MPAIGN

or

FORE

NUMBER 71 NOVEMBER 1992

CONTENTS

PAGE

LE'mNG THE GATT OUT OF THE BAG .1

11IE SECRET SIDE OF FREE TRADE 3

GATT means foreign owned fishing .4

FREE lRADE IN FL.UX 5

GATT IS NOT THE ONLY GAME IN TOWN 7

BULK W A'IER EXPOR TS 9

WHO WILL BE THE NEW LORD OF THE SEA 7 1 0

FIAT LIJX(ton) 1 2

COMALCO'S FIRST CAB OFF THE RANK 1 5

ROOER SAYS SORRY 1 9

TOTAL COCK UP( ton) 2 1

BLUDGERS LAMENT 2 3

SIR HAMISH CAUGHT ROLLING IN THE HA Y 2 5

OPEN SKJES 26

SELLING 'UNIVERSITY' TO FOREIGN INVESTORS 27

ole Decisions

June, July 1992 decisions 30

MARUIA REPLIES .. , 38

Reviews

"PEACE PEOPLE" 3 9

"THE GULLIVER FILE" 4 1

"CANADA IN CRISIS" 4 2

"JOHN" CURNOW' 4 5

Obituary

PIGGY 45

YELI,OW PERIL 7 4 8

In the last issue of "Watchdog", we revealed that we had obtained a copy of the allegedly secret proposed agreement for concluding the Uruguay Round. We have been distributing copies of this document and informing other people how to get a copy from the Gatt office in Geneva.

Revelations about the strange secrecy surrounding the document in Aotearoa/N'Z surfaced in Wellington's "Evening Post" on September 9th. Extracts from the newspaper story follow.

"University Staff of NZ Association executive director, Rob Crozier, wanted details of the GATT draft agreement because of concerns about possible effects on university research."

He therefore wrote to the Ministry of External Relations and Trade (MERT).

"Although he was given some information and pieces from the report from MERT he was told the GATT document remained confidential and for 'Government use only".

"MERT asked Mr Crozier not to circulate the information outside the association."

"Not satisfied, Mr Crozier sent a fax to Geneva's equivalent of Government Print and within 10 working days received the 460-page document."

Mr Crozier was quoted as saying: "They got my fax on the Monday, actioned it on Friday and I got it the following Friday. That doesn't sound like somebody who has a secret to keep."

Obviously. this has made the government look very silly or worse!

According to a MERT spokesperson, MERT was still under instructions from the GATT secretariat that the document was confidential and that all other countries were respecting this confidentiality. He went on to say: "We would be concerned if it is now being passed to the general public, and I am sure a lot of countries would be."

This statement is rather bizarre to say the least. The government's intelligence is so inept it is not even aware that the GATT is freely distributing copies of the draft agreement. Then there is what can only be described as the stupid assumption that such a highly significant and controversial document would not be freely leaked when distributed to the over 100 countries taking part in the negotiations. The MERT spokesperson even categorically stated that: "All other countries are respecting the confidentiality."

Yet some non-government organizations apparently had access to the document as soon as it was released to GATT members in December 1991! There were almost immediate detailed analyses of its contents.

An American Notice of Warning

A powerful advertisement in "The New York Times", April 20, 1992, warned readers against the dangers of GATT and free trade agreements. It accused President Bush and GA TT of pushing the secret side of "free" trade, threatening to sabotage America's heal th, food safety and environmental laws.

The advert called the hidden GATT agenda a "sneak attack on democracy". To quote: "We hesitate to speak of 'conspiracy'. But if ever it applied, the time is now. If the Uruguay Round 'succeeds', we will truly face a New World Order beyond the control of any citizen democracy. Your jobs, your health, your safety and the environment will all be directly threatened. So will your democracy, and the democracy of other countries.

1

Beyond that, the expansion of GAIT represents a new blueprint and a new mechanism

the organization and control of resources and life on Earth, under the 'benevolent' guidance of bankers and multinational corporations."

In the advert, it was pointed out that the Dunkel draft agreement would create" a new global super-agency with extraordinary powers: The Multi-Lateral Trade Organization (MTO). This organization would require countries to "take all necessary steps to ensure conformity" to GATT. The Congressional Research Service confirms that.under MTO, our elected representatives 'would no longer have control.?'

As the advert said, "the only thing free about free trade is the freedom it gives the world's largest corporations to circumvent democracy and kill those 'pesky' laws that protect people and the planet. Free trade agreements are the instruments they use."

Other points emphasized in the advert were the aims of GATT to reduce health, food safety, labour and environment standards since these are seen as barriers to the free flow of trade. The advert pointed to the secret panel arrangement that settles trade disputes and the fact that food standards would be set by an agency heavily influenced by transnationals, A range of consumer, citizen action, trade watchdog, environmental and animal rights groups placed the advertisement. These included the Sierra Club, Rainforest Action Network, Friends of the Earth, and National Consumers League.

Some Light Shed on our Government's Secret Stance

The reasons why the NZ government is persisting in its strange stance of contrived secrecy become clearer in the light shone by this American non-government organization notice of warning.

A statement by the press secretary for Mr Philip Burdon, the Minister for Trade Negotiations, said that: "The fact that copies of the draft may now be freely available from other sources does not alter" the government's commitment to confidentiality on behalf of GATT. ("The Press". Septt 16, 1992). What a hoot! The "other sources" that the press secretary is referring to is GATT itselfl! Clearly, the government is either incompetent or indulging in Orwellian machiavelli sm. Can it imagine to manipulate the NZ public so easily?!

After all, the MERT spokesperson in the "Evening Post" report did say that MERT would be concerned if the "general public'twere getting access to this document. Such access, of course, would mean the practice of democracy and this would spoil the quiet behind-thescenes influence that big vested economic interests exercise on the determination of free trade agreements at the expense of the people. Leaked government information has already shown that democracy is being mocked.

Sorry, free traders, GAIT Watchdog is taking seriously the system's supposed commitment to democratic discussion, debate and decision-making. Sovereignty to the people!

GATT Watchdog

PO Box 1905 Otautahi/Christchurch

The right to A PROFIT

2

SECRET

Lindsay Davis

New Zealanders are purposely being kept in the dark on the GATT debate believes Christchurch-based GAIT Watchdog. "The real agenda of the Uruguay Round is a GAIT secret", said a GW spokesperson.

Referring to a set of proposal known as the "Dunkel draft", after its author GATT Director General, Arthur Dunkel, GW said that the government, under section 6 of the Official Information Act, is still refusing to release the 460 page document. Its refusal comes despite the fact that the draft agreement is now being made available by people who have obtained copies, either directly or indirectly, from GA TI' itself.

The group believes the NZ government has tried to suppress debate on the Dunkel draft because the document proposes to give the GATT some "real teeth".

"At present, GATT relies on a combination of good will and big power arm-twisting for adherence to its rules. The Dunkel draft would establish a powerful new Multilateral Trade Organization (MTO) to oversee the new system", said GW.

"The MTO would have the power to interfere in other countries' economies."

Article 8, in the section of the Dunkel draft establishing the MTO states the status of the MTO as: "(1) The MTO shall have legal personality.

(2) The MTO shall enjoy in the territory of each of the Members such legal capacity, privileges and immunities as may be necessary for the exercise of its functions.

(3) The representatives of the Members and the officials of the MTO shall enjoy such privileges and immunities as are necessary for the independent exercise of their functions in connection with the MTO",

GW said that the result would be democratic governments yielding national sovereignty on various economic policy matters to this "new GATf with teeth".

Recently Mexico sued the United States under existing GATT rules, charging that their Marine Mammal Protection Act, prohibiting the sale in the U.S. of tuna caught in "drift nets", was a "barrier to trade". Purse seine net fishing has been killing tens of

thou sounds of dolphins in the Easter Pacific.

The GA TI panel agreed with the Mexican case and President Bush eagerly asked Congress to follow GATT's order. The panel's ruling was also enthusiastically welcomed by South Korea and Japan, both accused of harmful drift net methods of fishing in the Indian and Pacific Oceans. Aotearoa/NZ, of course, has been at loggerheads with these nations over this particular fishing practice.

"The aim of the MTO will be to ensure that countries take an necessary steps to conform to GAIT and the GA TI" panel ruling on tuna demonstrates the damaging implications for sustainable development", said GW.

Under new panel rules in the revised GATT, panel decisions which currently require a consensus in favour of adoption, will be automatically adopted after 60 days unless there is consensus against them!

"Such GATT panels which pass judgements In secret would therefore have enormous power", said GW.

In summing up, GW said that it was not that one country gained or lost in this brand of free trade, but that people of every country would lose when they tried to protect standards of health and environment

3

GA TT means foreign owned fishing

Unlimited foreign ownership of fishing quotas is one of the implications of the settlement of the GATT negotiations proposed by its Director-General, Arthur Dunkel.

Current law prevents more than 25 percent foreign ownership of a company owning fishing quotas, unless an exemption is given by the Director-General of the Ministry of Agriculture and Fisheries.

However, the proposed GATT rules provide for the application of the doctrine of "National Treatment" in the case of all "Trade-related aspects of Investment Measures" (commonly known as TRIMs). "National Treatment" means that overseas interests should be treated no differently than "national" (local) interests. The rationale is that trade-related measures should not discriminate in a way that puts overseas interests at a disadvantage to local interests. This has far-reaching implications, but under the existing GATT, applies only to exports and imports - not to investment.

In the case of fishing, the argument under the proposed GATT rules could go like this. Aotearoa has set up a system of fishing quotas, essentially to conserve the fishing resource. Without a quota, a company may not fish for commercial purposes. So without quota, a company is at a disadvantage if it wishes to export fish. But overseas owned companies (those with 25 percent or more overseas shareholding) may not own quota. Hence the quota ownership restrictions result in export restrictions that are discriminatory against foreign companies and therefore breach the "N ational Treatment" provisions of the proposed TRIM rules.

We would have two years to change offending laws, to allow foreign ownership of fishing quotas, and remove any other provisions that discriminate in favour of local fishermen.

If we did not change, the home government of an overseas-owned company which considered itself discriminated against could take a case against Aotearoa to the Multilateral Trade Organisation established under another proposal in the GATT settlement. Trade and other retaliation could be used to force us to comply with the GATT rules if we persist.

That this is a real threat is emphasised by the experience of the Free Trade Agreement (FTA) between Canada and the U.S.A. This is widely seen as a model for the new provisions proposed for GATT.

"The first trade dispute to be adjudicated under the new legal framework involved a successful United States challenge to provisions in Canada's Fisheries Act, overturning legislation passed to conserve depleted stocks of herring and salmon in Pacific coastal waters."

Fixing the Rules, by Kevin Watkins,

publ. Catholic Institute for International Relations, 1992.

The provisions relating to TRIMs are in section N of the "Draft Final Act" of the Uruguay Round of the GATT trade negotiations (commonly known as the "Dunkel Report"). Article 2 is headed "National Treatment and Quantitative Restrictions", It states:

1. Without prejudice to other rights and obligations under the General Agreement, no contracting party shall apply any TRIM that is inconsistent with the provisions of Article III or Article XI of the General Agreement.

4

Article III is entitles "National treatment on internal taxation and regulation." Under it, parties to the GATT recognise that internal taxes, charges, laws and regulations should not be applied in a discriminatory way to protect domestic production.

Article XI is entitled "General elimination of quantitative restrictions". It prohibits any restrictions on exports (or imports) other than through duties, taxes or other charges, except in certain specified circumstances. Export restrictions temporarily applied to relieve critical shortages of foodstuffs or other essential products, and those "necessary to the application of standards or regulations for the classification, grading or marketing of commodities in international trade" are the only exceptions permitted for exports.

There are similar implications for industries other than the Fishing Industry: conservation of Canadian forestry and oil resources has also been hit by the FT A. It is possible that restrictions on foreign ownership of land, and the protection given to the Producer Boards, could be under challenge.

FREE TRADE IN FLUX

Dennis Small

In Bush's "New Order", trading tensions are high. The three great blocs - North America, Asia and Europe - are not only in rising competition with one another but also with a GATT-ruled global economy.

Bush "upped the ante" when he gave a $US 1.4 billion subsidies boost to help U.S. wheat exports. He was giving the boot as well to European farmers. While Australia indicated it would protest against the subsidies to GATT, Mr. Mayer, Canada's Wheat Minister, suggested that the U.S. should be specific in its targeting of subsidies and should take on Europe. Indeed, he suggested ganging up on Europe, saying that there might be some joint action that Australia, Argentina, the U.S. and Canada could take against the offending continent..

With Europe struggling in the midst of currency crises to try and consolidate unity, others perhaps see the opportunity ripe for rolling its trade barriers.

The APEC and NAFT A of the New Order

A lot has certainly been happening of late. The I5-member Asia-Pacific Economic Cooperation (APE C) forum took place in Bangkok in September with NZ Ministers McKinnon and Burdon attending. NZ actually signed there on 11 September a bilateral trade and investment agreement with the U.S. According to Mr. Burdon, the Minister for Trade Negotiations: "The text of the agreement we have reached sets out arrangements for consulting in this way on a regular basis and outlines an action agenda of items that require early attention." Parliament has to approve the agreement but this is seen as just a formality.

5

This U.S.-NZ agreement ambit

of the North America Free article Monthly

Review", no. 334, June/July 1992, explores the theme of "globalisation" versus regionalism the trade arena. Regional free trade zone initiatives are emerging and/or gathering momentum around the world.

Most recently, things have been moving quickly. With the confirmation of NAFTA in August by the three parties involved - the U.S .. , Canada and Mexico - the NZ government has shown its eagerness to press its interest in this zone. Prime Minister Bolger went on a lfl-day trip to America in late September/early October, visiting these three countries. While overseas, he was seen on television saying that if the Uruguay GATT Round failed, then NZ would look at joining NAFT A.

What independence Aoteraroa/NZ has managed to maintain would disappear with our absorption into this U.S.- dominated trade pact.

Surrender or Self-Reliance?

In an article in "NZ International Review", voU7, no.S, Sept/Oct. 1992, Associate Professor Ann Trotter of Otago University's Department of History argues that our country must adapt to APEC imperatives as part of our adjustment to the World Order.

In Trotter's view: "The end of the Uruguay Round, when it comes, will simply signal the beginning of another stage of world economic diplomacy. The problem for governments will be to manage this. Their powers and autonomy seem likely increasingly to be contested by globalised structures like the GATT, by regional groupings, some more open than others, and by the activities of transnational enterprises, These challenges to the manoeuvrability of governments seem likely to be felt acutely in the dynamic Asia-Pacific region of which New Zealand is parte'

So ther you have it, folks - Trotter's solution is to solve problems by "co-operation" i.e. yield sovereignty to the Transnational Corporations (TNCs), adust to their demands. APEC is seen as good because it espouses "open regionalism". With both Japan and the U.S. included as members, APEC covers two of the three big trade blocs. It is avowedly committed to open trading. However, whatever interpretations one can make of trading relations in the context of APEC, this regional "forum" can obviously serve as a vehicle for joint U.Sv-Japanese imperalistic designs.

Much the same repressive TNC free trade agenda is being pushed through both the GATT and U.S.-driven regional free trade zone agreements like NAFTA. So far as Aotearoa/NZ is concerned, the economic control we still have left is rapidly eroding even in our current situation. More than half the shares in NZ companies will be owned offshore by the end of the next year, the chairman of Brierley Investments Ltd., Mr. Bruce Hancox, told the government-backed foreign investment seminar held in April in Auckland. Hancox said that there are a large number of shares being sold in NZ's leading companies every day.

In reality, this means "we are going through a process of ownership of New Zealand companies from onshore to offshore". ("The Press", 9/4/92) The newspaper report noted that Mr. Hancox's comments appeared partly aimed at bolstering his company's share price, since he also contended NZ shares were cheap and therefore an attractive buy.

So Aotearoa/NZ is up for sale and the government is an enthusiastic broker!

Choosing Freedom over

Trade

In the competing trade winds we can only maintain some measure of independence by choosing a more self-reliant development policy. Brierley's Mr. Hancox put the challenge

like this: "But I think the choice of wishing ourselves to be proud owners and

poor, or we have to bring the wealth of others in to share it to offer us a reasonable standard of living."

For this writer, the choice is rather that between being a victim of exploitation by a sell-out comprador elite and their foreign sponsors, or opting for the struggle for genuinely sustainable and egalitarian development. The latter choice is certainly not easy but for all sorts of reasons it is the one to make.

It is indeed significant how establishment commentators and academia so easily accept the new world business order, yet another demonstration of the Marxist thesis as to how economic self-interest determines cultural expression People of a privileged stratum find it convenient to adapt to the New Order's requirements.

