N.Z. OVERSEAS TRADE

Press, Volume LXXXVIII, Issue 26672, 5 March 1952, Page 8

N.Z. OVERSEAS TRADE

£6,727,000 Deficit In January NORMAL TREND REVERSED (New Zealand Press Association) WELLINGTON, March 4. New Zealand had a deficit of £6,727,000 in her overseas payments in January. This abnormal figure for one of the peak exporting months contrasts with a favourable balance of £15,202.000 in overseas payments during January of last year. “It is far too soon for the effects of our financial adjustments to be reflected in the balance of payments figures,” said the Prime Minister (Mr Holland) to-night. “The figures disclosed give me no surprise, but I must admit they emphasise the seriousness of the position to which I have been drawing attention since my return from London. "I am confident that the steps which have already been taken will correct this very unsatisfactory situation,” said Mr Holland. Two major factors contributing to the deficit—the first January deficit for some years—were the fall in wool prices, compared with those of January, 1951, and the continuation of the heavy volume of imports which was reached during the last quarter of 1951.

Wool exports in January of this year yielded £10.004.000, compared with £ 18,771,000 in January, 1951. Payments for non-Government imports, on the other hand, rose nearly 100 per cent., from £12.846,000 in January, 1951, to £24.005.000 in January, 1952. Exports in January, 1952, were valued at £20.368000, or little more than two-thirds of the January, 1951, figure, which was £30.042,000. Returns from butter, cheese, meat, and all other exports except wool remained relatively steady, any slight fluctuations being mainly caused by the shipping position. New Zealand's total overseas payments in January, 1952, were £29.367,000. a very steep rise from the figure of £16.965.000 in January, 1951. The net deficit for January, 1952, compares with deficits of £3.584.000 in December, £10.569.000 in November, and £8.706.000 in October of 1951. The following table gives details, in ftiousands of pounds, of the payments and receipts lor January, 1952 and - January. 1951: Receipts

£ £ Butter 5.075 5.963 Cheese 970 1,599 Meat 2.190 1,470 Wool .. 10.004 18.771 Other exports .. 2,129 2.239 Total export receipts 20.368 30.042 Other receipts 2.272 2,125 Total receipts 22,640 32,167 „ Payments Government payments— Debt interest .. — 361 Redemption Government imports .. 3.291 1.091 Other payments 232 264 h on-Government payments— Imports 24.005 12.846 Other payments 1.840 2.403 Total payments 29,367 16,965