£36.6m Deficit In Overseas Trading

Press, Volume XCVII, Issue 28542, 22 March 1958, Page 14

£36.6m Deficit In Overseas Trading

(New Zealand Press Association)

WELLINGTON, March 21. A deficit of £36.6 million was recorded in New Zealand’s overseas exchange transactions for the year ended February 28 last, compared with a surplus of £1.3 million during the year which ended in February, 1957. The main reason for the deterioration is an increase of £34 million in payments for private imports. An increase of £2.9 million in receipts for exports with little change in the level of other receipts brought total receipts to £321.1 million. Butter and cheese receipts were £12.2 million less than in 1956-57, which in turn were £3.5 million less than in 1955-56. Offsetting these decreases were increases in receipts for meat, wool and other exports. Wool receipts rose by 6.1 per cent, to £104.2 million. The lower prices obtained for wool during the present season are beginning to have some effect on the yearly wool receipts as shown by the following table of wool receipts. Year ended: — £m January, 1957 .. 97.7 February. 1957 .. 98.2 March, 1957 .. 97.9 ' June, 1957 .. 106.6 September, 1957 ... 110.7 December, 1957 .. 108.6 January, 1958 .. 107.1 February, 1958 .. 104 J Meat Receipts Up Meat receipts increased by £5.8 million to £71.1 million. The lower prices at present obtained for New Zealand lamb in London —approximately Is lOd per lb for lamb weighing between 29 and 361 b compared with approximately 2s 2d per lb a year ago—are not yet reflected in receipts for meat exports. In other exports the main increases were for milk by-products and wood pulp and paper. Total payments for the year ended February, 1958, rose by £42.3 million to £358.7 million. All items were greater but the most significant factor was an increase of 14.7 per cent, in payments for private imports. For the month of February, a surplus of £5.2 million was recorded compared with a deficit of £2.9 million in January, 1958, and a surplus of £8.9 million in February, 1957. Total receipts—£3o.2 million—were lower than in February, 1957, but higher than in January, 1958. Compared with January there were increases in all headings except “other” export receipts which fell by £.4 million. For cheese, an increase both in price and volume of sales

accounted for the increase of £.9 million, but the increase in butter receipts reflects an increase in the volume of sales at lower prices. Total payments last month, £35 million, were higher than in February, 1957, but lower than in January, 1958. Private import payments. £17.8 million, were £.5 million higher than in February, 1957, and £l.B million less than in January. 1958.

Comparative tables of receipts and expenditure of foreign exchange for February, 1957, and February, 1958, and the yearly periods ending in those months are:—

Balance: plus 5.206. plus 8.889, minus 37,644, plus 1.338. The net overseas assets of the banking system at February 26, 1958, were £47.1 million.*

Receipts Year ended Feb. 1957 £000 Feb. 1958 £000 Feb. 1957 £000 Year ended Feb. 1958 £000 Exports— Butter 2,530 2,806 39,098 45,094 Cheese 1,768 1.452 14,504 20,683 Meat .. 7,184 6,961 71,133 65.329 Wool .. 11,231 14,138 104,179 98.206 Other 3,175 4.270 48,326 44.990 Total Exports 25.888 29,627 277,239 274.303 Other Receipts 4,358 3,808 43,825 43.482 Total Receipts 30,246 33,435 321,064 317.785 Payments Debt Interest Govt. - - 3.726 2.807 Imports 2,882 3,550 30,162 29,489 Other group expd. Private 691 755 14,124 10.298 Imports 17,822 17,305 265,868 231.871 Other Paymts. 3,647 2<935 44.827 41,981 Total Paymts. 25,041 24,545 358,708 316.447