There are obviously very real issues for urgent democratic debate in the situation facing Aotearoa/NZ in relation to international forces. Accommodation of some sorts has to regularly happen with trading partners. The terms, however, of such accommodation are crucial. Unfortunately, governments (Labour and National), with the collaboration of the TNC-owned or influenced mainstream media, have suppressed open public discussion of the GATT negotiations. An informed context for critical scrutiny of the looming NAFf A links is consequently lacking. Yet the destiny of the peoples of this country is now hanging in the balance.

It is therefore over to movements like the Campaign for Peoples' Sovereignty to make progress on empowering people for the future, on stimulating wider actions in order for us to gain more control over the conditions of lour lives. In the long term, this also means helping lay the base for viable economic alternatives that meet peoples' basic needs, and more - beyond into the 21st century.

GATT IS NOT THE ONLY GAME IN TOWN

"Watchdog" has devoted increasing attention to GATT in recent issues, focussing on the implications for the New Zealand people if the stalled Uruguay Round is ever concluded.

But we need to be aware that there is more going on than just GATT.

The "Press" (12/9/92) ran a story headed "NZ-US trade accord marks breakthrough". The Minister for Trade Negotiations, Phillip Burdon, signed the New Zealand- United States Trade and Investment Framework Agreement. Details are still to be worked out, but it will cover the two "irritants" in current NZ-US trade relations, namely US anti-dumping penalties on NZ kiwifruit exporters, and US restraints on NZ beef exports.

Foreign Minister, Don McKinnon, proclaimed that the document is" a real sign that relations between the United States and New Zealand are warming" .

Leaving aside that question, it's useful to consider where the signing took place.

At the Asian Pacific Economic Cooperation conference in Bangkok. APEC was one of the alphabet soup of regional trade organisations covered in "Watchdog" 69 ("Intensifying Economic Exploitation", by David Small). It's worth quoting the relevant passages again.

"The economic forces which are pressing the US and Japan together are considerably stronger than the tensions which divide them ... Since the APEC forum was first convened, in November 1989, it has become increasingly clear that it serves the interests of the US and Japan more than those of the economically weaker member states of the region. APEC was founded on the principle of opposing protectionist trade blocs and promoting a liberalisation of global trading practices. The US and Japan, after earlier feigning a lack of enthusiasm for APEC, now appeal to it as an already established structure in order to undermine initiatives for other more protectionist fora of regional economic cooperation. In particular, they were disturbed by the December 1990 proposal of Prime Minister

7

Mahathir, of Malaysia, a

Economic Grouping (EAEG),

"The US opposes hint

economic agreements to be made the politico-eeonomic infuenee of the US base from which they can continue to shape going concern, all proposed alternatives are have even been suggestions that, despite the APEC is likely to broaden its' focus to include

into a Europe style Conference on Security APEC's November 1991 meeting in Seoul, US formal six point agenda was only the tip of the to be discussed .... "

It's important to realise that while GATT APEC is up and running, and New Zealand is actively

And the other regional trading pact with major for NZ is the North

American Free Trade Agreement (NAFT A), between and Mexico. It

will create the world's biggest trading bloc, with a 360 million. In a

"Press" story (18/9/92) headed "Bolger to promote's s it was reported that

the PM visited both Canada and Mexico. in September, to ;r,,,,,~.,,",,r. NZ's interest in NAFT A. This was done during his trip to New to case for a UN Security Council seat.

The NZ Institute of Policy Studies visiting by Ministry of External Relations and Trade staff, has implications of NAFT A. The fear is that a failed exposed to the crossfire of a trade war between the Europe, North America, and Japan. So Holmes NAFTA, and reorienting our geography to the North getting NZ back into ANZUS by offering us already been conjectured by the reactionary Heritage Small examines the various implications of GAlT

32, August 1992, and "Monthly Review" 334,

But if we suck up to the Yanks re NAFTA, we out in no uncertain terms earlier this year by Professor working for the NZ Institute of Economic Research, Foundation. He warned that if Australia and NZ to the exclusion of Asia, it "could lead to the recommended an Asia-Pacific regional bloc with as failing that, a CER- NAFT A-Japan bloc. (Professor Jl..U<W1U the need for foreign investment incentives in NZ were

So we're damned if we do, and damned if we be aware that GATT is not the only baffling already in other regional trade blocs, are looking to

major economic and political implications for us,

all mean the consolidation of the power country; the "globalisation" of the regional and jobs of ordinary people.

a possibility at present,

Holmes, assisted on a study of the would leave NZ blocs of world tradepossibility of joining

Coincidentally or not, trade agreement has in the US. (Dennis "Peace Researcher"

J aps. was poin ted Ebashi, who was here New Zealand-Japan

by join NAFTA.

"3""" .... '''' region ". He as possible, or

publicised views on

"Watchdog" 70).

Zealanders need to on the horizon. We're and they all have GATT- they elite in each on living standards

BULK WATER EXPORTS THREATEN ASPIRING NATIONAL PARK AND SOUTH WEST WORLD HERITAGE AREA

Mining and milling have long plundered West Coast forests with New Zealand companies helped by foreign backers. There's a new twist to the old tale of rip and bust exploitation and extraction. Rivers and streams in our national parks will be up for grabs if Conservation Minister, Denis Marshall consents to a proposal to dam a stream in Mt Aspiring National Park and pipe much of its flow to fill up waiting supertankers with bulk water to export.

A Westport based company, Okuru Enterprises Ltd has gained the land use consent, water and coastal permits it needs from the development minded West Coast local authorities to dam Tuning Fork Creek, a tributary of the Arawata River, and carve a swathe through forest in the national park and the proposed Burmeister Ecological Area to lay a pipeline to carry the water the 15 krns or more to the coast at Neils Beach. It is now waiting on the Minister of Conservation decision on licence and easements to use national park and conservation land.

At Neils Beach the water would be stored in four 30,000 cubic metre concrete reservoirs before being pumped out to a floating mooring buoy off Jackson Bay and into a waiting supertanker. An average of two super tankers a week are expected to tie up at the buoy in what is now a quiet and beautiful anchorage for local fishing boats. At 110,000 tonnes each the supertankers will be larger than any other vessels commonly used in New Zealand waters.

The mostly West Coast shareholders in Okuru Enterprises Ltd are unlikely to be able to raise the estimated $50 million required for the venture. If it proceeds substantial foreign capital is likely be involved. We will see public conservation land and a New Zealand national park compromised to benefit foreign investors in the same way as Southland beech forests are decimated to profit Japanese multinationals. The project is only expected to generate eight to ten full-time jobs.

Apart from the usual monitoring, enforcement and other administrative costs associated with water permits the company will get the water for free. The Ministry of Commerce does not yet have policies on water export so no royalty is proposed. The company may pay a licence fee to DoC but details have not been made public.

continued p24 .. ,

9

WILL

Attention has been justifiably significance the

Government underwriting the Maori bid to Sealord

Products, in a 50/50 partnership with Treaty

issues involved, there is the whole question of ownership of NZ fishing

resources. Sealord is the country's biggest company, owning 7 vessels and

operating 2 processing plants. The Nelson plant is the largest in Australasia. It employs 1000 people and holds a fishing quota worth $144 It controls about 40% of the country's fishing industry, holding about 25% of the quota and % of tonnage.

Sealord is wholly owned by Carter Holt Harvey, and as such, became a foreignowned company, under the terms of the 1983 Fisheries Act, in November 1991. This was detailed in the Overseas Investment Commission decisions for that month, analysed in "Watchdog" 69. "One of the largest companaes in Aotearoa, and one of the largest forest owners and operators, it is now technically an overseas-controlled company (owned more than 25% overseas), This has come about through Brierleys Investments selling its 32 % shareholding in CHH to a joint venture it owns 50/S0 with the US International Paper Company for $454.3 million ..... " The Carter brothers, who headed CHH, resigned, and International Paper installed its' own David Oskin as CEO. CHH had got into strife, and was trying to reduce its' debt by selling assets." ... This has included the sale of some of its' Chilean assets. International Paper is the world's largest pulp, paper, packaging and forest products group with subsidiaries in 24 countries and 2.6m hectares of forest in the US".

(The Chilean restructuring is proceeding apace. CHH was one of the first NZ corporations to invest there, under the Pinochet military dictatorship. According to the "Press", [23/9/92],CHH will take a far more active approach to its 30% investment in the Chilean forestry and petroleum conglomerate, Copee. "Meanwhile, CUU was reducing its exposure to its Chilean fishing interests in a similar policy to that seen in New Zealand with the sale of Sealord Products." There are 2 joint ventures, each with a 47% holding. One has already been reduced to 30%).

"Brierleys role as the joint venture partner with Maori interests win have its own special focus. Brierley Investments has a substantial interest in Carter Holt Harvey, owning 16% in a joint venture with the United States-based International Paper. This gives it effective control of Carter Holt Harvey, whose chairman, Mr Selwyn Cushing, is also a director of Brierley, It stands to gain strength not just from owning half of Sealord but also from the impact on Carter Holt Harvey of being able to quit Sealord ... " ("Press", 29/8/92).

The best laid plans of local and international Big Business hit a snag earlier this year, when CHH announced that it intended to sell Sealord by public float, and applied to the Director General of Agriculture and Fisheries (notorious hatchetman Russ Ballard) for an exemption to the Fisheries allowing it to become 40% foreign owned. If such an exemption had not been granted, CHH could have forfeit its' quota to the Crown on the grounds of being more than 25% foreign owned. Needless to say, Dr Ballard granted the exemption, with conditions eg that no single foreign investor who is directly involved in the fishing industry can own more than 25% of Sealord.

Whereupon, Timaru-based Southern Ocean Trawlers went to court applying for a judicial review. They lost in the High Court, but announcing an appeal, SOT's director, Murray Broomhall, said: "The Higb Court's stance was unjust and served to cancel the protection given by a provision of the Fisheries Act 1983 aimed at limiting foreign ownership of fish resources. 'This effectively shuts out the only protection New Zealand has for the ownership of fishing quota, We believe it is a dear signal that foreign investment in New Zealand fishing is

"In fact, he claimed, 96% of Sealord could end in overseas under

the terms for the float laid down by (Dr Ballard) e e e e Despite Ballard's 40% foreign ownership limit, Ii institutional investors like Australian-owned Society and

National Mutual would not have to treated as

said that with 56% of Carter Holt now

lO

reasonable to assume a similar level IOf investment by a Sealord-

on tQP of the 40% more narrowly defined foreign ownership,

19 The result, he claimed, mean more going for processing outside

New Zealand and a loss of jobs and in country.;" C'Press", 7/8/92),

The Court of Appeal struck out SOT's case, so the way was cleared for the much delayed float. All the familiar sharks moved in to profit handsomely, Merchant banker, Fay Richwhite, was retained as lead manager for the sale, with Buttle Wilson and CS First Boston joining as co-managers. It is not guaranteed that the Government-backed Maori bid will succeed, Another NZ/foreign consortium, Ashlar Corporation, is also bidding. It brings together NZ's Polar Products, headed by former Fletcher Fishing executive Eric Henry, the Westpac-owned sharebroking firm Ord Minnett and Danish fishing company Royal Greenland. Intriguingly, the latter is an SOE operated for the benefit of Greenland's indigenous Inuit people. "We're not a front for a foreign takeover or anything like that", said Mr Henry C'Press", 25/9/92) Assuming, however, that the Maori Fisheries Commission is successful, then there is evidence that, once the Government has paid its' promised $150 million (late 1994), the Commission intends to add its' own funds and buyout Brierleys' 50% share IV •••• although it appears BIL did not enter the deal on this understanding and is not simply 'warehousing' the Sealord shares for the Commission ... " ("Pre ss ",24/9/92).

And the question arises, who owns Brierleys, that quintessentially NZ success story of asset stripping, speculation, and greed? WeU, not Sir Ron. He's only got 1.55% of the shares that bear his name. According to the most recent information, the following foreign owned or dominated institutions are the biggest shareholders in Brierleys. The ANZ, National Nominees Ltd (owned by Lloyds Bankj.Franklin Resources (US), Templeton Galbraith & Hansberger (Bahamas) National Mutual of Australia, AMP, the National Provident Fund (owned by Tower Corp), the BNZ Nominees, Westpac, and Barclays Bank Between them these foreign banks and insurance companies, etc, own anything up to 30% of Brierleys. So it can no longer be regarded as a New Zealand owned company.

As for the Maoris, well good luck to them. There's no reason why Maori capitalists shouldn't be able to compete with the rest of them. And be subject to exactly the same risks, criticism, and opprobrium as the rest of them. There are definitely risks in the Sealord deal, It's good news if it does fulfill all unresolved Treaty fishing claims. But it will be decidedly bad news if the venture sinks (no pun intended) or gets bought out by the fishing multinationals. If you're going to swim with sharks, you've got to prepared to get bitten. Already there are suggestions that the Commission will have to borrow to help the deal, and that Maoridom is unwilling to incur new debt to secure Sealord.

Tipene O'Regan has been instrumental in leading first his own tribe, the Ngai Tahu, and now the broader tangata whenua, into large scale Maori capitalism.t Some of his ambitious schemes have already got offside with the environmentalists eg an $80 million proposal to put a monorail through South Westland's Greenstone Valley). He is not alone in this. For example, the Maori Development Corporation has recently indirectly taken big stakes in Farmers Trading Company and an Australian discount chain, Venture. The Australasian joint venture contains Deka, FTC, James Smith, and Toy Warehouse stores. Net assets will be about $150 million. "The MDC has been diversifying Maori investment from land to ventures such as meat, horticulture, and fishing companies. It has a large stake in U'-Bix Business Machines ... " ("Press", 4/9/92). The golden rule of capitalism is that a few profit very nicely from the sweat of the rest. We can but hope that the Maori people haven't been sold out by their leaders (and not for the first time) for a mess of pottage.

FIAT LUX(ton)

And There No Light

While the country spent the winter engrossed the saga of Electricorp's

spectacular success in making a $400 million profit, and catastrophic failure to actually deliver its' product, something much more sinister was whistling down the wires from Wellington. No, not Comalco's continous attempts to buy Manapouri for a song, with Electricorp's connivance. That remains on the backburner.

This process started in 1990 when the unlamented Labour government demonstrated again its' commitment to democracy by getting rid of elected power boards and replacing them with "commercially minded" boards of directors. The Tory Rogernauts have been continuing along the same line ever since. This has come to a head with the Energy Companies Act 1992, passed with minimal Parliamentary debate (and no opposition from Labour) during the so-called "power crisis".

This requires the country's 48 power authorities to be corporatised by April 1, 1993, and to have presented establishment plans for that, to the Minister of Energy, John Luxton, by the end of this year. Part of the process involves legally establishing ownership for these authorities. 12 of them, such as Christchurch's Southpower, are owned by local authorities. The rest are deemed to be managed by interim bodies on behalf of the power consumers, and the Act aims to impose an ownership structure on them.

Luxton has been pushing very hard for corporatisation to rapidly become privatisation, and in many cases, that will mean "foreignisation". This is not mere hypothetical speculation- the first most people knew about this Act, and its' implications for everybody, was when the Waikato Electricity Authority announced it was selling 49% of its' shares to the US electricity giant, Utilicorp ("Press", 1/8/92). This was presented as a fait accompli, and legally justified on the grounds that the WEA is already a company under the Companies Act, and thus has the power to issue new shares. The Kansas-based energy multinational gloated that it only paid a $9.60 deposit to buy its' stake. That represented lc for each of the 960 shares it was buying, in a deal worth $74.6 million ("Press",10/9/92).

The Auckland Electric Power Board (the country's biggest) proposes selling 90% of its assets- which have a book value of $400 million and a likely market value of $600 million- to a mixture of foreign and local investors. The 234,000 customers will lose control of the board and be restricted to the 10% of shares vested in a community trust.

At this stage it appeared that multinationals were queueing up to take over NZ energy authorities ripe for the plucking. The "Press" (2817192) headlined:" UK interest in power claimed". It reported that Norweb, one of 12 British electricity distribution companies privatised in 1990, was holding secret talks with Waitemata Electricity, NZ's third largest power authority. "American, British, Asian and Chilean energy industry representatives have been visiting New Zealand to look at opportunities since power boards and municipal electricity departments were deregulated after decades of protection. The 48 authorities, conservatively valued at $2.5b, are rosy targets for foreign investors with the capital? technical and managerial skins to remodel the industry along purely commercial lines, Norweb has chosen to deal with Waitemata because it believes that the power board win be one of the major players in New Zealand after deregulation .. ."

Waitemata, at that stage, was planning to issue each of its' consumers with tradeable shares worth at least $500. It looks deceptively attractive in theory, but the reality is that a lot of "shareholders" would sell theirs, because they needed the cash, and ownership would rapidly pass into the hands of NZ and international big business. (And the law had to be amended to cover the unforeseen problem of Inland Revenue levying gift duty on any shares given to consumers).

