OPTIMISTIC VIEW

Ashburton Guardian, Volume 56, Issue 16, 31 October 1935, Page 3

OPTIMISTIC VIEW

PREMIER ON ECONOMIC FUTURE TRADE AND PRODUCTION. (Per Press Association.) NAPIER, October 30. A review of New Zealand’s economic conditions as they are to-day, and an expression of hope and confidence for the future, were gjven to delegates attending the Associated Chambers of Commerce Conference at Napier this afternoon by the Prime Minister (the Rt. Hon. G. W. Forbes), who travelled to Hawke’s Bay by rail ear, leaving immediately after his address for Shannon.

Reviewing what had been done in New Zealand, there was a tendency for people to say that nothing was being done,” said Mr Forbes. Trade figures for the year ended September 30, 1935, showed that exports totalled £43,359,000, and imports £35,387,000. Exports were certainly £6,000,000 less than in the previous year, but that was due to the less price paid for wool. Imports, on the other hand, had increased, showing that the purchasing power of the people was increasing. Regarding the cost of living, the Prime Minister stated that, taking 1000 in 1926 as the basis, the present figure was 839. The cost of living was therefore now well below the figure in 1926. The present figure was actually only 5 per cent, above that ruling in 1932, when tho exchange rate was raised to the present level. Position Hopeful. “To day we are meeting in a more hopeful position than for years past, said Mr Forbes. “We have had all the worry and disappointments., but we are now on firmer ground, and aie looking to the future witli greater confidence.” In many respects the depression lias been accentuated by pessimism, said Mr Forbes. Money had been held back from the development

of industries because of the apparent uncertainty of the future. It was essential that tho people themselves should look forward hopefully and optimistically to the future, and in this connection much responsibility rested upon such business men as comprised the Chambers of Commerce in New Zealand. “I know there were many people who thought we would never get out of the depression, but we are out in the sunshine again,” said Mr Forbes. Help From Science. The management of the dairy industry and the important effect of science upon this industry were referred to by Mr Forbes, who stated that the system carried out in New Zealand in tlie interests of the industry was not excelled in any part of the world. In regard to fruit also, science had had an important bearing, and in the system of chilled beef'export now in use, a new era for the development of this

trade bad been opened up for primary producers of New Zealand. He had personally seen the first shipment on the Port Fairey unloaded at Smithfield, and it was equal to beef brought from the Argentine, which bad the great advantage of shorter distance transport. Now all that remained tortile people was to provide quality at this end. If this -was done, far better prices than for frozen meat were assured.

“The Government is anxious to help the industry, but it is not the function of the Government to. run an industry in New Zealand. That is far better don© by private enterprise,” said Mr Forbes. Where research and scientific investigation was required, however, the Government was very willing to assist dcvelomnent.

The pig industry in New Zealand was referred to by Mr Forbes. The growth of this industry had also been bixiiight about by scientific research. Now pigs which were sent Home were equal to anything that was received on the London market. Wool Production. “I took the opportunity of going to Bradford and meeting the British Wool Federation,” said Mr Forbes. “I asked them the position in regard to. our wool, and 1 they told me that for some reason or other New Zealand wool was better than from any other country.” Mr Forbes said that members of the federation spoke of uniformity iii wool production, and stated that they were apt to lose patience witli very varied types of wool produced in a country. Uniformity had been achieved in fruit, meat and butter. The question of uniformity in wool production was one to be decided by the farmers themselves.