EXCHANGE RATE ALTERATION

Press, Volume LXXXIV, Issue 25678, 15 December 1948, Page 4

EXCHANGE RATE ALTERATION

MR MCALPINE SPEAKS AT HOKITIKA

The alteration in the exchange rate subject of comment by Mr J. K McAlpine, National Party member for Selwyn, in a post-sessional address at Hokitika last evening. Mr McAlpine challenged the claim that the change had reduced the cost of living and described its effect on the income of the primary producer. Assuming that conditions, including overseas prices, were on a par with lest year, the alteration to the exchange rate would mean a reduction of £28.000,000 in the value of New Zealand exports, said Mr McAlpine. A point that was all too often lost sight of was that the altered rate of exchange entailed a loss of 20 per cent, on the primary producer’s gross turnover, which meant a reduction of much than 20 per cent, in his income. The benefit to the community it approximately nil. Nobody can tell me that his cost of living is appreciably lower because of the alteration to our exchange rate. It must bp remembered that the continuation of shortages is, in part, due to the reduction of approximately £28.000,000 in the value of our exports,” said Mr McAlpine.