What Luxton and the Tory Rogernauts had not counted on was the public backlash to this whole scenario. Having trampled all over central government services, and flogged off things like Telecom, the New Right/Old Wrong ideologues decided to do the same to local government and basic services. But people have had a gutsfull, They picked the wrong winter to attempt this. Most people can survive without a phone,

living an zone is a

at that),

Nationwide, movements have been u"'rn~'11

has been most noticeable in Auckland, where October local body elections. And to a large extent, one example. Waitemata, which was all gung ho to

proposed model) is now having:" Second thoughts on ,

looking at setting up as a community trust, which seems to be the most of most power authorities. Bolger has had to overrule his hardline

then, Mr Bolger had suggested he did not want the to

they did not need to go private immediately but a or

four years". Prior to that, Waitemata had announced that it would set a 20% limit on all individual or company shareholding. Chairman Barry Brill (remember him from the Muldoon government") said " ... Waitemata's board and trustees were 'unashamedly parochial and patriotic', and one of the main concerns was to ensure the new company kept its' longstanding relationship with local There has been a lot of opposition to Waitemata's intention to privatise, and Mr Britl said the intention was to establish a public company that would controlled by local people ... tf ("Press", 31/8/92).

Indeed, Bolger has gone further since then." We are not pushing anybody to

privatise, If various electrical supply authorities that a ownership

structure is the best for their own particular community, that's by me"

(T'ress'', 15/9/92)

Remarkable how politicians can interpret the song of the wind singing in the wires. One thing this Act has led to is a quite often bizarre realignment of disparate power authorities. Waitemata and Valley Power (Thames Valley), have merged into the country's second biggest power supplier; another example is the possible merger of the Bay of Plenty, Rotorua, Taupo, and Tauranga boards.

What sort of ownership is the burning question. Luxton increasingly found

himself out on a limb with his insistence on limited companies with tradeable shares. His fellow Tories, from Bolger down, have distanced themselves from that "However, enthusiasm for privatisation, stemming mainly Luxton, his officials and the more progressive (sic) power suppliers has not been matched by astute political management. As a result, the reforms have burst upon the public in

a messy climate of uncertainty, suspicion, and minimal This has

played into the hands of the conservatism and sell-interest boards

of trustees, stacked as they are with old guard Natiunal senior

Cabinet Ministers and many National backbenchers have rattled in recent

weeks .... Continued ownership by community trusts is therefore as the

most likely immediate outcome for most power boards MN' been

forced to accept more evolutionary change than he dearly strongly

favouring creation of 'tradeable shares' power boards, he on the

National Party manifesto pledge allowing communities 2/9/92).

The Power Boards' Corporatisation Group, representing from the Bay

of Islands to Waitaki, is promoting a 100% Ii community ownership system to thwart overseas or Boca! authority control of electricity supply". ("Press", 22/8/92). In the

same report, Christchurch Mayor, Vicki Buck, retorted: "The council consistently

rejected the community trust. model fin terms because of

accountability issues. For example, who elects is it

accountable'L.We've opposed the of

there is a better way and that is community """"10/1"",,",,

Power For Our Future, the Wellington-based energy the successful 1991 Save Manapouri Campaign h as endorsed

pointed out that as the Act requires the boards to publicly for

ownership options:" For first time in the Government's

YOU can stop . Regardless whether it is

community trusts that end up owning the

that ownership should not offshore.

ran a front page lead overseas" (1/8/92). This was promptly flatlyr''Power shares 'win not be sold' " (3/8/92). II

of the Christchurch City Council's trading "Southpower is not for sale. Overseas investors electricity undertaking will be wasting their assets is a key issue and privatisation of Southpower over my dead body' .... At least two overseas groups have visited Southpower recently as part of their canvassing of New Zealand power suppliers for possible joint

ventures .... 'They would have been politely received, but all', sand Mr Peter

Lawson, chairman of the Central Canterbury Electric and deputy

chairman of the South power board .... "

And, on August 12, the "Press" reported:" Pro-privatlsation elements in the industry have been watching with concern in recent weeks as the power board ownership issue has deteriorated, particularly where it fast becoming a rallying point for Alliance candidates in the October locat body

elections. Hopes among some senior councillors that establishment

plan could leave the door open to private investors have suffered a

similar setback in recent weeks .. "

The "Press" pronounced its' editorial opinion 011 August 11 (" Prlvatising power")." .... 'Competition' is the battle cry and profit is the god, but few customers have been convinced that the reforms proposed win genuinely end monopolies and provide true competition. Most appear to be thoroughly flummoxed by what is going on and cannot see any good reason to change their local power boards or municipal electricity authorities into corporations in first place. In the vernacular, 'If it ain't broke, why fix it?', Without true competition, profits can be extracted only by penalising the consumers and most consumers fear that higher charges win be the only consequence of reform as far as they are

concerned. The fact remains that the boards municipal electricity

departments are cooperatives, founded and owned communities they

serve .... Spokesmen (for Southpower) have made it they intend that the

community should continue to own South power. Whether their intentions prevail

remain to be seen; more important win be whether a that stops short of

privatisation can get the approval of the Minister. It has customary that

local preferences count for little whenever Wemngton wants to meddle in local government Ii ,

The situation was becoming desperate for the ideologues. Journalist Pattrick Smellie already features in this issue (see" Roger Sorry"). In the "Press" of September 2, he excelled himself with an editorial page feature headed: " Power privatisation-desirable, inevitable". Some gems from the appropriately named

Smellie- questioning whether privatisation is "the right, allewlng people to

own their own assets". Of Southpower's decision, he wrote: Ii risks South power

becoming one of the long term losers from the if it becomes hamstrung by

a lack of capital or flexibility in the face of competition. boards win not be so

unwise ... " And he concluded: "It will not happen as as Luxton may

have wanted. But the long overdue reform of the supply sector is finally

about to kick off, and the destination is eventual private ownership". Oh, is it? That

remains to be seen. (And incidentally, the above "Press" of boards'

"conservatism and self interest" and" being types", comes from his feature). Christchurch councillor Srnellie's polemic, in a letter to the "Press" (17/9/92)." will benefit but he does not say how. Public power assets that are owned by the public. It is not eager to feast on them ... It makes no sense for the the Japanese or Americans" .

The question arises: Who stands to benefit and privatisation? The "Star"(919!92) put it succinctly: likely to be the losers .. .in reality? the only consumers interested in poaching are medium to large

consumers huge foreign vultures are

Christchurch sell to

supply deregulation Il""~'·">'Rjj consumers are

win be lose

the profit on write a letter

apologising stepping on their meter', one

Southpower executive said. Supply the power price for

domestic users, who they will keep without so it can lower the prices

charged to businesses threatening to buy power another authority ... Since the

announcement of the privatisatlon and deregulation, South power has instituted a gradual increase in domestic charges of 1 % a with the aim to similarly reduce business charges, which cross subsidise domestic consumers at the moment. The net effect of the change is expected to be a 17 % reduction in electricity costs for business consumers" .

It's worth summarising the key points of Power For Our Future's paper on the subject: Almost ali New Zealanders want to retain public control of electricity supply; Privatisation of local supply authorities would mean higher prices for most consumers; Prlvatisatlon would not protect the consumer from being 'milked' to meet spurious objectives; Encouragement of energy efficiency and small scale renewable energy needs to be a primary objective of electricity companies; Establishment plans must specify permanent public ownership; There is a tragic confusion between profit motives, commercialism, and the market; Energy efficiency in the (privatised) UK has so far failed: Light regulation may squeeze reliability, not prices; The private sector does not necessarily manage assets more efficiently than the public sector.

Conclusion: Prtvatisation would mean higher power prices and loss of money to the New Zealand economy.

Luxton and co are trying very hard to pull the plug, tum off the lights, cut off the power, or any other electrical metaphor you like, on publicly owned electricity supply in this country. Their plan is to quickly and quietly privatise it, for the benefit of local and international big business. The encouraging thing is that they are being so vigorously resisted. This battle is too important to lose,

But Wait~ We Love Multinationals, Apparently

Under the unsurprising heading :"Property chief backs sales to foreign interests", the "Press" (1019192) reported:" Selling buildings to foreign interests now provokes less flak from New Zealanders than previously, says the chairman of Jones Lang WooUon, Mr John Cameron. The company recently sold New Zealand's largest office building, Central Park on Auckland's Great South Road, to Singapore based Hotels International, for $38 minion "Three years ago the sale would have raised protests about selling the family silver, but the issue is no longer as contentious as it was, Mr Cameron said the winter issue of the 'JLW Property Market Review'. Property was just, one global investment option and New Zealanders should be pleased the local market was now regarded as sophisticated enough to warrant consideration on an international scale.

II 'Yes, a percentage income stream of the country,' Mr

Cameron said e e e e e 'Foreign' ownership in central areas of Auckland and Wellington had been historically high if properties owned by British and Australian insurance institutions and banking groups were included, said Mr Cameron." 'Some of these parties have already divested properties to Asian buyers, so control has effectively passed from one foreign buyer to another' . ., II The view must be great from those window glass office towers. It enables you to ignore everything going on around you.

COMALCO'S FIRST CAB OFF THE RANK

Lucky Bananabenders Get Nod

"Watchdog" 70 reported in detail Comalco's machinations, involving it playing off New Zealand, Tasmania, Queensland, and Chile. When its' board met at the Bluff

smelter, in first such meeting since 1984), CEO Nick Stump told the local

media that it onl afford to upgrade one smelter at a time, and would make its'

choice six suggested several possible options: construction of the

fourth Tiwai potline, with extra power needed from Electricorp (ie armtwisting to secure bargain ownership of privatisation of the Gladstone

"",""<"'.'J'" HS is

we have no further

indeed the latest Manapouri negotiations

People Who Brought You The Power ).

public under the umbrella of "commercial

Comalco has picked it's first

forfend! grovelling local media reported

IV Cornalco Ltd in Australia announced the

sen the Gladstone power station which

This in turn win allow Island

biggest smelters in the Western world.

tonnes of metal annually, Boyne is

smelter's capacity, However, construction another 200,000 tonnes annually, the could be started in the second half of 1995, and ;t>UH""·"", expansion win have a capital cost of around $900 being sold for approximately $1 billion, although '-.~'"."',."-'"-' than a player in a consortium of buyers. That together, and the deal win not go year ," ("Press", 13/8/92).

This straightforward "Press" report was Comatco". "Electricity contract negotiations IIllDl""",',p"" Electricorp need to be concluded as quickly as Queensland smelter looks set for huge expansion, Mr Kerry Mcljonald, said yesterday. Swift conctusmn

vital if the New Zealand arm of' the enough up the queue for the $300 minion

smelter near Bluff ... .It now most

negotiation with Electrlcorp, since more on the smelter here without resolving power

That was followed by a further "Press" (

'difficult' ", It quoted Nick Stump as II

Polnt.i.wltl very ditficutt, .. Comalco

$NZ2. billion by buying the

expanding the nearby Boyne smeUer, Mr

use wound needed for the ,'",rn."o

New Zealand was seen now more as an

than a full potline expansion, said.

" ' We've had some power issues

issues power generation

has been a very unusual drought, but I

does indicate that, an a major

very difficult'.

Ii Comalco win Ben Bay, Tasmanian plants were

development be sequential.

aluminium [0 justify 'going even

And how the new look,

Opposition finance resemblance to

no more to be put end of next

may Rose kind of investments necessary for New

''1'U':''''''''''H' C'Press", 14/8/92).

Every week we receive "Vanguard", the paper of the Communist Party of Australia Marxist/Leninist It regularly runs material from "Watchdog", and we find it consistently informative. It reported this story headed" Gladstone power station sold to British giant" (26/8/92)." .... Comalco has dangled promises of huge expansion in plants at Gladstone, Bell Bay in Tasmania and Tiwai Point dependent on the company getting control of local power stations at Gladstone and Manapourt and getting watertight contracts for cheap power from Tasmania's Hydro Electricity Commission. Only the Queensland government has given in to Comalco's demands at the moment .. e e

"There are two related aluminium plants in Gladstone: the Boyne Island smelter and the Queensland Alumina Ltd refinery. The refinery processes bauxite ore into alumina. The smelter processes the alumina to aluminium. The Boyne Island smelter employs about 1000 workers. Two potlines operate 24 hours a day, putting out 200,000 tonnes of aluminium a year. It was set up in 1982 with modern technology and work practices. The workers have been under attack for the last year since Comalco sacked 52 workers and 26 staff. Many of the workers had suffered from an industrial affliction brought on by fumes: potline asthma. At the same time, Comalco tried to force on the remaining workers new work methods, "multiskilling' and increased workloads. It has been resisted with limited success. For this, the workers who produce the hundreds of millions in Comalco profits have been getting a mere $A400 a week at most.

"The refinery next door is jointly owned by Comalco, Alcan of Canada, Pechiney of France and Kaiser Aluminium of the US. The 1500 workers at the refinery produce 2 minion tonnes of alumina a year in what was the world's biggest plant in the 1980s. Comalco has proposed that it. win double the output of aluminium from the smelter by building new potlines at a cost of $A880 million. Boyne Island would become, by a long way the world's biggest aluminium smelter, producing a huge part of the world aluminium output. Australia is already the world's largest aluminium producer. This would place Comalco in a position to gain greater dominance over the world's aluminium industry.

"Control of the Gladstone power station gives Comalco leverage over its' partners in the refinery which use it to supply some of their smelters both in Australia and other parts of the world. The sellout by Goss (the Queensland Labor Premier-Ed) puts more pressure on the Tasmanian and NZ governments to also cave in. Sale of the power station poses a direct threat to continuation of the whole Ben Bay operation in Tasmania. Comalco has said that it. would have to spend $A680 million to modernise and increase the output of that smelter. The 126,000 tonnes produced there would be easily replaced, and more, with the planned expansion in Queensland.

"eRA (the owner of Comalco and itself owned by British behemoth, RTZ- Ed) has enormous clout flowing from its' ownership of widespread and valuable resources and processing plants as well as its' financial power, It is wielding this to dictate policies to these governments. It owns massive reserves of iron ore at Mount Tom Price and Paraburdoo in the Hamersley ranges of WA's Pilbara, copper on Bougainville, though the mine there is now dosed, extensive coal mines through NSW and Queensland, including some in the districts behind Gladstone, lead and zinc mines at Broken Hill, the world's largest lead smelter at Port Pirie and smelters in NSW as well as lots of other processing and manufacturing plants.

" plays one puny State off against another as well as one country off against. another. Over the years it has made profits totalling thousands of minions of dollars, It is extending its' empire and the dominance its' empire can exert over governments. this enormous empire is built on the backs of tens of thousands of workers. Even the Gladstone outpost operates on the exploitation of 2500 workers in the city itself and hundreds of coal miners in the hinterland. At every outpost there are hundreds if not thousands of these workers. They mine every

ounce ore, process every ounce of metal and fabricate every product ... ,.The

owners are a mere handful of British billionaire parasites, They are

allied to a tiny class of crawlers here: the directors life offices and banks, some big local capitalists governments and the top public service bureaucracy paid servility. They may number a few thousand in all., ..... "

(The full extent of the RTZ/CRA/Comalco empire is detailed in Roger Moody's "Plunder", or in his more recent II Gulliver File". See review this issue. Contact CAFCA for details of both books).

We should shed no tears that Comalco has wangled itself a better deal in Queensland than what was offered here (and note how the sum of money involved in the putative Tiwai potline expansion always seems to vary). It's a particularly predatory multinational, and has been a disaster wherever it's gone. Indeed it would be no loss if it relocated in toto to Queensland. They are welcome to it

like the those rule to wen

"Multinational Monitor" Update

"Watchdog" 70 reprinted Murray Horton's article, "Comalco's Power Play", from the excellent US monthly magazine, "Multinational Monitor" (June 1992). It was written several months before publication.

The September issue carries a letter (indeed it's the only letter in that issue) from Murray, updating the Comalco situation in relation to the "power crisis" this winter. "Multinational Monitor" believes in giving corporations a chance to respond, and as they couldn't find Comalco's address, they asked us to forward a copy of the June article. We had an address for NZ Aluminium Smelter Ltd (they ordered "Plunder", in 1991), so we did so. We'll keep you posted.

Murray's letter also noted that Roger Moody's "Plunder" had been reviewed in the June issue (along with his "Gulliver File"), and asked it to be noted that CAFCA is co-publisher.

His letter concluded by commenting on another NZ article in that June issue.

"In relation to Robert Reid's article (,Crushing Labor in New Zealand'), it is worth pointing out that Comalco was one of the very first major employers to take advantage of the Employment Contracts Act, and put its' workers on deunionised contracts.

"Reid's article had one major omission. The union movement was very slow to act against the New Right revolution enacted under the 1984~90 Labour government, because the NZ Labour Party arose out of the trade unions. There was always a dose working relationship between the two; unions funded the party; affiliated unions had bloc voting rights at annual party conferences. The leadership of the NZ Council of Trade Unions maintained loyalty throughout the wholesale assault on workers- just months before Labour's 1990 electoral oblivion, it signed a deal with the government, agreeing to a 2 % limit on wage rises.

