Trade Development Held Vital To Progress Of N.Z.

Press, Volume XCIII, Issue 27988, 7 June 1956, Page 14

Trade Development Held Vital To Progress Of N.Z.

New Zealand's future depended on its ability to develop trade and its own resources, and to maintain industrial and commercial activity so that future generations would be able to enjoy the same or an even better standard of living, said the Minister of Industries, and Commerce (Mr E. H. Halstead) in Christchurch last evening. Mr Halstead was addressing the annual meeting of the CanterburyWestland division of the National Party.

“if there was a change to a Labour government, there would be a return to the strait-jacket or controlled economy. We have seen some good industries made sick in that way. 'Shis country can develop best on free enterprise lines,” the Minister said. The fiscal and monetary measures the Government had adopted had resulted already in improving the position greatly, said Mr Halstead. “We are succeeding in squeezing *the inflation out of our economy, he said. The measures taken had arrested the trend which had disturbed everybody in the country in recent years, and the economy was more securely based than two years ago. “We can now think of expansion, and the future of this countrv depends on the steady expansion of industry,” he said. By 1975 there would be an extra 1.000,000 population, and employment would have to be found for an added labour force of 300,000. It was essential that by that year secondary industries should provide for another 100.000 workers. Mr Halstead said that indicated the importance of the development of New Zealand's manufacturing industries on lines which would enable them to stand on their own feet and face world competition. It would be necessary for many years to have quantitive- restrictions or protective tariffs, but the industries would be raised to a stage in which they could “stand up to the cold winds of competition.”

Primary Trade Mr Halstead said he wanted to emphasise the importance of developing primary overseas trade still further. Overseas exchange was essential so. that the Dominion could buy the capital goods necessary for its great’ development. “Our rate of expansion at the moment is greater by percentage than that of India.” he said. “Therefore we must think in aggressive terms, and go out into the world markets-”

Discussing trade policy, Mr Halstead said that the basic nature of the economy was that New Zealand depended on primary production to get in return raw materials and manufactured goods. But the time must come when it would think of selling its

manufactured products overseas. “I hope-our manufacturers will educate themselves to a new psychology—that' New Zealand goods are good,” he said.

Britain was still the Dominion’s most important export market, Mr Halstead said. In 1954, 65.7 per cent, of New Zealand exports went to the United Kingdom. But that was steadily decreasing, so markets would have to be sought in other countries. There was a need for a greater diversification of markets, and that was why new trade posts had been .established. Britain was likewise New Zealand’s main supplier, providing 54.8 per cent, of imports, but the figure was decreasing year by year, said Mr HalsteadNew Zealand, too. was moving more and more to multilateral trade, and that was what the General Agreement on Tariffs and Trade was sponsoring. G.A.T.T. countries were concerned with 95 per cent, of the Dominion’s trade with other countries.

“This country is geared to the principle of Imperial preference, and we are hanging on to that as long as we ca P»’’ h e said. “I am sure that we will be able to preserve the vital principles of the Ottawa Agreements. We give the United Kingdom 20 per cent, preference on our market, so we have as much bargaining power as Britain. We may be forced to renegotiate, but I am quite certain that the bilateral agreement with Britain will not go.” New Zealand -had tended too Ion? to sit back and say that Britain wa? its best customer, but if it though! m terms of an aggressive trade police it would be the gainer, Mr Halstead said.

Pattern of Imports Discussing “the pattern .of our imports,” Mr Halstead said New Zealand could not save much by going back to import controls, and it would aggravate over-employment. It would some exchange—only about £10,000,000 —and there would be shortages galore and rationing of raw materials.”

Mr Halstead said the tariff review undertaken by the Board of Trade was important. The essential aim of the review was to decide what is a fair tariff, either for an industry or an import.

‘ W e have some industries that need reorganising to meet modern conditions,” the Minister said. “The woollen industry is one that needs a measure of control. In some respects it needs rationalising, and in some respects it is obsolete. I am pleased to say that the industry is vigorouslv overhauling and taking steps which I hope will restore it to its position before the vicissitudes of the Labour Government.*’