N.Z. EXCHANGE RATE

Press, Volume XCI, Issue 27628, 7 April 1955, Page 12

N.Z. EXCHANGE RATE

Alteration Not Being Considered MINISTERIAL REPLIES TO QUESTIONS (New Zealand Press Association) WELLINGTON, April 6. The Government was not considering altering the exchange rate, said the 1 Minister of Finance (Mr J. T. Watts) in the House of Representatives today. He was taking part in a discussion on the written reply of the Minister of Industries and Commerce (Mr D. J. Eyre) to a question asked previously by Mr J. Mathison (Opposition, Avon). Mr Mathison then asked whether the Government proposed to follow the Australian Government’s lead of reimposing frnport control to safeguard the external economy of the country. Mr Eyre replied that adequate steps were being taken by the Government to safeguard overseas reserves. Mr P. N. Holloway (Opposition, Heretaunga) said he considered that the Government’s present policies would lead the country to bankruptcy if the drain on overseas funds were to continue. Mr Watts said that in 1939 the then Government could not pay overseas exchange from day to day, and had to go to the Reserve Bank to see whether there was enough exchange for day-to-dav requirements. Today about £1,000,000 a month in overseas exchange was being spent above earnings, but such fluctuations would continue until controls became operative m about a month. Cement Supplies There would continue to be recurring shortages of cement in New Zealand, said Mr Watts during discussion of a question by Mr E. J. Keating (Opposition, Hastings) and a written reply by Mr Eyre. Mr Watts said the Government’s firm policy was to keep a close watch on cement production. In 1949 the total cement consumption of New Zealand was 250,000 tons, and imir-‘s were 31,000 tons, continued Mr -’ntts. In 1954 total consunrotion /as 503,000 tons, local production being 317,000 tons and imported supplies 186,000 tons. Amending of Milk Act Certain minor machinery amendments to the Milk Act, 1944, would probably be introduced this session, but if any amendments were proposed that affected milk authorities they would be consulted, as they had been in the past, said the Minister of Agriculture (Mr K. J. Holyoake) to Mr R. M. Macfarlane (Opposition, Christchurch Central). Learners’ Swimming Pools The provision of learners’ swimming pools in schools throughout the country was the best method of lessening the toll of lives in drowing accidents, said Mr J. B. F. Cotterill (Opposition, Wanganui). Mr Cotterill was urging the Minister of Education (Mr Rl M. Algie) to consider inerr ing "he present Government subsid v on swimming pools erected in school grounds.

In a written reply to a question by Mr F. Hackett (Opposition, Grey Lynn) the Minister said that the Education Department had recommended an increase in the subsidy from £3OO to £4OO. The question woud come before the Cabinet soon.