"In 1984, one of Labour's campaign promises was to 'Save RaW. My union (the National Union of Railway Workers) campaigned for Labour and contributed tens of thousands of dollars. Long before Labour's two terms were up, we had disaffiliated from Labour, which presided over the 'downsizing' of NZ Railways staff by 70% (including me)".

Noted rabies victim, Sir Douglas, has been travelling the world spreading

the disease. Believe it or not, he is regarded as an expert on privatisation. But now that travel has broadened his mind, he is feeling a slight twinge for his victims back home.

"New Zealand's restructuring of Government businesses has been harsher on workers than in many other countries, the architect of the State-owned enterprises policy, Sir Roger Douglas, said yesterday. Speaking in a Business Roundtable briefing on privatisation, Sir Roger said this partly reflected that some countries had done too little to ensure corporatised businesses became competitive.

"Sir Roger, now an international consultant on injecting market principles into moribund, State-dominated economies, said there were always winners and losers in the process of change. The reform path chosen in New Zealand had concentrated on creating competitive markets in the areas of business of SOEs before privatising them .leading to greater job losses early on. This was in marked contrast to a new World Bank study looking at privatisation experiences in countries such as Malaysia, Britain, Mexico and Chile .....

" 'Labour were much greater losers in New Zealand partly because we did more to ensure we had maximum competition upfront', Failure by other countries to deal with their labour problems was one of the main reasons why their corporatisation was less successful than in New Zealand. 'Wherever I have beenin Russia, Pakistan, Brazil- the one thing causing them problems is that they haven't been prepared to tackle that particular issue', he sald.c.;

II The Roundtable yesterday released a privatisatlon report apparently attempting to counter a view expressed in a political climate which has become increasingly hostile to both privatisation and controversial business decisions by SOEs. The organisation wanted to balance the tendency for the issue to become emotive, the Roundtable vice-chairman, Mr Bob Matthew, said".

Ah, now, we can't have the subjects of mass unemployment and impoverishment becoming emotive, can we? So we'll get journalists like the appropriately named Pattrick Smellie to write it up with unernotive, objective phrases like" moribund, State-dominated economies" and" labour problems". Diehard Rogernauts still infest the media, the mad dog made sure he bit them early on in the piece. Smellie deposited the above in the "Press" (29/7/92, "Privatisation harsher in NZ, claims Douglas").

The same report stated that Tom Burns, Telecom's CEO, publicly supported Douglas at his annual meeting. "He said one of Telecom's strengths was that it had dealt early with its' overstaffing problems and was better able to compete in a completely deregulated environment" , Of course, Telecom has its' own reasons to be grateful to the Douglas/Prebble duo. Its' American owners have done very nicely indeed out of privatisation. Pattrick Smellie's separate report of Telecom's annual meeting, in the same issue of the "Press", stated: II (Chairman Peter Shirtcliffe) spent some of his speech further softening public opinion for an assault on the Kiwi Share provisions in the Telecom sale and purchase agreement with the Government" . And since then (July), it has taken steps to further erode the spurious Kiwi Share (remember the TV ads? The 10 Commandments carved in polystyrene).

Czechs Don't Bounce, Privatisation Falls Flat

Douglas is touted as the messiah for the yearning masses of Eastern Europe, who are all busting their guts to become capitalists (tell that to the millions of unemployed in the former East Germany, or the migrants facing neo-Nazi violence there).

Unfortunately for the Rogernauts, the evidence doesn't stack up. The "Press" (20/8/92) starkly headed a report: "Czech reforms failing, professor says". The professor was Milan Zeleny, a management expert. Not an embittered Communist, he left Czechoslovakia in 1967, and teaches at New York's Fordham University. He spent 2 months as Erskine Fellow at the University of Canterbury this year.

91 Inexperienced monopolies to free entrepreneurs were present to

had given a free hand production. 'Foreign and speculative , ... f:,,,,,,,,,,c,t

few healthy companies to further own

left with little more than their labour ..... The market is very never lifts the weak ones. It always strengthens the strong ones."

"While New Zealand's economic reforms were made to a prepared

populace, Professor Zeleny sees some parallels to those in Czechostovakia. He said some New Zealand reforms had been introduced without discussion, and opponents had been labelled ... " It all sounds very familiar.

Roundtable Targets Producer Boards Next

The Rogernauts and Roundtable flatheads have chosen next target-

producer boards. Richard Prebble told an Australian agricultural conference: "The evidence in New Zealand is overwhelming that producer boards have had a disastrous effect upon agriculture, upon the price that farmers receive, and upon the development of the industry". ("Press", 7/8/92). Prebble also unfavourably compared the Dairy Board to multinational giant Nestles. Neville Martin, Dairy Board spokesman, responded: II Is he so naive as to imagine Nestles is in the business of making the farmers from whom it buys its' mi.lk wealthy?"

The Roundtable has also commissioned a study of producer boards by Denis Hussey, a Lincoln graduate and now an Australian based agricultural analyst He has denied that he is doing a " hatchet job" C'Press", 28/8/92), but his claims have been vigorously refuted by both the Dairy Board and the Apple and Pear Marketing Board as demonstrably wrong on several counts.

Alan Gibbs (at the sound of whose voice babies fill their nappies), said: "The Meat Board should be put out to pasture and more competition introduced ... In meat and wool the rules could be changed overnight at the whim of a producer board. 'Frankly I would not go near a business that had to operate in such an environment' " ... C'Press'', 22/9/92). The Meat Board didn't take this lying down. Its' chairman, David Frith, responded: "If Mr Gibbs believes that New Zealand's farming families are going to quietly step .aside SQ they can be manipulated by entrepreneurial companies, he should think again.i.Farmers in each sector generally support their producer boards because they want to have some influence over their destiny, rather than get treated as mere raw material suppliers like Third World banana and coffee growers .... "("Press", 23/9/92)

Who Said That Dirty Word Protectionism?

The Government has imposed anti-dumping on some Chinese made

womens' shoes, after representations by local footwear cheap Asian

imports are being dumped here C'Press'', 8/9/92). This led to aggrieved squeals by the director of Payless Shoes that it was II a directattack on the poor s o .they're the people

who come into our stores and payoff $1 a week on a of $29.95 shoes" .

Duncan Ingram, president of the Manufacturers' Federation

said:" ... the industry had been devastated by unfair competition from shoes dumped here at less than their true cost. Production had fallen over the last three years from 8.25 million pairs a year to 4.50 minion pairs, with the IQSS of a large number of jobs, 'If dumping had been allowed to continue it would have led to the demise of the footwear industry in this country within 12 to 18 months' "'""

Payless Shoes (which undoubtedly pays to buy them from China) has a

point, but the answer is not to import cheap Asian goods, but pay NZ enough so they can afford to buy NZ made shoes. Even better, return the country to fun employment so we don't have a permanent underclass with nothing underfoot. The yuppies wear Guccis; the "losers" wear jandals.

One final travel tip for Sir Roger. Somalia strikes us as a country where the government has most emphatically got out of the business of governing. It should be ripe for his brand of lunacy. Why not go there? And, preferably, stay there.

To absolutely nobody's surprise, part

complete and utter shambles. (T'art your parts, you have to pay to get it didn't introduce the charges to actually revenue for the Government, but to teach us the value of a donal' Gust as Dad used to say), and to discourage us from gratuitous sickness.

But even such an unworldly twerp as our Simon must have mortified to be

officially informed that instead of realising the $95 million grandiosely proclaimed in the 1991 Budget, health charges will only bring in $14.4 million ("Press",30nI92). And these figures came from Treasury, so they must be true. Simon to his guns, and said the charges will remain.

Nonetheless it has become a very sensitive There is widespread public

resistance, outright non-compliance. Some of that is attributable to campaigns such as Christchurch's Can't Pay, Won't Pay, Don't Pay Twice, but a lot is good old Kiwi pigheadedness when it comes to being ripped off, According to the "Press" (3/9/92), Opposition health spokeswoman, Helen Clark, was complaining that the Government was refusing to tell her the compliance rate for hospital charges in Canterbury. VI A shroud of secrecy descended over the Government's hospital user charges in Canterbury", Figures in June showed the percentage of unpaid hospital charges ranged from 28% in Canterbury to 63% in Taranaki. Associate Minister of Health, Maurice Williamson, claimed that area health boards had a better than two thirds compliance

rate, and this was in line with the average for businesses.

The news has got worse for~ Simon. II A study commissioned by the Department of has concluded that the part-charging regime introduced in February was ill-conceived and contained fundamental An Auckland economist, Ashton, pointed to major problems the income thresholds that determine the level of Government health subsidies ....

"Her compared the charging levels with those in countries .

• "or GP services, adult charges other countries were generally between zero and

50% of the costs, to 50% to 100% in New Zealand, 'Because GP

charges were as the for hospital charges in the interim regime, hospital

charges were also relatively high in New Zealand. In most countries, in-patient hospital care is usually free, or charged at a nominal rate (less than $25)' Ii ,..("Press", 11/9/92).

The "Star" didn't mince words, in an editorial "Minister should fix an

his heaUh (1 "For many people it was obvious that hospital and

health was from the day it was announced, But the Minister

Health and, after spending minions taxpayers' money on it, he

has now he is Simon Upton have felt sick when he

received a study by an Auckland economist, Ashton. said the part-

introduced in February, was ill-conceived contained

of course, comes as no

. says some of the enol's made have

words" He should face the music and fix

Ashton's told Mr Upton that he has even got the

groups out kilter, That problem was pointed out at the outset. The report was

commissioned Health itself and the department and the

Minister now condemned.i... Ii

professionals have been vocal in their condemnation of the

implementation of the user philosophy the realm of human misery. Dr Alister

Scott, chairman the NZ Association, described the new legislation as

Ii mean men who might also wish to see soup run at a

a dividend". ("Press",28/8/92). Speaking of the new

late Guevara, must be spinning

''''H.'''o,''; with responsibility

surgery: U

a Rejection of one part or other is

George Salmond, former Director-General (now a

health consultant Wellington), told the Public Health Association of Australia that n radical market-driven changes had been forced on the health system without consultation or debate ..... 'Whatever the political fortunes Australia, Ret us hope you can avoid the more unfortunate aspects of the latest experiment in New Zealand' Ii ("Press", 12/9/92).

Meanwhile the Health Department is not relying on the Government, in this brave new world. As the "Press"(30/7/92) headlined it: "Hospitals funding by Lotto forecast". Perhaps they'll announce the lucky draw for those on the waiting lists on Saturday night TV.

And the health multinationals are positioning themselves to profit mightily under the new regime. To give one example; Christchurch's Medlab South was officially opened at the end of July. It grew out of the merger of Godfreys and Pearsons Laboratories, in 1990, when they in turn were taken over by the Societe Generale de Surveillance (what a splendidly sinister name), a Swiss-owned international testing and inspection company. Its' chief executive, Mr Tony Czura, said "the Government's health changes would bring tremendous change to medicine. He believed they would necessitate increased private sector capital, management skins and resources. The company was proud to be among the first private sector companies to apply themselves delivering quality health services" ("Press", 29n /92).

You can bet that it won't be the last.

I

\

\

The combined membership of two of the country's noted caring and sharing professions, namely the Society of Accountants and the Law Society, have sent a rare joint letter to Jim Bolger, Ruth Richardson, and Sheriff Wyatt Creech, protesting tax changes proposed in Ruthie's 1992 Budget. Speaking on behalf of their combined 25,000 members, they branded the proposals "severe" and" radical".

Why? Well, among other things, the measures will r" Favour domestic investment over offshore investment"; and" Worsen New Zealand's 'existing unattractiveness' to foreign investors". (Tress'', 2/9/92).

God help us. In a country largely run (disastrously) by lawyers and accountants, they are now complaining to a Tory government that its' tax measures will encourage NZ capitalists to invest in their own country (instead of Chile), and will frighten away the timid foreign investors.

These two professions (along with real estate agents) do rather nicely out of the massive selloff of New Zealand. They are the doormen who open the door and pick up a tip for doing so. We, on the other hand, are merely the doormat.

Bolger must be mucking things up properly if he's managed to get offside with the three piece bludgers. Not that this government is actually doing anything to reverse the tide of foreign control. Quite the opposite.

MERT Sets Up Foreign Investment Unit

"Watchdog" 69 detailed the new foreign investment rules, which worsened the already hopelessly inadequate previous ones. This has now been taken a step further. Increasingly the Ministry of External Relations and Trade has come to focus on the latter. So it was logical that in August, MERT should announce that it is establishing a Foreign Direct Investment Promotion Unit, within its' Economic Division, with a staff of 4.

The relevant internal circular, from R.E Nottage, Secretary of MERT, states.: i'MERT has responsibility for coordinating generic promotion of New Zealand as an investment destination. This function is closely integrated with our general trade and economic work and involves the full range of our posts and regional divisions, with the Economic Division having a coordinating role".

It will interesting to see what further incentives foreign investors will be offered (see "Watchdog" 70 for the debate on investment incentives within the political elite). Koreans Say NZ Workers Paid Too Much

"The Government is keen for more Korean investment in New Zealand.

Minister of Finance, Miss Richardson, visited Seoul last March during a promotional tour of Asia. She touted New Zealand as a good place to invest, given labour market changes, low inflation and favourable exchange rates. Koreans, however, are not greatly interested.

"Other nations, particularly in South East Asia, give incentives for foreign investment, said Mr Minn Wan~kee, executive director of Korea's Chamber of Commerce and Industry, He said Korean firms would like to see tax holidays and factories free from trade union involvement Clearly, the flexibility provided by the Employment Contracts Act is not sufficient for Korean investors. The withdrawal of a Samsung subsidiary from a North Island paper mill project u .... ''"''''',_.''',. of a strike has not assisted the image of New Zealand as a place to invest.

" 'What concerns us most. is the high wage level in your country', said Mr Minn. "VhiRe this seem outrageous to New Zealand workers whose income has already been cut, the reality is that Korea has plenty of other nations begging for investment Many offer cheap labour and tax incentives ... c e II ("Press", 4/9/92, "NZ must work to increase trade with South Korea").

from

The company has been coy about what its overseas associates plan to do with the

water. Bottling it on the West Coast of the United States or England use by

US and other military personnel in the Middle East is one possibility.

An industrial scale project like this is more appropriately located close to a major port and in an area which has already been modified by human development. It does not belong in pristine wilderness in the heart of the South West World Heritage A West Coast action group.W.AT.E.R (Water Acquisition Threatens Ecological Resources) has been formed to oppose the venture.

While New Zealand will receive a mere eight to ten jobs for the water we are giving away, we are likely to receive some less welcome gifts in return. The regular super tanker visits are likely to be associated with marine pollution problems such as sewage discharge, oil spills, and toxic dinoflagellates being discharged with ballast water. These foreign micro-organisms could contaminate local fisheries, especially shellfish, on which crayfish feed. The recent findings of toxic dinoflagellates previously unknown in New Zealand at Taharoa south of Port Waikato highlights the danger of foreign shipping discharging contaminated ballast water.

Wildlife poaching of Fiordland crested penguin and other species is also a risk. Local fishers suggest that the seabed disturbance from anchor drag and the sediment stirred up by the supertankers' powerful propellers could cause major damage to off- shore reefs of red coral.

Tourists currently visit South Westland to enjoy unspoilt nature and its World Heritage treasures, not to see a forest and coastal landscape scarred by access roads, concrete tanks, a pipeline and super tankers tied up offshore. The venture could compromise the growth of a sustainable local tourism industry in the South West.

SUBMISSIONS NEEDED

The Minister of Conservation, Denis Marshall will decide shortly on Okuru Enterprise's application for easements and licences over national park and conservation land.

If approved the venture would create a precedent for the exploitation of water in national parks for export Letters and objections to the proposal can be sent to :

continued p37 ...

24

SIR HAMISH CAUGHT ROLLING IN THE HAY Knightly Bludger Goes Offshore For Tories' Daily Bread

Christchurch is not used to having mayors that actually do anything. The current one, Vicki Buck, has solved this by only pretending to do anything. But two decades ago, 2 highly activist ones were elected in succession- Ron Guthrey, and Neville Pickering. This was too much for the good citizens, who proceeded to vote in Sir Hamish Hay as mayor, for the next 15 years. He restored the status quo, and his genius was in being a "proper" mayor. He looked the part, wore the heavy metal costume with a straight face, and performed all the necessary duties- cutting ribbons, kissing babies, having cups of tea with old ladies, and carrying the Queen's handbag. He never put a foot wrong, and retired undefeated. Meanwhile, of course, the local business elite, represented by him and Citizens, also got on with running the city, in their own interests.

Sir Hamish should have stayed retired. Because in his current capacity, as president of the Citizens Action team, he has been very much caught rolling in the Hay. And, as people do when caught in that position, he didn't look particularly dignified at all.

