MANY CHANGES

Ashburton Guardian, Volume 60, Issue 28, 13 November 1939, Page 3

MANY CHANGES

ECONOMIC SITUATION. POLICY OF SELF-SUFFICIENCY. (Per press Association;. CHRISTCHURCH, November 12. “The last 12 months' have seen many changes take place in the economic situation in practically every country in the world,” said the Minister of Industries and Commerce (the Hon. D. G. Sullivan) to-day, in reviewing the progress of New Zealand’s policy of self-sufficiency. This policy has been accentuated by the political and economic storms that have swept over Europe. “The repercussions of the crisis of last September, and subsequent diplomatic developments that led to the present situation, have had their reactions in our own country. The situation that was developing has added to' the difficulties experienced in the efforts towards expansion, both here and Australia.'

“Following on a period of lower prices for our primary products, and at the same time a period of heavy importations, the sterling position became increasingly acute.* “The exigencies of a war situation have added to the stringency. Even granting that that is the position, it cannot be gainsaid that tho policy of industrial expansion, instituted by tho Government, has had beneficial effects, and lias provided the nucleus for dtv veloping a moro balanced economy,” continued the Minister. “Self-sufficiency is a policy that has advanced rapidly in many countries, any everywhere the creation of overseas credits has become a matter of great difficulty. The Primary Industry. “It must be admitted also that primary industry must be intensified, and our production increased. The ultimate aim must be directed towards an increased population, and the provision of a large home market lor our primary producers. “When the operations of the marketing schemes, now being discussed with the United Kingdom Government, get under way—and the discussions are nearing finality—the position will improve. We must liave our house in order ready to take advantage of that improvement. “New Zealand has always honoured its liabilities overseas, and, if in the keeping of our pledges we have to curtail our purchases, we have the satisfaction of knowing that we have maintained our national honour.”

The provision of £14,000,000 to meet interest and debt repayment commitments had to tako precedence, but essential supplies of raw materials were also receiving consideration in negotiations with the United Kingdom Government, said the (Minister. A practicable and satisfactory solution would be found for all problems that beset the countries desiring to develop their natural resources, New Zealand amongst them. New Zealand had made great advances in the last 12 months —advances tjat had materially assisted the creation of a balanced economy.

The greater development of New Zealand’s own raw material's would assist in this direction, and the Government was losing no opportunity of bringing all the' aids of science, and the intensive genius of the people, to bear on this aspect of the case. The development of New Zealand would go on and final success would be more appreciated because it came through determined efforts.