of careful adjusting of vocabulary, we were told that there was a briefing document given to the West Germans several months ago. This document was not a specific or detailed one, simply a rough outline of what New Zealand has to offer - fishing, tourism, minerals, forestry, energy, etc. "Nothing that isn't public information."

We asked if it would be possible to see a copy of this briefing document. "Well, departmental publications are not usually released to the public." "But if there's nothing in it that isn't public information, why can't a member of the public look at it?"

After quite a bit more discussion, and being put to 'Hold' twice, it was agreed that a copy could be picked up next day at lunch time. However, next day at 12.15 we were greeted with a rather embarassed Trades & Industry employee. "You may find this strange, but the document is being re-typed." We nodded. Yes, indeed, that did seem strange. The very simple explanation was that it had been typed double-spaced for the Germans and it was being re-typed in single-spacing. And then there had been a few little errors in the first retyping and it was having one more re-typing to get it just right.

Late that afternoon when the document was finally ready, it turned out to be, as predicted, an innocent and superficial list of New Zealand's attractions - fishing, tourism, etc. A thorough and compact one, certainly, but very vague.

It seems to these writers distinctly unlikely that a group as high-powered as this German one is should come to litt-ole New Zealand on the strength of that document.. For this is no delegation of civil servants or investment officers of German firms. To give you some idea of their stature: Heading the delegation is Hans Gunther Sohl. He is the honorary president of the Federation of German Industries (BDI), and Chairman of the Board of an iron and steel firm which employs more people (130,000) than the total population of Dunedin. It has a consolidated turnover of 20 billion deutsch marks — approximately equal to New Zealand's entire gross national product. And he is just the head; there are 19 other members.

What Are they doing in New Zealand?

The delegation is here to explore the New Zealand economy for investment opportunities. They will produce a report of their findings and it will be on culated among the 39 national industrial sector organisations and thence to their 100,000 industrial outlets. This, according to Trade & Industry, may in turn encourage a more detailed round of offers and negotiations.

In the wider context, this visit can be seen as part of Germany's moves to increase their influence in Asia and the Pacific. New Zealand is of particular interest as an Antarctic treaty nation with an established Antartica programme (the emphasis of which has shifted recently toward mineral resources). We are also strategically placed for the harvesting of krill off Antartica. More than a year ago New Zealand signed an Agreement for Scientific and Technological Cooperation with the Federal Republic. The Germans have since indicated that fisheries, marine resources, and Antartica research are their areas of special interest.

Why be Concerned?

There are several aspects of this visit which are worrying. First, there's the secrecy. We are concerned that decisions may be made in secret. While our little confusion with Trade & Industry about the briefing document may not be suspicious in and of itself it increased the uneasy feeling that public involvement is less than welcome. Comalco is the classic case of the problems created by government secrecy. But even as recently as three months ago, our government bought a third-hand ammoniaurea plant and only afterwards let the public in on the secret. The public has a right to know about such major investments before they are signed.

Secondly, is the issue of political face-saving. We need to be wary of our government using German and other foreign investment to prop up bad decisions. Clutha and Maui gas may be examples of this. Both are cases where resources have been developed for "demands" which have not existed. Creating the demand later, is fraught with dangers, as these are in essence patch-up solutions which are often expensive and inefficient. It is simply not acceptable to attempt to justify the destructive Clutha scheme by encouraging electricity-intensive industies which may themselves be poor producers of jobs and net foreign exchange.

Finally, is the issue of exploitation of New Zealand's resources. In a mood of political expediency and an atmosphere of secrecy, we are definitely more vunerable to exploitive deals. Those few New Zealand industries like Comalco and the pulp mills which match the scale of German enterprises, at present employ very very few people for the amounts of energy, capital, and natural resources which they consume, and often pollute extensively. In fact, the five biggest energy consuming companies in New Zealand (three of which have substantial foreign investment) have a very bad record. They consumed two-thirds of our industrial electricity in 1974, and yet only provided 5.5% of the industrial output and only 3.7% of the industrial employment.

The Trade & Industry Department's briefing for the BDI mission notes the small scale of New Zealand operations and suggests the developments should be of an appropriate scale. However, in other sections of the briefing, where investment opportunities are outlined, it appears that large scale investment is in fact being encouraged: "The Government is currently examining a number of proposals for the establishment of new energy-intensive industries in New Zealand. Currently, the most attractive options appear to be the ferro alloys field ... although other major electricity users are being considered."

The briefing also notes the government's receptiveness to overseas investment - with more than 90% approval of applications for overseas companies taking over or establishing businesses in New Zealand in the seventies. A wide range of incentives and assistance measures to industrial development " are available to companies irrespective of ownership." Such investment is controlled by the Overseas Investment Commission, under powers delegated by the Minister of Finance.

"Very few hard and fast rules have been laid down for the evaluation of companies in New Zealand and every case is assessed on its merits. As a conseguence investment is welcome in almost all sectors." Those sectors where it is not so welcome are ownership of farm land, or additional investment in tanks, finance houses, or insurance companies. "Apart from these sectors reservations, overseas investment is virtually unrestricted up to a level of 24.9%. Beyond this percentage level, the Commission assesses proposals for acceptability according to an all-embracing set of criteria including effects on environment and employment........Approval may be given to a majority or even 100% foreign ownership."

It seems not unlikely that the German investors will be seeking majority ownership. After all, what purpose do the German's have in coming here? To help New Zealand out of its present economic difficulties so that it is less dependant on the whims of foreign nations — of course not. NZ is at present in a very weak economic situation threatened by the growing agriculture protectionism of most other countries, notably Germany in the EEC. The Germans are not here to discuss importing our agricultural produce - having helped get NZ to its knees, they are ready to expand.

Perhaps, in the short term, the economy may improve (tho' even this is not certain) and unemployment may drop. But, ultimately, the Germans will prosper - why else would they invest in NZ. if it wasn't to their ultimate advantage? Are we again to be on the receiving end, as Comalco has do effectively demonstrated?

What's to be Done?

It is important that the New Zealand government and the German delegation realize that the public insists on democracy. That is, we must let them both know without a doubt that we wish to be informed and want to have a say in any large scale decisions which will affect this country.

By Patricia Sarr & Keith Johnston