It's not very long ago that Tories, of Sir Hamish's ilk, were prone to claiming that all sorts of people that they didn't like were in the pay of the Soviet Union, or Libya, or Cuba. Proof was always the problem. Well, Sir Hamish has handed us proof on a plate- of his own soliciting of political campaign funds from overseas.

Christchurch is a sister city of Kurashiki, in Japan. In May this year, Sir Hamish visited there on sister city business. There, he had dealings with former Christchurch man, Michael Gorman, who is a Japan-based director of the sister city committee. Gorman introduced Sir Hamish to Kisao Nishina, a local millionaire (whose son is an exchange student in Christchurch). Back home, Sir Hamish wrote to Nishina: " My reason for writing this letter is to ask you to consider making a donation to assist the election advertising costs of a conservative political. organisation of which I am President- namely the Christchurch Citizens Action Association- which is about to contest the local Council elections ..... Our team is strongly supportive of our sistercity relationship with Kurashiki and in further developing friendship and economic ties with Japan, especially in the tourism sector.

"We are urgently needing more funds to assist our campaign costs, and would deeply appreciate any donation which your Company or any other organisation you may know of in Kurashiki which has links with Christchurch may wish to make. We will, of course, keep the matter strictly confidential".

Oh no, we won't. Despite signing his letter as "Mayor of Christchurch 1974- 89; Order of the Rising Sun (with Gold Rays)" , Sir Hamish had definitely picked the wrong Japanese millionaire whom to send a begging letter. Nishina was embarrassed by receiving the letter, and referred it to Gorman (his friend of 25 years). Gorman promptly wrote to Sir Hamish, describing his request as "appalling", and continuingr''You met him in my house and he entertained you to dinner. How could you possibly abuse an introduction in such a way? He is embarrassed and so am I. This is yet again another example of New Zealand bad behaviour which has sullied the relationship for years ... "

Sir Hamish was stunned, and urged Gorman to convey his apologies to Nishina, and disregard the request. But he still seemed to miss the point. He told Gorman he was not accustomed to receiving "such critical letters as yours". Gorman was sufficiently outraged to go public, and so Sir Hamish found his bludging letter splashed all over the front page of the "Press"(22/9/92).

At this point the Tory damage control machine swung into action. Citizens Action averred that Sir Hamish was acting alone, without authorisation( indeed, Sir Hamish stated: "Even my wife was totally unaware of my approach to Mr Nishina"): Cr Dennis Rich tried a bit of Muldoon counter punching by saying" I find it a wee bit despicable that someone would release private papers like that"; and Sir Hamish himself" believes Mr Gorman is pursuing a long standing grievance against him for allegedly undervaluing his work in forging the (sister city) link" ("Press", 23/9/92).

25

to assume City Council Hamish, meanwhile, has done the ,.~,.,~",.

He resigned as Action president, he an "error

judgement" .By an of exquisite timing, the story covered the "Press" frontpage on

the same day that Citizens launched its' high profile election advertising. a photo of two blindfolded puppets labelled "Labour" and "Alliance", the heading boldly proclaimed: "Serving CHRISTCHURCH without strings attached e e e e Christchurch decisions should be made in Christchurch by those whose sole concern is the welfare of Christchurch and its residents. Without strings attached". Very commendable. Presumably that rules out Japanese millionaires.

It makes no difference that it was a Japanese that Sir Hamish went bludging to.

It would be equally reprehensible if it was a German, Englishman, or Australian. Indeed, the latter is most likely, as they are far and away the biggest foreign investors in NZ. Nor should Labour make too much noise about it. During the heyday of Rogernomics, it didn't have to write pathetic begging letters to NZ big business to extract millions. It came flooding in, and all without any incriminating evidence being left behind.

This episode provides very rarely obtained proof that the local business and political elite is in the pocket of NZ and international Big Business; it dispels any illusions that foreign investment is purely an apolitical business matter; and it introduces the very real possibility of political corruption, involving foreign money.

Thank you, Sir Hamish, you've performed a greater public service than you ever did during 15 years in office. By being so stupid, you've shown us what goes on behind the scenes, and who's pis sing in whose pocket You might also reflect on the frustrating perils of trying to find a yen in a Haystack.

OPEN SKIES; OPEN SEAS; OPEN SLATHER

Aviation deregulation gave us Ansett New Zealand, and Fluffy the cat. Now the deregulators, possibly after consulting Fluffy, have decided it's time to deregulate the sea. Specifically the New Zealand coastal shipping trade.

The Crown Law Office was asked for a legal opinion on whether the Shipping and Seamen Act could be used to "liberalise" coastal shipping. It said that the Act could, in fact, do so, and its' opinion was issued as a set of guidelines by the Ministry of Transport's maritime transport division.

The nett result of this "liberalisation" is that the NZ coastal trade is immediately thrown open to foreign shipowners, with foreign crews, Any foreign vessels will be given access to coastal trading providing they meet or better NZ safety standards. The old rule was that foreign vessels could only ply NZ coastal waters if no NZ ships were available to carry the cargo.

The policy was introduced without any consultation (sound familiar"), and has immediately bought a fight with the Shipping Federation. It's executive director, Ken Plowman "said the new rules would introduce an open coast policy and were a blatant bid to introduce foreign ships and workers into the domestic transport industry. 'We don't have problems with competition on the coast as long as it's New Zealanders against New Zealanders with the same terms and conditions', ..

II c e e One of the federation's criticisms is that the policy relies heavily on foreign operators producing bona fide shipping certificates to verify their safety and crewing standards, 'How the ministry win police these guidelines is a mystery. Some foreign certificates are of dubious origin and offer few safeguards', Mr Plowman said.,

Ii 00. The managing director of the Christchurch-based company, Coaster Services, Mr Ross Fast, said the ministry was trying destroy an industry had spent of dollars on to internationally

26

in opposite direction to the of the

countries allow foreign ships to carry coastal trade' e e e

of Seafarers' Union, Mr Gerry Evans, said union

members wound stand back and allow cheap foreign labour to be introduced

into the work force". ("Press", 9/9/92),

Dave Morgan, the Seafarers' president (and God's gift to hard pressed haberdashers) got straight to the point, in an internal memo (released to us by the union): :10 aU intents and purposes the NZ coast has been taken out of and is no I!.mger llart of the NZ econQUU (his emphasis) .... " Describing a meeting with the MOT's maritime transport division, Morgan wrote: "Of course, it was stacked with foreign nag operators, prominent amongst which were Seabridge who act as agents for French, Italian, Dutch and German shipowners whose ships currently ply the coast as part of their overseas trades without lifting coastal cargo. The new regime offers them a wonderful opportunity to make a fast buck at the expense of NZ owners.

"Apart from the foregoing fads and probabilities is the certainty that as this cheap labour competition hits home our employers are bound to come to us seeking reductions in costs again. So, as wen as jobs, the threat is a direct one which has the effect of Dowering conditions .... II

The seafarers have always been one very staunch union. They've never joined the lemming stampede to become a designer union, so accordingly they've been berated on all sides as industrial dinosaurs (they wisely stayed out of the CTU). Regardless of that, or more accurately, because of that, they win more fights than they lose. Ask successive managers of the Railways' Interisland Line. Ask "Filthy Phil", the bikie leader foolish enough to tangle with the Lyttelton seamen (led by a hatless Dave Morgan) at a memorable Vietnam protest rally (see "Peace People" review, this issue).

The seafarers have always been active backers of CAFCA. We took joint protest action against the Buller coal trade to Japan; they have consistently donated money, and provided all manner of practical assistance to us. As one of the strongest unions remaining in post-apocalypse NZ, they are always under attack. This new move is a direct threat to their wages, their conditions, and, ultimately, their jobs. We back them to the hilt in this fight.

As for the NZ shipowners, well, we salute them as far as they go. But capitalists always manage to cement the international brotherhood of capital. Those that don't go under (no pun intended) will form joint ventures, or sornesuch, to profit from foreign cheap labour, or use it as an excuse to drive NZ workers' wages lower. We carry no candle for NZ bosses. They'll survive, their lot always do,

Selling University to foreign investors

The government, through the New Zealand Qualifications Authority (NZQA), is hawking off the title University in order to attract overseas investment in tertiary education. This has united the New Zealand Vice Chancellors Committee (NZVCC, the voice of the seven existing, state-funded, universities) with their main staff union and professional association, the Association of University Staff (AUS),

The Auckland business school, Asia Pacific International, applied to the NZQA for the right to use the title "University" so it could attract students - mostly from overseas. Both it and the NZQA admitted it did not meet the criteria that NZQA required an institution to meet to call itself a University. In fact Asia Pacific had previously been using the title, and had been ordered to stop by NZQA - but is still using the name,

The Auckland Asia Pacific International business school is part of a chain of Asia Pacific International institutions around the Pacific, based in Hong Kong.

Both NZVCC and AUS consider that the granting of the title University to it,

cheapens title in the eyes of the rest of the world, and thereby downgrades the

standing our universities, As University of Canterbury philosopher, David

Novitz puts it 1992),

declaring management a university seems

intended both to meet the Government's strong desire for foreign investment and to create a quandary for the seven State universities. For although the State universities not believe that quality can or should be monitored by a Government-directed institution, some form of national quality assurance may now be needed to protect the international reputation of the university system from the ineptitude that NZQA seeks to foist on it."

The following extract from the Radio New Zealand program, Checkpoint (9 September, 1992) makes the blatant commercial motivation for this action quite clear. The reporter was Bronwyn Evans.

Evans The decision to grant the use of the title "university" to Asia Pacific International was made about a month ago. The Chancellors and Vice-Chancellors of New Zealand's seven Universities issued a terse media statement deploring the move. Now they're considering legal action. Rob Crozier, the Executive Director of the Association of University Staff, says the issue is deadly serious and can't just be left to drop.

Rob Crozier In away, it's a bit like the French running a campaign to protect the word Champagne. To our mind, the word "university" has certain connotations, and any institution which wishes to call itself a university ought to meet the criteria of a university that is now laid down in New Zealand legislation.

Evans The Vice-Chancellor of Otago University, Sir Robin Irvine, explains

why the Chancellors are taking it so seriously.

Sir Robin New Zealand is a very small country. We rely very much on our international credibility to recruit staff, to get our own staff invited to important meetings. We feel the international standing of New Zealand universities is very important for a small country. We don't feel that, having numbered among the bodies that are called universities a small training establishment that possibly has less than 100 students and teaches only two post-graduate degrees in business, having that called a "university" in the New Zealand scene, is going to help the international picture of New Zealand universities.

Evans The Universities are considering legal action because they say Asia Pacific doesn't appear to meet the requirements of a university, as set out in the Education Amendment Act. The 1990 Act says the Universities must have, as their principal aim, to develop intellectual independence, that research and teaching must be interdependent, that they must meet international standards of research and teaching, they must be a repository of knowledge and expertise, and they have a role as critic and conscience of society. I asked the Chairman of the Qualifications Authority, Sir James Stewart, if he's satisfied that Asia Pacific meets the criteria as set out in the Act.

Sir James It doesn't at present meet those requirements, because it is only a small

operation Auckland now. But what has to be understood is that it is an institute at

present of an international operation called Asia Pacific Institutions, which has its headquarters in Hong Kong and which has a history of development.

Evans Surely then, as far as the Act is concerned, it should actually meet those requirements now. It's not good enough to say that we will meet those requirements

some in the future.

Sur The argument is this, really. This is a private operation.it's a commercial operation. It will require a very substantial investment and it seemed to us that it was

unreasonable to this particular operation to be able to get off the ground without

the ability to use title. They will be seeking students internationally, they will be

fee-paying students. It is a totally private operation. Their argument was that without the ability to use the title they would not be able to meet their commercial objectives. So we have given them that opportunity.

Evans Why should the commercial concerns of an institute which wants to be

properly recognised by the Qualifications Authority be your concern?

Sir James The Act was designed to enable ... it's an enabling Act as wen as a protecting Act ... to enable the establishment of private educational institutions in New Zealand. And we have to interpret our objectives, our obligations, under that requirement. I think it was a small but reasonable part of the argument that was aduced by API, namely, how can they be expected, or how can they be enabled to establish a private university in New Zealand, and to attract students, without having the opportunity to use the name.

Evans Given that there have already been problems with Asia Pacific apparently flouting the request of the Qualifications Authority to stop using the name "university", can the Authority be confident that it will now comply with the requirements which have been laid on it? Sir James:

Sir James I can only respond to that by saying that we are satisfied that we have, over eighteen months, gone over in detail the requirements. We have had lengthy negotiations with the principals of Asia Pacific International and in our best judgement at present - and no judgement of course is always ... can be guaranteed to be 100 percent provable - but in our best judgement at present, API will respond to the requirements that we have laid down. It is aware of what the penalty will be if it doesn't.

CONTRP[T1NG OUT!

/

WHAT THE ~!!

AR£ YOI) ~

~/ DOING?! I( \?

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29

Decisions released on A number of decisions previously withheld have now been released by the Ole as a

result of appeals by CAFCA. CAFCA appealed to the Ombudsman any

deletions or alterations to the Ole. The Ole was totally

uncooperative with the Ombudsman, Nadja In one of her final acts as

Ombudsman, Ms Tollemache suggested we change our approach. Her suggestion was to go back to the OIC three months after they refuse to release information, and ask

them to reconsider their refusal. If they then we will again appeal to the

Ombudsman. following are as a result of this procedure.

January

five deletions still withheld.

February 1992: one deletion still withheld; the price involved in a transaction detailed in one page was released. This recorded an approval to Nakano Construction (NZ)

Ltd, a subsidiary of Nakano of to purchase Peat Marwick

House, Wellington for $28 million statutory managers of its owner, Chase

Manners Developments Nakano a mortgage over the building, together with

another Japanese company.

March 1992: four deletions

withheld. Three were released, one still not in full,

The first release simply reveals the owned by Ishiyama Corporation Wakefieid Street~Wemngton: sources" believed at the time.

Holdings Ltd (ultimately for International Hotel, This was precisely what "industry

The second reveals a completely suppressed. It still attempts to

suppress a crucial fact - decision gives Telecom Corporation of

New Zealand 25 percent of the issued share

capital of a company the company is suppressed. However

the stated "benefit" of that "the Commission is advised that

Telecom will provide further technical expertise technology to Comtel." Why Telecom wanted Comtel's name suppressed is not clear. The cockup was "solved" five

days later the Ole releasing the name in Communications Ltd.

The third is a retrospective (ultimately owned by

McCain Foods Ltd, land near Christchurch

for approximately $850,000, on it. The Commission

states that this was m, though we received no

notification of it McCains approval to buyout New Zealand Alpine Foods Ltd

for $3,810,000 in June 1990. Since then its Washdyke processing plant has been a

competitor Wattie Frozen Foods for carrots, potatoes and beans for

processing. It initiated IOf sweetcorn for processing in

Canterbury. the Foods of Canada "has 46

production foods and frozen

vegetables. "

completely suppressed) is approval to issue shares to

as as

May one deletion still with held, one, previously completely

released. It approves UK company, Chapman Properties Number Ltd C'owned by NZIB Investments Ltd which is acting for a

banks") buying an office complex in Great South Road, Penrose, as

Office Park, from Central Office Park Ltd (under statutory management) for "approximately" $38 million. Central Office Park Ltd is owned by the Aurora from which "the applicant [Chapman Properties] will acquire certain other assets." June this had been sold on to Hind Hotels International Ltd (major shareholders C.L., S.S. and L.N. Jhunjhnuwala) of Singapore at the same price.

June 1992: six deletions still withheld, one released in part, one in full. The one release in full relates to Central Office Park (see May 1992 above).

The one released in part is a major one. It is the acquisition of the "business, assets and land of the carpet yarns division of Alliance Textiles (NZ) Ltd" by Summit Wool Spinners Ltd, a subsidiary of Sumitomo Corporation of Japan. Alliance is one of Aotearoa's biggest textile manufacturers. According to the Press (25 June, 1992), the deal gives Sumitorno about 40 percent of New Zealand's carpet yam production capacity. It involves the purchase of an Oamaru carpet yarn factory from Alliance, using a joint venture company. Surnitomo refused to disclose whom its joint venture partner was, nor what they paid for the assets. The mill supplies about 10 percent of the carpet used in Aotearoa. The deal includes 2.26 hectares of rural land. Sumitomo is well known as being the minority shareholder in the Bluff Aluminium smelter alongside Comalco.

