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PROBLEMS OF N.Z. TRADERS

“Folly To Magnify Difficulties” MR WATTS REPLIES TO CRITICS (New Zealand Press Association) AUCKLAND, November 11. It was the greatest folly to magnify trading difficulties, said the Minister of Industries and Commerce. (Mr J. 1. Watts) in an address to the Auckland Chamber of Commerce today Though difficulties should not be many traders and too many organisations had been ready plain in public that trade was bad and prospects were poor, he said. It was the very saying of those things that created doubt and uncertainty in the minds of other traders and the consuming public. Mr Watts salc |- 1* things had to be put right, it could be done between the trading organisations and the Government. About half the country S importe came through the port of Auckland, and about half the country s manufacturers were situated in and r?o aa Auckland, he said. More than ball tbe letters he received came from Auckland. Last March there were many complaints that Auckland business people were not getting their fair share of imports and licences, but today the position was a little different. Over the last 20 to 25 years, trade in New Zealand had expanded and developed in spite of a slump, import controls, the outbreak of war. the outbreak of peace, a change of Government. strikes, and exchange controls, said the Minister. He predicted that problems of one kind and another would continue to be the day-to-day lot of the business community. Today, he said, trade was not flowing at the same level as 12 to 18. months ago, and the trader -was facing unsettled conditions, but the over-all organisation of the business community was sound. Mr W'atts said basic facts m the country’s economy were: there were many more jobs than people to fill them, although vacancies were falling; there was a pent-up demand for capital expansion; in three years. 65.000 children would leave the schools to fill the labour market and become consumers; and there was a steady demand for New Zealand farm products in the markets of the world. If these four factors were taken into account. New Zealand had a very great future for all its people. Mr Watts said. “Experts’ Prophecies Wrong”

After the outbreak of war in Korea, all the prophecies of the experts and Government departments on the expected effect of the British and United States rearmament programmes had been wrong, said the Minister. Prices did rise rapidly. but they also fell rapidly, and supplies did not continue to be short. In the midst of all this, the waterfront strike has obscured the change in .the supply situation. It created an extra demand for bank overdrafts, to the tune of about £30,000,000. New Zealand was facing also problems created by the upsurge in wool prices. The Minister said the measures the Government had taken had prevented inflationary trends getting out of hand. They had prevented a surge in wages, which would have been no good to the business community or the workers. Until Great Britain’s markets closed down on her. and deliveries to New Zealand speeded up very rapidly, there appeared no necessity for any further restrictive action.

“There is a bit of grizzling going on in the trading community, ,{ said Mr Watts. “There are some people who claim to know better than the Government and the Reserve Bank how to deal with the problem. This is a Government of people interested in the business community, but it seems that some supporters of the Government want a change. ‘ “The alternative is offered by my dear old friend. Mr Walter Nash and other leading members of his party,” said Mr Watts. ‘‘You can, if you wish, have complete import control again, land sales control, income tax at a greater level, and the continual threat of socialism over your business and affairs

“I think the issues are as simple as that. It is not a bad time for the business community to study what is Offering in the political field, and to make up your minds which particular brand you would like.” Mr Watts said.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19521112.2.66

Bibliographic details

Press, Volume LXXXVIII, Issue 26886, 12 November 1952, Page 8

Word Count
686

PROBLEMS OF N.Z. TRADERS Press, Volume LXXXVIII, Issue 26886, 12 November 1952, Page 8

PROBLEMS OF N.Z. TRADERS Press, Volume LXXXVIII, Issue 26886, 12 November 1952, Page 8