MR NORDMEYER ON TRADE

Press, Volume XCVII, Issue 28748, 20 November 1958, Page 16

MR NORDMEYER ON TRADE

Looks As If N.Z. Has Turned Corner”

iwatas is if New Zealand had. economically, -ie Mnacr, said the Minister of Finance (Mr umr-s- .? an address yesterday in the Jellicoe *au : i a-feiy-attended lunch meeting of the Can- ■ T-nu— t-trer. of the New Zealand Society of t~ '■ icnt-ejer considered that New Zealand's nrf year were better than those for this w i» •» tfea ieekg-term prospects, he said that if ’samnm in the United Kingdom, con"~rm -nutt prove here. sur—i'W4T-< t’-erseas next year, he predicted, • w mo a fraction of the £54,000,000 borrowed taa *■«-•

”til~ ■ 3 V: be «: • . -• pros- - i Trx "*mt toe ease • Mr fIE - £ L<_- ' i - • t • ■ : rex - . am j-snees u de- - -ear might ■* - .*• That a tt» *iur we zsKud cenMBHHi v. - would be - ' nr »w t -- for r ne a ! see to - - -4 '•» pr.ces r~ Taosraiiam. . £4f Xft,OOQ.“ •se-ae-e toi“ tefteiS. it had B » ex’.en- ■•■.- T>j *u a year -U2 -XCBBBXU i-'C L= F-iCh a w. to - ■< did ’irnre toxt «m» people and ——■* "X'-Etj ta--e :*r* F-ggest-l*w.ar~r a r' —rw ±e »;d “1 •■y*.' a —!i ±»e rr?—rxe who i.-'wr -• wmi me facts etxiid ■'*'*’ rac vas ttrce. That} r “~S rrji -ear m _x«*cap■aairr. he -tat naa *e— x~? 3i» -a_- rax been ■ '-4 Sew Zea*?qr" wr jer nai 2 a 1 -zr. to Be bbbobm • bbeb :cc.e r -'•?■? rre iraa?* -er eng ~ we tat roc ?c pay for ’tutt xrxsi »ma r«?e _x iast '•ff su: r. 'tei. trr v r_-c* war _rtu m ear. y rix ins rta w trfttrer 100 r.- r a* rnx.ja o£ tnu ■er T’ggp jue n. wc ajbyect * rui rr* v ■ ■ payTaer. 3» tr w» zrane. I ew c-v n jac’ mr setix and tor -__r .'.rngunnena ire r -x imx. to- =-;• puuußtie 00-rxe □«: aoa. rjrer ir f-rther ■ '•'Lrr: n serac tr trr -hports. - t a- tt"' w a SI 3< gap | - -ssese wTUiiz at» "Bji if MBct Bto is.- j £45 300.000 tar-» '-t.. mxae forl w-=g £ kM.wr The m-—r' b h» wee -ran is addi- •» saachg jj-ri’Miae. for pay-i <_ -~b: -ti p f - - it rm b to rnase Jxr what’ '■—» tml—t ra.f i»£eß:e<. on tssa •w 'tmee rac bees deferred. ; terr tsas tr so mr: Booaer or

■B ttw fir» _sa: tf any-: trao r s 3eoe_h.e or uise - xs borrow at Buev berrw=-ed ...tai •ar wil nave zs sar It is rsr ■ -waa rw wise.” said "6» w_l aave to w a * - rex: year I: should • ' a :* sof -hr -- rac ir :c~: w ms year; t— srtr h our acm 3w as w« ran I will w rsr. sb ar as th 3 year is - trtes he posa&E new is - STsr nan t m earner m the mbbk. beef, sold on ■•* *=s*—tesht tuettsc had this "bf - bK bmee than -*a 'mamuaoet n d the Mim-li_-nnga fcr nem last year£3B JBL JHT. ace were likely • “ ■* £W BW W y ear. -i« n Tries 7 earnings had - CTer.-. ie £*U mj wt rjicar am£. tor most' Tul «r a -elauvely low. trm. tain »ca toe guarr *—e ttt-a ”•» ■ rf arcport controls I ■a -e* :r..i4 tfiMre.: in the *~w rr im>!i ts are wpuid oe r «k-if ra_— rtf toe year. ~ aw rr- re part of the ■ear- re fmi rr r-eoparo for im•—*t Tan arT.-a-T ngrer than snr -*■£- ‘T—was that ■r»nr- esu-gji rfmiee to get - jgwga r? anotoer cut wra «rc-.*T. rur ia tattar part

of the year the flow of imports had been declining. It wag likely that, although the amount gpent on imports this year would be greater than the Government had allowed for in the licensing schedule, the imports would, nevertheless, represent a substantial decline on those for last year. ‘ The prospects for meat are not merely good—they are very good.” said the Minister. “I would think, therefore, we can contemplate that next year our earnings for meat, allowing for the amount of capital stock lost, will be just as high as this year.” Butter and Cheese At the latest price of 264 s per cwt butter was selling in London at 48s per cwt below the guaranteed price, and he did not think there was any prospect of its rising to anything like the guaranteed price. <?

Cheese was certainly doing better, but, unfortunately, New Zealand did not have the quantities of cheese to sell at the high prices. Indeed, in a few weeks stocks of last season’s cheese would be almost exhausted. And he thought that the situation which had created high prices for cheese was likely to disappear by next year. Wool was a commodity about which there was room for the greatest speculation. There were many persons in this country who thought wool prices were much better than they were. They were much better than some thought but not as good as most would’ like. Possible Wool Rise Although the price was reasonably good, it earned for them as a community £28,000,000 less in overseas funds than it earned last year. “And indeed, if the present price of approximately 34d per lb average is maintained throughout the whole of the season, our earnings for wool next year will actually be less than this year, because in one part of this year prices were relatively high. It might be contemplated that, if the American trade recession is over and expansion continues, wool prices will be at least maintained and possibly increased. It is worth while emphasising that every penny a pound in the price of wool represents overseas £2,000,000.” Overseas Effects It was, of course, possible that something would happen overseas to affect, for better or for worse. New Zealand’s position. The facts did not warrant optimism; neither did they warrant pessimism. They justified a spirit of realism. What was wanted in New Zealand today was a willingness to face facts as they were, not what one would like them to be. “I think we can say, in a spirit of realism, that the prospects for next year are better than for this year.” said Mr Nordmeyer. “As to the long-term prospects, nobody but a fool would attempt to prophesy; but one thing we can say, and say with certainty, is that although we can do a very great deal to prevent the full shocks of overseas conditions affecting this ( country, sooner or later this country’s economy must be affected by conditions in other parts of the world, and particularly in the British Common- ; wealth and more particularly in I the heart of the Commonwealth, i the United Kingdom. I “If conditions improve there, and we all sincerely hope they will, conditions generally will improve here. We are all in this together. Anything that happens in other parts of the world can, directly or indirectly, affect our welfare here.” Had any consideration been given to borrowing from the International Monetary Fund? Mr Nordmeyer was asked by a member. “Without entering into arguments for and against joining the International Monetary Fund, I can say consideration has been given to the matter.” replied the Minister, amid laughter.