June decisions

The animal ear tag golden boy the 1970s, Altflex Holdings Ltd, haying sold itself out to French company Societe Francaise D'Innovations Pour L'Elevage is now selling off its Tux and Rover pet food business to the transnational food giant, Nestle SA, through its local subsidiary, Nestle New Zealand Ltd (Switzerland). The two brands are owned by a holding company, Mirabelle Investments Ltd. The companies told the Ole that "rationalisation of the Nestle and Allflex businesses following the acquisition will give scope for significant cost and efficiency gains, thereby improving Nestle's competitive position and increasing the potential for new export opportunities," In other words, it will reduce competition and increase Nestle's profits. The price was deleted by the

The Numakura family, from Japan, described as having "extensive property interests throughout the world" are seeking permanent residence and have purchased a hectare kiwifruit orchard near Kumeu (for $280,000, through companies Band L Farms Ltd and Beccadon Holdings Ltd), and a 90 hectare diary and horticultural property at Clevedon, Auckland (for $1,110,000, through the company Holdings Ltd). The Kumeu orchard will have a local manager, and the Clevedon farm will be "further developed ... with an eye to the lucrative Japanese market."

An unusal case for the OIC involves a Singaporean, Goh Cheng who is acquiring "all the assets, including freehold land, leasehold and seabed licence interests in a marina and associated service land, all plant and equipment of Gulf Harbour Ltd,

Gulf Harbour Marina Ltd, Gulf Harbour Investments Ltd, GuM

Estates Ltd." The Gulf companies have been in receivership since December 1989. "Mr Goh has agreed to recognise the interests of the existing marina berth licence

holders." What makes it unusual is that the OIC has made approval to

following : "The consent is on Mr Goh

Commission with an appropriate development plan and schedule within two years and that the proposed golf course be open to international and domestic golfers alike." The golf course conditions have been pretty well standard since the controversy over the Wairakei Golf Course in 1990. But the development plan requirement is unique.

The 1987 receivership of Poultry Processors (NZ) Ltd has led to the transfer of three rural properties to a Wattie Industries Ltd subsidiary, NRM Feeds Ltd in payment of Poultry Processors' debts. The properties are 2.4179 hectares at Leburn, 5.9764 hectares at Seafield, and 4.0595 hectares at Cust. Of course, this is not greed: it is all for the greater good of the community: "The Commission is advised the benefits of the proposal are the continued profitable and economical running of primary produce sectors of the rural economy which have the flow-on effect of creating jobs and providing the local and national market with poultry foods." Quite a .clairn for a transfer of 12 hectares of rural land!

In other rural land, a company, Paulwell Farms Ltd owned by two U.K. men, has been given approval to acquire a 6.6754 hectare property on Eltham Road, Mangatoki, Taranaki for $220,000. It is next door to a 47 hectare property purchased in 1990, and has a house on it that will be the permanent home of one of the partners and his family. A four hectare rural property at Paremoremo known as House No. 2, Harden Farm is being sold for $260,000 to a U.K. couple (via their company Stuart Phoenix Company Ltd) who propose to take up permanent residency there. Another German (not Ralf Simon) is buying a "lifestyle property" on Waiheke Island. He is buying a 2.7 hectare block for $240,000, on which he proposes to build a holiday home which he and his family will occupy for up to six months each year, and establish a small vineyard. A U.S. citizen seeking permanent residence is buying a 48.6736 hectare 'lifestyle property' at Dalefield near Queenstown for $402,000 which is owned by the company White Winter Two Ltd. Two Taiwanese are buying a mixed pastoral farm of 247.3488 hectares at South Head, Kaipara Peninsula; they "plan to introduce a different farming regime which will provide for a more intensive stocking ratio and higher productivity. The feasibility of an integrated farming and tourist operation is also to be investigated." A Dutch couple who were dairy farmers in Holland are purchasing a 194.6832 hectare Southland sheep farm for "approximately $1,000,000" and intend spending $800,000 to convert the property to dairying. They intend settling here; they are operating through Douma Farm Ltd (previously Piton Trading Ltd). Another U.S. resident is buying a half share of 281.8585 hectare Tekonini Farm, Hawkes Bay through Te Konini Farm Ltd; the existing owner will lease back the property.

A piece of industrial land of 2.0856 hectares in Johns Road, Christchurch is being sold to Christchurch Cutstock Ltd, which is 50 percent owned by a U.S. couple, by Peter Stevens Ltd (in receivership) and will be used for "preparing rough sawn timber primarily for export. "

The Penrose, Auckland, Central Office Park Ltd, which was acquired from the Aurora Group in May by a syndicate of creditor banks, has been sold on to Hind Hotels International Ltd (major shareholders C.L., S.S. and L.N. Jhunjhnuwala) of Singapore at the same price as the May sale: $38 million.

Time Warner Group (U.S.A.) is consolidating its subscription television business into one entity, Time Warner Entertainment Company, L.P. It has transferred its ownership of Time Warner Cable New Zealand Holdings Ltd to Time Warner Entertainment as part of this "international consolidation". Morgan Crucible Company Pic (U.K.) is reorganising its subsidiaries including its local companies, Morgan Crucible Holdings (NZ) Ltd which will be owned by Terrassen Holdings B V (registered in the Netherlands), and which in turn will own Heat Containment Industries Ltd.

32

July """,~_n.:>n'" .. ",

The Murdoch organisation News Corporation Ltd (Australia) is setting up a printing subsidiary to compete in Aotearoa. Pacific Magazines and Printing of Australia Ltd, which is 45 percent owned by News Corporation, has approval to operate here through subsidiary Dancette Holdings Ltd. "The Commission is advised that the proposal will bring increased competition to the New Zealand printing industry along with a high degree of technical skill due to the experience of the Australian owners. It is envisaged that fun scale operations will commence in early 1993 with the expected employment of approximately 35 people." There is no estimate of how many people it will put out of work by displacing printers in an industry already hit hard by competition from Asia.

The major U.S. confectionery manufacturer, Mars Inc, is setting up a subsidiary here, Effem Foods Ltd. (Presumably the name says something about the company's attitude towards its customers.) Effem is buying a 22.4904 hectare diary and dry stock farm on the corner of Peake and Bruntwood Roads, Cambridge for $670,000. It also has plans to "establish a manufacturing plant for the Mars range of ice cream products which are currently imported into New Zealand. The Commission is advised that the plant, which will be fully automatic and equipped with advanced technological machinery will initially emply 60 people and eventually employ up to 200 people (depending on demand). Over 90 percent of the planned production of 15,000 tonnes per annum, will be exported to Asia, Japan and Australia."

Five Star Beef Holdings Ltd, the joint venture between New Zealand Meat Board subsidiary, ANZCO Developments Ltd, and Itoham Foods Inc., of Japan, has been given approval to extend its activities to include "procurement of stock", It is doing this by taking "a 50 percent interest in Manawatu Beef Packers Ltd who own and operate a beef processing plant at Fielding (which includes approximately 20 hectares of rural land). Five Star Beef now propose to become actively involved in the procurement of stock for the plant."

According to a recent advertising feature in the Press (7 September 1992), "Five Star Beef owns New Zealand's first large scale beef feedlot, located at Wakanui, 17 kilometres east of Ashburton, It is designed to supply high quality beef to the Japanese market, where 75 percent of consumer beef is grain fed .... The current capacity is for 10,000 head of cattle, which is expected to be increased by a further 5000 head within two years, with a target of 30,000 by the end of year five.

"Steers, which have been TB tested, are brought onto the site aged between 15 and 24 months at a live weight of about 425 kilograms. They are slaughtered six to eight months later at about 650 to 700kg liveweight. The cattle eat when they feel like it from a feed of barley, maize, silage, maize grain, hay and straw." The advertising feature was to announce that Owens Coolair (part of the Owens Group) is expanding its airfreight chiller facility at Christchurch Airport for the exclusive use of Five Star.

Five Star is another example of overseas importers taking control of the producer (see also the Brooks example below). According to the feature, Itoham is "one of Japan's leading meat distribution companies". The Listener (May 18, 1992), reported that ANZCO sought out Itoham "to assure smooth access and control to the shop shelf. The joint venture was first announced in March 1990 (Press, 13 March, 1990)

How the mighty have fallen - from banks to piggeries. State Bank of Australia (SBSA), having being forced to divest itself of the United Bank due to its near insolvency (see May decisions) is instead acquiring three piggeries. They are owned by the Huntington Trust which owes money to SBSA, forcing it to give the piggeries to a SBSA subsidiary, Navit] Properties Ltd in settlement of the debt. The piggeries are the

19.2883 Clearview Piggery, Tawa Road, Kumeu, the 12.7071 hectare

Hillcrest Road, Kumeu, the 7,3026 hectare Churchill

Cust, see an importer of goods, to guarantee their supply by buying out the producer. This is the same relationship colonial Zealand had with Britain when

virtually all export meat was processed exported by British owned meat companies

for British consumers. "Mr RE. is a major participant in the U.K meat cutting

industry. His company, Ltd is one of the largest processors of

New Zealand sheep meat in the and wishes to expand into venison processing.

The property is being acquired to ensure that New Zealand deer in the appropriate

condition are readily available "

In other rural land sales, a Aotearoa citizenship who intends to

return permanently to Aotearoa, is hectare rural property, comer

State Highway 63 Bedford for $526,000 to tum into a vineyard.

An Australian company, Kupa Investments Ltd, through the Lindsay Goldsmith Farm Trust is buying a 255,5836 property at 60 Ohm Mountain Road, Clevedon for approximately $1 million; it "intends to develop the farm further and invest substantial capital in the and other facilities." A U.K. citizen "who wishes to extend his viticultural interests has been allowed to set up a company, Campos Wines Ltd, to buy a vineyard at Te Kauwhata (the price was deleted from the decision sheets by the Ole), which will be run by its current manager.

The Numakura family (see June decisions) is buying Cordova Holings Ltd, the owner of a 12.956 hectare cherry farm on Wairau Plains, Marlborough. This is the second cherry farm to pass into Japanese ownership with the OICs approval. In December 1990, All Nippon Airways took 50 percent ownership of another

Marlborough cherry farm in order to control of the export of the cherries.

Three U.S. citizens, through their company Farms Ltd, are acquiring a further 240.404 hectare farm at Summerhill, Rangiora for $469,687, They had previously acquired two other properties totalling 162 hectares in the Oxford area (see April decisions: Rebecca Acres Ltd). They now claim this property (most of which they have owned since 1989) is uneconomic. "It is claimed that the joint farming of the two

properties will create an economic resultant benefits."

A number of subsidiary Associated Ltd (FAL) Corporation (see Magnum Corporation Rattrays Properties

New Zealand Ltd, acquiring Countdown percent by Mungam iOgaUU!S Brierleys divested itself

50 percent owned by Malaysia (itself 50 percent

were set up this month for use by Foodtand

to out the takeover of Mag n u m

(NZ) Associated Ltd,

Ltd, Rattrays Wholesale Ltd, Countdown Foodmarkets of FAL New Zealand Ltd is in tum which was previously owned 54

company set up to control Magnum when Magnum February 1991. Mungam is

by Pacific Breweries Ltd of

The owner of pharmaceutical U,Ko~owned Clarges Other subsidiaries affected are:

Ltd, Glaxo

Pharmaceuticals

Index to June, July 1992 Decision Sheets Index compiled by CAFCA

Eight deletions were made from decisions by the OIC from the June 1992 release, and none were altered. Twentyfive were released.

Six deletions were made from decisions by the OIC from the July 1992 release, and none were altered. Twentyfive were released.

CompanylIndiyidUiil

Allen and Hanburys (NZ) Ltd (U.K.) Allflex Holdings Ltd (France)

Alliance Textiles (NZ) Ltd

Alten Holdings Ltd (Taiwan)

ANZCO Developments Ltd (Japan) Ashburton, Barfood Rd, 245.3507 ha. farm

Asia Pacific Breweries Ltd (Malaysia, Netherlands) B. Brooks (Norwich) Ltd (U.K.)

Beccadon Holdings Ltd (Japan)

Billmack Holdings Ltd (Japan)

Blenheim, em Stale Highway 63fBedford Rd, 68.3767 rural property Bora] Industries Ltd (Australia)

Boral International Pty Ltd (Australia) Brierley Investments Ltd

Brooks, B.E., S.A., K.A., and S.J. (U.K.) Bryan, Mr

Buckcorp Holdings No. 62 Ltd (U.K.) Byron Street Properties Ltd (Australia)

Cambridge, comer Peake and Bruntwood Rds, 22.4904 ha. dairy farm (U.S.A.) Campos Wines Ltd

Canterbury, Cust, 95.5057 ha. deer farm (U.K.) Central Office Park Ltd (Singapore)

Chapman Properties Number One Company Ltd (Singapore) Christchurch Cutstock Ltd (U.S.A.)

Christchurch, Johns Road, 2.0856 ha. industrial property

Churchill Piggery, Cable Road, RD 1, Waimauku, 7.3026 ha. rural property Clarges Holdings (NZ) Ltd (U.K.)

Clearview Piggery, Tawa Road, Kumeu, 19.2883 ha. rural property Clevedon, 600tau Mountain Road, 255.5836 ha, farm (Australia) Cooke, Mr and Mrs

Cordova Holdings Ltd (Japan)

Countdown Foodmarkets of New Zealand Ltd (Australia) Countdown Properties (Hamilton) Ltd (Australia) Current, Tamara (U.S.A.)

Cust, 4.0595 ha, rural property (Australia) Cust, Canterbury, 95.5057 ha, deer farm (U.K.) Dancette Holdings Ltd (Australia)

Dannernann, D. (Germany)

Douma Farm Lid (Netherlands)

Douma, Mr T. and Mrs JMS (Netherlands) Effem Foods Ltd (U.S.A.)

Elwell, Graham Michael and Christopher Paul (U.K.) FAL New Zealand Lid (Australia)

Five Star Beef Holdings Ltd (Japan)

Foodland (NZ) Holdings Ltd (Australia)

Foodland Associated LId (Australia)

Glaxo New Zealand Ltd (U.K.)

Goh Cheng Liang (Singapore)

Gulf Harbour Estates Ltd

35

Date Page
Jul92 93
Jun 92 52,54
Jun 92 51
Jun 92 65
Jul92 88
11.1192 87
Jul92 81
lul92 90
Jun 92 56,64
Jun 92 74
11.1192 83
Jun 92 55
Jun 92 55
Jul92 81
Jul92 90
Jun 92 68
Ju192 90
Jul92 78
Jul92 82
Jul92 88,89
Jul92 90
Jun 92 53
Jun 92 53
Jun 92 68
Jun 92 68
Jul92 80
Jul92 91-95
Jul92 80
Jul92 83
JUIl 92 70
Jul92 85
Jul92 78
Jul92 81
Jul92 86
JUIl 92 61
Jul92 90
Jul92 79
Jun 92 59
JUIl 92 69
Jun 92 69
Jul92 82
Jun 92 50
JuI92 76,81
Jul92 88
Jul92 75
Ju192 75-78,81
Ju192 91-95
Jun 92 60
JUIl 92 60 Gulf Harbour Investments Ltd Gulf Harbour lAd

Gulf Harbour Marina Ltd

Harden House No.2, Paremoremo, 4 ha. rural property (U.K.)

Hawkes Te Konini Farm, 281.8585 hectare farm (U.S.A.)

Heal Containment Industries Ltd (U.K.)

Hillcrest Piggery, Hanham Road, Kumeu, 12.7071 ha, rural property Hind Hotels International Ltd (Singapore)

Ching-Yuan and Wei-Hull (Taiwan)

Huntington Trust (Australia)

IEL (New Zealand Holdings) Ltd (Australia) Industrial Equity Ltd (Australia)

Itoham Foods Inc (Japan)

Jhunjhnuwala, CL., S.S., and L.N. (Singapore)

Kaipara Peninsula, South Head, 247.3488 ha, mixed pastoral farm (Taiwan) Kumeu, Clearview Piggery, Tawa Road, 19.2883 ha. rural property

Kumeu, Hillcrest Piggery, Hanham Road, 12.7071 ha. rural property Kumeu, North Auckland, State Highway 18,4.3490 ha. kiwifruit orchard Kupa Investments Ltd (Australia)

Lindsay Goldsmith Farm Trust (Australia) Little. G.F. and Y.V. (Australia)

Loburn, 2.4179 ha, rural property (Australia) Magnum Corporation Ltd (Australia) Manawatu Beef Packers Ltd (Japan)

Mangatoki, Taranaki, Eltham Road, 6.6754 ha. rural property (U.K.) Marlborough, Wairau Plains, 12.956 ha. cherry farm (Japan)

Marley (Overseas) Ltd (U.K.)

Marley Company (NZ) Ltd (U.K.)

Marley International Ltd (U.K.)

PIc (U.K.) Mars Inc (U.SA)

Mirabelle Investments Ltd (France) Mitsui, Mary Elizabeth (U.S.A.)

Crucible Company Plc (U.K.) Morgan Crucible Holdings (NZ) Lid (U.K.) Holdings LId (Malaysia)

Naviti Properties Ltd (Australia)

Nestle New Zealand Ltd (Switzerland) Nestle SA (Switzerland)

New Zealand Meat Board

Ltd (Australia) Lid (Australia)

North Auckland. State Highway 18,4.3490 ha. kiwifruit orchard

NRM Feeds LId l4oU;"W"Wj

Haruhiko. Kazuko, and Hideyuki (Japan) Haruhiko, Kazuko, and Hideyuki (Japan) Pharmaceuticals Ltd (U.K.)

