TRANS-TASMAN TRADE

Press, Volume XCIV, Issue 28133, 23 November 1956, Page 6

TRANS-TASMAN TRADE

BENEFITS TO BOTH COUNTRIES

CLOSER ASSOCIATION “INEVITABLE”

With prospects of continued increase in population, and limited scope for expansion of purely primary industries. Australia and New Zealand will both rely on expansion of industrial activities to maintain employment and carry forward their development, says the Bank of New South Wales in its November “Review.” Intense national pride at present precludes any close integration of their activities, but it seems inevitable that trade and commercial associations will draw the two economies closer, to the benefit of both. The particular natural advantages of each are now clearly recognised, and by co-operation these could be more fully exploited.

“Given-an enlightened approach by governments, the present common links of language, outlook, and confidence in the future could be considerably strengthened. ... On the face of it Australia might appear the most likely outlet for New Zealand's growing industrial potential in some specialised lines, provided labour costs remain competitive.

Australian Import Licensing “At present, however. Australian import licensing presents an effective protective barrier against imports from New Zealand and elsewhere which might offer a serious threat to individual Australian industries while the current rate of exchange between the two countries is an additional disadvantage to New Zealand exporters. This same factor operates to make Australian goods cheaper to New Zealanders but it is apparent that the exchange values of the two currencies are influenced by more powerful considerations than the effects of their relatively small mutual trade. New Zealand Export Prospects

“The best prospects for increased exports from New Zealand appear to be in the products of the softwood forests. Newsprint and sulphate pulp have made an appreciable contribution to overseas income. Timber shipments are confined to pinus radiata. which has had only limited acceptance in Australia, but more intensive marketing campaigns and greater attention to the quality requirements of the Australian market should do much to encourage substitution of larger quantities of this timber for the other softwoods imported by Australia. A steady demand already exists for such New Zealand produce as crossbred wool, small seeds, livestock and fish while opportunities for exports of frozen and canned vegetables and fruits do not seem to have been fully exnlored.

“Despite any suggestions, the national policies followed by the respective Governments are still the limiting factors, for each is preoccupied with achieving a balance in its overseas trade and at the same time offering maximum protection to its own local industries. While it must be regretted that controls are still regarded as necessary, the long-term advantages of an extension of trade between Australia and New Zealand appear to have been recognised,” the article says.

MEAT EXPORTERS’ ACCOUNTS

EXEMPTION FROM CLAUSES IN COMPANIES ACT

Freezing works companies engaged in the meat export trade have been granted exemption from clauses relating to the balance-sheet and profit and loss account in the Companies Act, 1955. An Order-in-Council exempts these companies from the requirement to disclose in the profit and loss account the amount of any provision for New Zealand taxes.

It also exempts them from disclosing any provision made for purposes other than depreciation, renewals, or a fall in the value of assets, or any amount withdrawn from any such provision. The meat companies arc also exempt from the requirement to show separately in the balance-sheet the aggregate amount oF provisions, in so far as that would require any provision for tax to be separately stated. Although the companies concerned are not required to make these matters public they must, if requested, furnish to the appropriate authority a statement containing the particulars which they are no longer required to publish. The order comes into force on January 1, 1957.

“INTERNAL STABILITY IN N.Z. WITHIN REACH”

“Strict control will have to be maintained if the progress made in the last year is to be consolidated.” says the Bank of New South Wales in an article on New Zealand's credit policy in the bank's latest review. The article reviews on overseas trade, internal prices, employment and bank credit. “Credit restrictions will necessarily continue well into the New Year, but it now seems that the attempt to restore balance to overseas transactions has been successful without resort to direct controls on imports, and that internal stability is within reach.”