Commerce Department’s Job “Service, Not Selling”

Press, Volume XCVII, Issue 28629, 4 July 1958, Page 10

Commerce Department’s Job “Service, Not Selling”

(New Zealand Press Association)

WELLINGTON, July 3. The Department of Industries and Commerce was there to assist exporters, not to do all the selling for them, said the Minister in charge of the department (Mr Holloway) in the Budget debate in the House of Representatives. There was an increase in the vote on the estimates for the department to enable it to increase trade promotion plans. The contact of other Governments in order to ease the way for the admittance of New Zealand exports and the undertaking of market research and trade surveys were important ingredients of present activities, said Mr Holloway. The department’s policy was to service selling, and not to sell. It was frequently asked why the Government did not go out and sell overseas, but in his opinion if private companies bestirred themselves they would do some selling also if they wanted to secure profits, he said.

He believed that an extra expenditure of £lOO.OOO on trade promotion would be well worth while. The future of trade posts would take a considerable time to reorganise. The increasing United States market for New Zealand exports would require trade posts in San Francisco and New Orleans. Once those posts were serviced trade would improve. he said. At the same time, the establishment of a further Western Germany post in Bonn for European trade would be well worth while. It would be necessary to change the location of the existing trade posts in India and to.

establish posts later in Manila and Hong Kong, Mr Holloway said.

For a long time there had been some bitterness against the United States because of her surplus disposals and because of her very strict quotas against the entry of butterfat products. He felt, however, that the United States should be thanked for its decision to eliminate the duty on 40/46 coarse wools for a period of two years. The amount of exports from New Zealand to sterling areas had been growing steadily smaller while to the dollar and O.EK.C. countries trade had been increasing, said Mr Holloway. The balance .of trade with the sterling area was growing against New Zealand.. The lesson to be learned was obvious and New Zealand had to adjust her trading system and outlook to modern conditions. Imperial Preference

Imperial preference tariffs made it very difficult for New Zealand to enter into beneficial trade with other countries, but a revision of the Ottawa Agreement was essential if New Zealand was to enter into trade with other nations. He hoped that revision negotiations would be completed in the near future, he said.

New Zealand had already decided to enter into trade talks with Australia, and discussions would begin in Wellington on an officials’ level next week. The difficulty of marketing in Australia was caused by Australia’s trade with other countries, and one of New Zealand’s greatest difficulties was to find the type of goods manufactured here that Australia wanted.