BARRIER TO TRADE

Evening Post, Volume CXV, Issue 93, 21 April 1933, Page 12

BARRIER TO TRADE

BUKDEN OF EXCHANGE

EFFECT ON IMPORTS

FARMERS DISILLUSIONED

"It is inconceivable that, in the face of what has happened and what is happening the Government can justify another month's continuation of a policy which means stagnation in commercial and industrial circles and a steady disillusionment of the primary producer," said Mr. E. 11. Nimmo, Civic League and Ratepayers' Association candidate for the Wellington Harbour Board, in opening his campaign at Northland last evening. Mr. Nimmo strongly criticised the action of tho Government in raising the exchange rate, and said that the present situation of harbour boards in New Zealand was in a very largo measure due to the exchange position. "Granted that the- position of the Wellington Harbour Board is solid, that the policy is prudent, and that tho staff is highly efficient, the figures disclosed by last year's financial report give one food for thought; and the time has come to look at facts," said Mr. Nimmo. "Imports from overseas havo declined by over 27 per cent, and tho tonnage of vessels arriving has considerably diminished. HOLD-UP OF IMPORTS. "While recognising that to a certain degrco this is only to be expected as a result of the world's economic problems, I havo no hesitation in saying that the present position of harbour boards in New Zealand is in very large measure duo to tho misguided action of tho Government in artificially increasing the exchango rate. Tho Wellington Harbour Board is fortunate in not having a largo interest bill in London, but with all other "boards is badly hit by the illadvised, arbitrary, and unnecessary increase in tho exchange rate, causing a most serious hold-up.in the flow of imports to Now Zealand. "Merchants are suffering, disastrously in some cases, from the effect of this impost which has almost prohibited the interchange of commodities that, in the spirit of the Ottawa Agreement, we are in duty bound to purchase from the Old Land. Ships have been arriving in ballast, an economic waste that needs no elaboration, and as the finances of the Harbour Board are based in the main on charges on imports, high exchange has meant less revenue -for essontial maintenance and operation, and, the greatest tragedy of all in these difficult days, higher exchange has aggravated unemployment. The effect of this decrease in imports commences at the ship's side and spreads like a canker through tho community, -through transhipment, road and rail transport, and through the commercial houses'to tho public generally. "Tho immediato blow is upon the waterfront worker, whether ho is permanent or casual," the speaker continued, "and it would be well that they should realise that now that the export season is practically over we have to face a winter in which tho volume of imports will probably bo lower than for a decade past. "To every section of the community this question of high exchange is a vital one. Its' continuance will mean a reduction in all services and may commercially wreck the Dominion. I make no • apology for dealing with this question with tho gloves off. I admit that it is the duty of everyone to be'optimistic and'to endeavour .to engender confidence^ but as far as .this exchange .problem'is concerned it is futile to continue in a fool's paradise. Hard facts-and straight talking aro needed to shift tho present Government. FARMERS' CHICKENS COMING .HOME. "I have recently completed a tour I of Taranaki, Manawatu, and Wairarapa, in the course of which I havo discussed tho exchango question with sevjoral !-farmers. Some of them formerly would hear of nothing but high exchange, but on that trip not ono farmer with whom ■ I talked was in favour of a continuance of the policy. The .penalties are now I looming up heavier than tho supposed ! benefits.' JEven Mr. William Goodfellow, the recognised captain of the dairy industry and the representative of the dairy farmers at Ottawa, has suggested that the Government's raising of the exchange rate may be a breach of the Ottawa Agreement and is a cause of Britain's suggestion that tho Agreement should be departed from, in the direction of restricting tho amount of dairy produce sent to Great Britain. The dairy ' farmer, who particularly hoped to benefit, sees the chickens coming homo to roost. Tho New Zealand fruit grower is unhappy over Trance's action, for Trance has .imposed a penal duty on New Zealand apples to undo what ho had hoped for from artificial exchange, and tho open cheque from the already overburdened New Zealand tax payer to indemnify the banks has yet to be filled in. "While fully appreciating the courage of those who forced this policy oa the.country, by the samo token it is reasonable "enough to expect that they should now show the same courage by admitting the failure of a policy condemned'by facts and experience," concluded Mr. Nimmo. "As a candidate for tho Harbour Board I consider the exchange question of first importance, find I boliovo, that it is tho duty of the board, in'the interests of the port and city and .the Dominion as a whole, to hammer relentlessly at the Government until this selfish and throttling barrier to trado and industry is removed."