Pacific Magazines and Printing Ltd (Australia) Patios, Anthony

P'H','m{\rp,mn. 4 ha. rural property known as House No.2, Harden Farm (U.K.) PaulweU Farms Ud

Peter Stevens Lid Phangan Ply Lid

Piton Ltd (Netherlands)

Ltd

48.6736 ha, property

204.404 ha. farm (U.SA)

Ltd

Jun 92 60
Jam 92 60
Jun 92 60
Jun 92 57,62
Jun 92 70
Jun 92 47
JuI92 80
Jun 92 53
Jun 92 65
Juin 80
Jun 92 71-73
Jun 92 71
Juin 88
Jun 92 53
Jun 92 65
Jul92 80
Juln 80
Jun 92 56
Ju192 83
JuI92 83
Jul92 87
Jun 92 61
Jul92 75-78,81
Juln 88
Jun 92 50
JuI92 85
Jun 92 66,67
Jun 92 66,67
Jun 92 66,67
Jun 92 66,67
Ju192 82
Jun 92 52,54
Jun 92 70
Jun 92 47,48
Jun 92 47,48
lul92 81
Ju192 80
Jun 91 54
JUIl 92 54
JI1192 88
Ju192 79
Jun 92 73
Jun 92 56
Jun 92 61
Jun 92 56,64,74
Jul92 85
Jul92 95
JI1192 79
Juln 88,89
Jun 92 57,62
Jun 92 50
Jun 92 68
Jul92 87
JUIl 92 69
Jun 92 61
Jun 92 63
JUIl 92 68
Ju192 86
Jul92 77 Rattrays Properties Ltd (Australia) Rattrays Wholesale Ltd (Australia) Rustwel Sl Company (Australia)

Seafield, 5.9764 ha. rural property (Australia) Seresin, M.S. (U.K.)

Sevenoaks B.V. (Netherlands, U.K. owned) Smith, Mr and Mrs (U.S.A.)

Societ, Franaise D'Innovations Pour L'_levage (France) Southland, 194.6832 ha. sheep farm (Netherlands)

State Bank of Australia (Australia)

Story, Mark (U.S.)

Stuart Phoenix Company Ltd (U.K.) Sumitorno Corporation (Japan) Summit Wool Spinners Ltd (Japan) Swenson, Rebecca and Case (U.S.A.) Tamara Farms Ltd (U.S.A.)

Taranaki, Mangatoki, Eltham Road, 6.6754 ha. rural property (U.K.) Te Kauwhata, Moorehouse Road, 9.2849 ha, vineyard (U.K.)

Te Konini Farm, Hawkes Bay, 281.8585 hectare farm (U.S.A.)

Te Konini Farm Ltd (U.S.A.)

Terrassen Holdings BV (Netherlands, Ll.K, owned)

The Glaxo Foundation for Medical Education Lid (U.K.) Time Warner Cable New Zealand Holdings Ltd (U.S.A.) Time Warner Entertainment Company Ltd, L.P. (U.S.A.) Transact Computing Ltd (U.K.)

Waiheke Island, 2.7 ha, rural land

Waimauku, Churchill Piggery, Cable Road, RD 1,7.3026 ha, rural property Wairau Plains, Marlborough, 12.956 ha. cherry farm (Japan)

Warilda Pty Ltd (Australia)

Wattie Industries Ltd (Australia)

Weston, S. D., Mr and Mrs (U.K.)

White Winler Two Ltd (U.S.)

Compiled by:

Campaign Against Foreign Control ofAotearoa, P. O. Box 2258,

Christchurch.

'" Address for submissions on Bulk Water Exports

Hon Denis Marshall Minister of Conservation Parliament Buildings Wellington

Jul92 77
Jul92 76
Jun 92 72
Jun 92 61
Jul92 83
lUI1 92 66
JUI1 92 68
Jun 92 52
Jun 92 69
Jul92 80
Jun 92 63
Jun 92 57,62
Jun 92 51
JUIl 92 51
]u192 86
Jul92 86
JUIl 92 50
Ju192 88,89
Jun 92 70
Jun 92 70
Jun 92 48
Jul92 94
Jun 92 46
Jun 92 46
Jul92 92
Jun 92 59
Ju192 80
Jui92 85
Jun 92 71·73
Jun 92 61
Jun 92 57,62
Jun 92 63 required,

For further Information contact Eugenie Sage in Christchurch phone

251 or Miner in Franz Josef phone (03) 752 0747

37

10).14 C

E

T

y

s

INCORPORATING NATIVE FORESTS ACT/ON COUNCIL AND ENVIRONMENTAL DEFENCE SOCIETY

Wanganui

2 October 1 992

Dear WATCHDOG

Your last blast at the Maruia Society and Guy Salmon has finally goaded me Into a reply. I t seems that before your editor works himself up Into too much of a lather some accusations should be answered.

The reference to sale of lifestyle blocks to foreigners in Gwenny Davis's letter to Jim Bolger was an ambiguity that did cause some concern. The National Executive has yet to take a decision on tenure. Our policy was, and stlll is at this point, that the sale of leases of lifestyle blocks would provide a form of income to provide for the management of the High Country.

Our concern in this as in all of our poltctes is how to best provide for sustainable management. This usually means careful consideration of all options and their effects on the environment whilst always having a special regard for the needs of people. I'm sure that CAFCA would be pleased that rtaruta's success in the South Pacific is through its sensitive and fair dealings with indigenous customary landowners.

Perhaps CAFCA could assist our public relations campaign by praismq our lobbying for an indigenous forest policy that combines protection of privately owned indigenous forest with a recognition of te tino Rangatiratanga for the Maori landowners who own the greatest proportion of this forest.

The jury is still out about the long term sustainability of planted exotic forests. Indications are that Pinus radtata plantations can be managed in an environmentally sustainable way but obviously ongoing research and monitoring will be necessary. It is surely naive and simplistic to turn our backs on the world demand for wood and need for C02 sinks, and condemn plantation forestry.

But finally. yes we do talk to, dare I say it, industrialists; people in corporations and, shame on us, even people in the National Party I guess jf that means that we have become rabid new rightists by your definition so be it. After all, as Guy said, we are looking for the support of people who want rising incomes and employment, social equity and the Improvement of the environment to go forward together. This means communicating with and having an influence over all sectors of society. .

Richard Thomason

Facilitator, National Executive.

38

Elsie Locke.

For some people, the peace movement began and ended with the successful mass campaign to bar entry to nuclear warships. They therefore might be puzzled

this book finishes with the 1975 Muldoonslide. But the strength of Elsie Locke's achievement is precisely to document the long and deep rooted history of the peace movement in New Zealand. She takes it back into pre-European Maori history, and it is entirely appropriate that her first "peace person" should be Te Aokapurangi, who won an undertaking that any of her people who passed between her thighs would be spared. By sitting astride the ridgepole of the meeting house, she saved the lot. Women have always played a central role in the NZ peace movement, and indeed the 19th century wornens' suffrage movement was closely connected to it.

Elsie Locke personifies these women. She is no disinterested historian. This is very much her life story, and she writes herself into the text, whether as a long time Communist Party member (she left in 1956), a lifetime activi st in both the peace and wornens' movement, a founder of CND, or a distinguished writer. Now aged 80, she is still very much a fixture of the Christchurch peace movement and a longtime active member of both CAFCA and the ABC. She still bikes everywhere, like all sensible people. Woe betide anyone who mistakes her for a little old lady.

It has an unapologetic Christchurch bias, which just proves the long standing strength of the peace movement here. Christchurch institutions, such as the "Monthly Review" are quoted throughout

Some of the peace people have been previously well documented eg Te Whiti, but others are a revelation, such as the pre-WWl conscription resisters who ended up in military detention on Ripapa Island, in Lyttelton Harbour. And the book makes plain the honourable role that unions have always played in the peace movement. In the US, hardhats attacked Vietnam War protestors. Here, unions were a key element of the successful anti-war movement of the 60s and 70s, and the boot was 011 the other foot. The most dramatic photos show the Lyttelton seamen flattening a bikie gang (led by "Filthy Phil") foolish enough to attack a 1969 Christchurch rally. Indeed, the seafarers and maritime unions were central to both the anti-war and anti-nuclear campaigns, light through until the mid 80s.

The book is lavishly illustrated, which is probably it's greatest strength. And the photos are quite often a revelation. It's great to see Ron Smith, veteran Wellington peace activist, leading a 1948 anti-conscription march carrying an NZ flag. It's also a sobering sight to come across a 20 year old photo of a painfully thin me, placard hand, flanked by the young doctors, Rosenberg and Christie, resplendent in hair and headbands. This is a personal history for me, as well, and indeed both CAFCA and the ABC grew out of the anti-war, anti-bases movement of the 60s and 70s. This is our Book of Begats- PYM begat various ad hoc groups which begat CAFMANZ which begat CAFCINZ which begat CAFCA (which begat CDH which beg at ABC). quote Elsie: "Since then, CAFCA has retained its' unique blend of research, education

itself and others, and action where appropriate, always with the aim a truly

independent New Zealand" ,

Putting this scattered history into one book also leads to one conclusion- by and large, the peace movement, in this country, has been successful. It's not just, and never has been, an isolated handful of crackpots. It reflects something central to the New Zealand character. It's always had to battle the overt militarism and colonial bootlicking of those in power, but essentially it's won. That doesn't mean we should relax, far from it, but history is on our side. This book proves

One of our favourite peace people is Bob Leonard, the subject of Murray Horton's lengthy profile in "Watchdog" 70. That stated that his only peace-related international travel was to a 1986 international conference in Athens.

Well, in April this year (after the profile was written), Bob went to the States to attend the wedding of one of his sons (from his first marriage). Whilst there he took an active part in the lOOth Monkey Event to End Nuclear Testing. This was a mass action, involving thousands of people camping out in the Nevada desert. Several hundred were arrested; a few for repeatedly penetrating to the very heart of the underground test site. All we learned of it in the NZ media was the surreal footage of one of the protestors snatching a crystal eagle from the hands of a typically befuddled Ronnie Reagan, (at an award ceremony), smashing it, and being crashtackled by the mortified Secret Service goon squad whilst trying to deliver an anti-nuclear speech. We hasten to add that Bob was not one of those arrested, and indeed, family commitments took him back to California, before the real fun began.

Bob's full report on this event appears in the latest "Peace Researcher" (32, August 1992). We recommend that our members subscribe to it. 4 issues per year for $NZ12; $NZ20 p.a, airmail to Australia; $NZ25 p.a. airmail elsewhere. An inquiries to:

Box 2, Lincoln University, Canterbury, NZ.

40

THE GULLIVER FILE

Mines, people and land: a global battleground

Roger Moody. Minewatch, 218 Liverpool Road, London Nl lLE, UK. 894 pp. 150 pounds, plus 16 pounds p&p. 25 pounds for NGOs.

-Murray Horton Many CAFCA members met Roger Moody when he toured the country in 1990, and many also bought his excellent book "Plunder", when we and PARTIZANS published it in mid 91 (we've still got a few copies left).

"Gulliver", Roger's latest work, is unlikely to have such a wide circulation. It is of Biblical proportions, and an astonishing price (nearly $NZ500; even the "cheap" price for NGOs is over $NZ80. But it is offered free to indigenous groups). It is intended to be an encyclopaedia of mining companies, and because of the range of those, it is actually an all-purpose encyclopaedia of a good many multinationals. It has a heavy emphasis on the insidious uranium industry. But if you wish to learn only about RTZ/CRA/Comalco, then stick to "Plunder", because "Gulliver" adds nothing new to it.

"Plunder" was aimed at the general reader, with extensive illustrations and a giveaway price. "Gulliver" is a reference book, hardback, unillustrated (except for diagrams showing the ownership of companies), and absolutely jampacked with information. It is a daunting read (and yes, I did read the whole bloody thing), but it is fascinating. Nor is it boring by any means. It is pervaded by Roger's very English sense of whimsy eg a careful study of the ownership diagram for RTZ reveals that 0.0000018% of it is owned by PARTIZANS (People Against Rio Tinto Zinc And Its Subsidiaries).

The title comes from a quote from a US mining boss: "Like Gulliver, the mining industry is a robust giant held down by a million silk strings" . And if there is one distinguishing characteristic of mining on every continent, it is the enormous opposition that it attracts. This is, of course, true in this country. The heroic battle by Coromandel people for over a decade is the best illustration of that. (There is extensive Aotearoa content throughout). Bougainville is the most extreme example, a people who went to war to rid themselves of an insufferable mining multinational (our old mate, CRA). But in Europe, Canada, the US, Africa, Australia, and Asia, local people have employed varying levels of struggle, both legal and direct action, to stop mining companies tearing their world inside out.

Writing this book took over 14 years, and it shows. In many of the company entries, the most recent information cited is from a decade ago or earlier. It would be impossible to update all these 672 company entries for a book, so Minewatch has now set up a global monitoring project (MINGUL). But don't get the impression that it's out of date. The most recent data in many cases is from 1991 ( I found a Philippine clipping I sent Roger, from Manila, when I lived there last year), Roger astonished New Zealanders with his knowledge of all aspects of mining when he toured here. In 2 weeks of travelling with him, I never heard the same speech twice. For light reading, he took CAFCA's bulging mining file, and put it into order.

Inevitably, with a book of this sheer magnitude, there are minor factual errors.

Our readers can rest assured that this newsletter has never been called "Energy Control Watchdog"; all references to the "Press" locate it in Wellington. But these are mere quibbles. It can be read in ad break chunks (there are a lot of short company entries), or as a series of books within a book. For instance, the appalling story of Australia's uranium industry. featuring desecration of Aboriginal land. and betrayal by the Labor Party. Or the murderous history of goldmining in South Africa, and the heroic rise of black unionism there. It can also be read as individual chapters within those books within a book. A study of RTZ can be broken down into Bougainville copper, Rossing uranium, or Comalco aluminium.

There is a lot of eyeglazing technical material in it eg some companies specialise in processing disgusting sounding things called gold slimes. Equally there is

41

fascinating material that I previously knew nothing about, such as the inhuman conditions in the Niger uranium mines. It is Roger's strength as a writer that he can transcend the format of an encyclopaedia, convey the whole global sweep of this most disruptive of industries, and catalogue the equally global opposition to it.

The conclusion to his introduction is disarmingly frank: "A work that has taken one and a half decades to come to fruition not only pays conventional costs: some outdatedness, galloping inflation, changes in the potential audience, loss of original enthusiasms. There are also hidden prices to be paid- battered reputations, conflict over disbursement of dwindling funds, and even loss of longstanding friendships. In answer to the inevitable question- 'Was it worth it?'· my own answer has to be: 'No'. Those less closely connected to 'Gulliver' will evaluate it on other grounds and, I hope, may give a more positive response" .

I can definitely give it a positive response. It will never be a bestseller, nor, unfortunately will it reach a general audience. But it is invaluable as a reference encyclopaedia. It will become the Bible of those fighting rapacious mining multinationals the world over. Roger Moody deserves a medal (or at least a lifetime supply of his weaknesses, Guinness and cigars) for tackling this sanity- threatening task. Having sucked out their profits, the mining companies leave us with the polluted rivers, tailings dams, and ugly great holes in the ground. This doorstop of a book is worth its weight in uranium for the central role it will play in the battle to assert that we want an Earth to enjoy, not something that looks like the arse end of the Moon. And, I have no doubt that, employed at close quarters. it could flatten any miner who gets in the way.

Review

Canada in Crisis

Take Back the Nation, by Maude Barlow and Bruce Campbell, Key Porter Books, Toronto, 1991.229 pages.

Reviewed by Bill Rosenberg

"Canada faces extinction as an independent nation. It is threatened by the effects of the present government's destructive policies: crisis levels of unemployment and poverty, deep cuts to the economic base, sustained attacks on social programs and cultural institutions ... " begins this book (p.1).

This is interesting stuff in its own right, but what makes it fascinating to a New Zealander is that, with only a few changes in emphasis, the picture painted here of Canada today is like an good forgery of the Aotearoa canvas we know too well. That fact tells us something important: that our crisis, and Canada's crisis, and the crisis present in nations around the world, is due to global trends, not simply to bad government or some recycled nineteenth century economic theory. Accordingly, there is a lot to learn from the experience of Canadians and other peoples.

Recognise the following trends?

"The Canadian economy has been going though a profound crisis during the last three years, by many measures the worst since the Great Depression of the 1930s. We are witnessing a rapid deindustrialization, One manufacturing job in five has disappeared, and manufacturing employment has dropped from 17 to 15 percent of our workforce since 1988, the lowest such rate in the industrial world." (p.10)

"The current economic crisis is no accident. It is the planned consequence of policies executed since 1984 by the Conservative government in alliance with big business, in order to change radically the Canadian economy. Brian Mulroney, his Tory cabinet, and the Business Council on National Issues (BCNI), the cabinet of big corporations led by Thomas d'Aquino, set out to transform the Canadian economy from a distinctly national

42

to a States.

one

an

United

"The sector found government of Brian Mulroney clearest and most

committed of its interests of any Canadian government history. Indeed,

Brian Mulroney promised at the beginning of his mandate to 'remake a Canada that would be "unrecognizable".' (p.Ll)

The BCNI is the Canadian counterpart to the Business Round Table: "The BCNI is the single most powerful economic and political body in the country. More than a third of its members are foreign, mainly U.S.-owned, and include some of the most powerful transnational corporations in the world. Whether they are Canadian or foreign, their first loyalty is to business and their own survival and growth within the global economy. Any loyalty to Canada or to a national market is, at best, secondary." (p.Ll )

The "Conservative/corporate action plan to dismantle the country" is:

"1. Tie the Canadian economy by a free-trade agreement to the most powerful economy in the world, in which the corporate sector controls the government's agenda and an unfettered 'free-market ideology' is firmly entrenched ... Say the agreement will make Canada stronger. Say it will create jobs.

" ... Force 'economic restructuring,' Le., cut jobs. Force 'alignment of cost structures,' force wages, weaken union bargaining power, force down labour laws and environmental standards, force down taxes, force down government spending on social programs, etc."

"2. Use monetary policy, that is. interest rates and exchange rates, to speed up restructuring. To weed out 'weak' companies, accelerate the loss of jobs and the downward pressure on wages by speeding up import competition and creating a recession ...

"In name the deficit, use high interest rates to increase the deficit.

Focus public attention on the urgency' to reduce the deficit as a smokescreen to hide the slashing of public spending.

"3.

ill tax subsidies

high-income camel'S and large corporations ....

"4. Cut back social programs, especially the universal ones.

targeting them most...

it in the name of

"5. In (GST) and high

name of fighting inflation, strengthen measures such as sales tax rates which actually increase inflation ...

to the the economy ... n

public-sector enterprises. Return them at attractive prices shares to high-income Canadians. Deregulate sectors of

"7. Bring all these policies in the name of international competitiveness. Say

competitiveness will bring more jobs and greater prosperity, but be vague about when.

Also say that, to competitive, Canadian workers have to reduce wages and social

protections.; 1

the position of Maori: "The crucial issues for include the settlement of legitimate claims, selfself-sufficiency. None of these is possible under the institutionalizes dependency. Inclusion of the

is an absolute requirement for successful constitutional

" ( p.

government, paternalism aboriginal talks, as is a

The relationship between Canada and the USA has always provided a revealing magnification of the relationship between Aotearoa and Australia. Though Canada is regarded as one of the big economic powers, in fact the imbalance between it and the US is considerably greater than between us and Australia. Though our government is trying hard even we cannot yet make a statement like

"Canada is the most economically occupied country in the industrial world; no other country even comes close. More than half of our manufacturing sector is under foreign control." (p.9)

though we can sympathise with

"We have learned from years of experience that, left to their own devices, foreign corporations may act contrary to Canadian economic interests, destroying more jobs than they create, and killing off Canadian competitors. They import more, export less, and are less likely to use local suppliers than are Canadian firms. Three-quarters of U.S. exports to Canada are transfers from U.S. parents to their Canadian subsidiaries, rather than exchanges on the open market" (p.9)

Where we have CER with Australia, Canada has something even more dangerous: the Canada-U.S.A. Free Trade Agreement (Fl' A) - recently (after this book was published) extended to NAFTA, the North American Free Trade Agreement, which includes Mexico. Ff A was established with the Uruguay Round of GATT in mind: it is constantly used as a model for what the Uruguay Round would bring to the whole world. One of the fascinating aspects of this book is the analysis and examples it gives of the devastating effect Fl' A is having on the economy, culture, political system and sovereignty of Canada.

The major problem Canada has that we don't have to face is the relationship between the English and French speaking parts of the country. The relationship between Quebec and the rest of Canada is a major sub-theme of the book.

The second half of the book goes into considerable detail on changes the authors consider would help "take back the Nation". The chapters are called "A Constitution for all Canadians", "Economic Renewal", "The Restoration of Responsible Government". The detail here is very Canada-specific - its sense is hard to judge from this distance. Certainly it is radical only insofaras it dares to assume that Canada can survive as a sovereign yet diverse, multicultural nation. So the main interest in the book for nonCanadians is in the facts and the analysis of the first half.

The authors are active in the Council of Canadians - Maude Barlow is the national chairperson. The Council is "a non-profit, non-partisan national organization devoted to the enhancement and preservation of Canadian sovereignty." CAFCA now has an exchange agreement with them. An allied group is the Action Canada Network: "a coalition of forty major organizations formed to fight the free-trade agreement and the corporate agenda." Bruce Campbell is a research fellow at the Canadian Centre for Policy Alternatives. The book is quite open in its advocacy of a position: it is a call to action to Canadians. It would be improved with more factual examples, sources, and an index.

even to non-Canadians this is a thought-provoking work, helping to put our own problems in a world perspective, helping to think about solutions.

The Council of Canadians: 1006- 251 Laurier Avenue West, Ottawa, Ontario, Canada KIP 5J6.

Action 5J6.

904 - 251 Laurier Avenue West, Ottawa, Ontario, Canada

CURNOW When Comes Such Another?

edited Mary Brett. CCJPD, Box 2450, Christchurch. 95pp. $10

-Murray Horton This little booklet of contributions about the late Father John Curnow was launched on the first anniversary of his death, and with it was launched a Memorial Trust in his name.

It is simply a book of recollections and reflections on his life and work, by an extraordinary variety of contributors, both local and international.

John was a CAFCA member and my obituary of him was published in "Watchdog" 68. It appears in this booklet. Indeed I was highly startled to find myself appearing in a publication alongside Mother Teresa. Strangely enough, mine is the only contribution that covers the central importance of the Philippines to John. Indeed he was so highly thought of there that a memorial service was held for him, in Manila, which I was privileged to address.

John was a loyal Catholic priest all his life, and this is reflected in the extensive range of contributions from both laity and clergy. My only criticism of the booklet (and the launch) is of a sometimes disturbing trend towards canonisation (which offends my long dormant Protestantism). John was no plaster saint. Nor am I sure he would have been comfortable being described as a prophet (mind you, it's a welcome relief from Catholics like Bolger who tell us to worship Profit).

Some of these contributions are familiar indeed. It seemed that every time I opened a movement publication in the latter half of 1991, I encountered Jim Consedine's "We buried John Curnow the other day". On the other hand, I learned an awful lot about John's family background, personal life, and aspects of his truly global work from many of the others. I'm not sure what the animal liberationists would think about his enthusiastic humin', shootin' and fishin'.

For my money, the funniest story comes from Cardinal Tom Williams. "John's quirky sense of humour came to the fore one afternoon when we were at Castetgandolfo for a Papal Audience with Pius XII in the court-yard. After the gathering, John mentioned that he had attended events frowned upon for clerics by Church authorities at that time: he had attended a bullfight in Spain, the opera in Rome and had a fling at the Casino in Monte Carlo.The only thing I haven't done is to have a beer with a nun in a pub. Can you arrange it?' I did and John was content? even if a couple of the Sisters I persuaded to join him settled for a pot of tea".

John Curnow inspired love, respect, admiration and fear, depending on which side of the fence you were on. As both a man and a priest, his choice was clear: both at home, and on every continent, he stood shoulder to shoulder with the poor. He was simpleminded enough to take Christianity literally. For that reason, he made an indelible impression, and was one of the most influential of New Zealand's Catholics. This little booklet goes some way towards explaining him, and will have to do until a proper biography can be written.

If all Christians were like John, I might never have dropped out of Bible Class.

OBITUARY:

Piggy

-Murray Horton

recently seen Returns", I have reached two conclusions about

Muldoon. Firstly, had he lived, he could have capitalised on his

45

thespian success in "The Rocky Show", and played archvillain Pigman in the next sequel ("Batman Goes On The Super''Y). Secondly, now that he's dead, Danny De Vito is the obvious choice to portray him in the inevitable TV miniseries.

Following the death of any tyrant, there is a process of collective relief, forgiveness, and sanctification (but at least we get it over with quickly. It's taken Imelda 3 years to bury Ferdinand). But I'll have none of this posthumous conversion of Piggy into a Dear Old Soul, or, God help us, an elder statesman. The man was Pig by name and pig by nature. Ask any of the legions who ever crossed him, in reality or in his dyspeptic imagination.

Piggy was a caricaturist's dream (or an undertaker's nightmare, depending on your point of view). It was fascinating watching him mutate into post-atomic man as he ascended to power, until finally he looked and acted like a warlord in a Kurosawa movie. But he was acutely aware of being viewed as a tag wrestling baddy, and like his TV counterparts, he incited the baying mob to focus its' rage on him. Because he could take it, and while it was all directed at him, the yesmen, nohopers, cowards and drunks he surrounded himself with got off scotfree (and still constitute the government).

The great weakness of the massive opposition to Muldoon was that it demonised him, and it personalised the whole issue. People truly believed that if Piggy skewered himself on his little curly tail, then all would be well in Godzone again. They voted for Lange in 84, precisely because he wasn't Muldoon, and instead they got Roger Douglas. (No danger of personalising the issue there- Douglas didn't have a personality to start with).

I won't waste readers' time itemising the umpteen reasons why Muldoon, his political style, and his policies were a disaster for New Zealanders. You all

know them.

But, from a CAFCA perspective, there were good reasons to praise some of his policies. Forget all this nonsense about labelling him a "socialist". His version was more akin to "national socialism". No, Muldoon was a reactionary nationalist (and, by way of contrast, we define ourselves as progressive nationalists). He genuinely believed he was advancing the interests of ordinary New Zealanders; his boorish racism struck a responsive chord with many dinkum Kiwis (and I freely admit that I laughed at his riposte that New Zealanders who moved to Australia "raised the IQ in both countries"). He was lambasted in the media for ignoring the yuppie smartarses in Treasury. Well, we've had plenty of experience of the alternative, since then. And I'm prepared to believe that he was truly horrified at the mass unemployment started by his policies (he wanted it kept manageable).

He'll be rightly condemned for a number of landmark catastrophes. The Springbok tour; the pharaonic Think Big projects and resulting debt; the Mussoliniesque capitalism of the wage/price freeze; nuclear warships. But in his first term (1975-78), he actually pursued a number of policies that put him on our side. His insistence on a $10 per barrel levy on Great South Basin oil finds drove Hunt Petroleum back to Texas. He was the only NZ politician ever to tackle the Japanese, in the famous "fish for beef" battle. And while he fought his fellow yakuza, the gutless Bill Rowling ran round wringing his hands about this being no way to behave to a major trading partner.

And, most notably, he grabbed Comalco by the balls, and showed a singular reluctance to let go. They tried all their usual public and private pressure tactics, but Piggy hung on, finally forcing them to accept a power price increase of 350% (but not the 650% originally demanded). He spoke their language (total bloodymindedness) and remains the only man to have made them blink.I In comparison, they wiped the floor with Douglas, Prebble & Co in the 80s. The Rogernauts got rogered.) And, yet again, Bill Rowling ran round saying this was no way to treat a major investor.

Not that Piggy would ever admit that he was on the same side as us. When CAFCINZ published a pile of internal Comalco documents, in 1980, revealing the insidious methods the multinational used against his government, locally and internationally, his only response was to dismiss us as "fanatics". We can truthfully say we've been insulted by an expert.

Of course, Muldoon didn't continue his confrontational policy with multinational s and the gangsters who dictate trade policies. In his final two' terms, he

country New Zealand, Piggy bestrode the scene like a story to tell about him. I only ever encountered him

once, I spoke to a Harewood petition at a select committee

hearing 1 from him than from Helen Clark. Of course, he

had his own out how Deep is a glaring loophole in

the nuclear to watch his prej at work. "And what do

you do, . "Ah, yes. And what about you, Mr Horton?"

"I'm a buggered him. He sat up and took notice when I said we

were equally presence in NZ, including fisheries (which he'd

established, in joint ventures", he asserted. "Yes, Sir Robert, but

who gets He cackled the trademark cackle and turned to his

sidekick, "Write that down Merv", he ordered. So I

can claim to made Piggy on our only ever meeting.

There's one anecdote. One Christmas, in a fit of madness, the "Press"

features me to one of the "celebrities" invited to write about

whom we would most like to for Christmas dinner. I took them quite literally and

wrote that to have Robert Muldoon for dinner, with an apple in his

mouth. Funnily never published it. All too typical of the media's shameful

gutlessness when it came to a like Muldoon.

So 110 more you be as happy as a pig in shit (a very apt

metaphor for like a lot of pigs, you did a lot of damage. You weren't

as black as but only because that's not humanly possible. Personally,

I shall more boring in your absence. If you'd stuck to being

a stand up abusing and goring the audience, we all might

have been HCUJU".V'

and even

their image

consultant's" worst case he was bluntly

successors, didn't stab you the back. He told you he'd

U'-"AA'V"-' to do so. As he said he'd punched Roger

was Leader of the Opposition: "I saw a face, so I hit a sneaking regard for him as an honest enemy (whom I

was a was Minister regime. movement

a face that was a cartoonist's dream, died recently aged 79. He although he retired before Piggy became PM. Percy days of the interminable Holyoake/Marshall during the good old days of the protest

1972 demonstration at the since closed US Air overlooking Lake Tekapo (see "Peace People", by

cops and their dogs ran one schoolkid got

two other protestors got dog bites. Percy publicly because they had been throwing stones at the cops.

on the cock, no less) sued for libel. Percy, in a

an NZ Cabinet Minister, appeared 011 national TV to police never used dogs against demonstrations

a swag of Mt John demo files to us in the 80s (see

encounter with the sharp end of a police (pre-ACC), and settled out of court for $600; a son; remains a CAFCA member; and is the was defending its' planting of colonialism. Time

moves on,

-Murray Horton

"Republican").

for an organisation as CAFCA to go down the

racist road; to a the "Press" asking: "If you don't like little yellow bastards taking over our country, join us", I we'd increase our membership

substantially. But rest we

Firstly, racist reasons. And, my personal case, the hoary old

cliche "Some my friends are Asian" is quite true. My best friend is. I'm married

to her. Secondly, because it would be a politically unproductive move. Despite an

undeniable veneer NZ is basically tolerant I attended a packed

Sumner watched, fascinated, as the residents

discussed a proposal to tum a local into a Japanese "farm stay" resort Those few

speakers putting line ("Who won the war? They're different from us") were very firmly put in their place,

And most importantly, because Asian investment is not the biggest threat to NZ.

Nice, white Australians are far and away the biggest foreign controllers of the key

sectors of our Followed by equally white British, Americans, and Europeans.

Then, and then, Japanese, Taiwanese, Koreans, etc, get a look in. Because

the last two governments have stopped publishing statistics in this field, a lot of this stuff is not easy to easily find now. So the public relies on anecdotal evidence- "the Asians are taking

Well, they're not. Or, not to the extent that it might seem. But be that as it may, there are some peculiarities to Asian investment that are alarming, and do require strong opposition. It specialises, not in the productive sector of the economy, but in the high

profile tourist sectors. They can manufacture things cheaper and in greater

quantity much to their home markets. we offer wide open spaces, with

ridiculously lax on land ownership (even banana republics like the Philippines,

foreigners own land), So they can buy up farms, hotels, travel companies, souvenir

shops, skifields, golf courses.

golf courses, Take the recent Taiwanese trade and investment

mission that a week in NZ, Every member listed his or her golf handicap in the

publicity materia T,Y. Tseng, one of Taiwan's richest men, described himself as a

keen golfer, told the Taiwan New Zealand Development Corporation that he hoped

to buy or invest golf course during his first visit here. So we are viewed as one

big, green for the newly affluent bourgeoisie of the so-called tiger

economies,

If

acts with naked ladies and bananas, he goes to Macao, If he wants somewhere nice

and safe to bring and kids, comes to Queenstown, AU those things that (hey

can't get at home- snow, wall to wall sheep, cheap golf. And friendly natives.

But there is a much harder edge to this warm fuzzy image of contented Asian tourists. What else Asian capitalists want from us? To quote the aptly named Mr Minn Wan-kee, executive director the South Korean Chamber of Commerce and Industry ("Press"A/9/92), Korean firms want investment incentives, tax holidays, and

factories free unions. The Employment Contracts Act is not enough. "What

concerns us level in , This would be news to NZ

workers.

want NZ to be just like home. Cheap labour, NZ taxpayer should pay them to come or the unemployed in this country. Sooner or later you become

dinner.

POUf{ THE SERVICES YOU PROIIIDE.

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