Problem Facing N.Z.'s Future Food Selling

Press, Volume XCIX, Issue 29191, 29 April 1960, Page 16

Problem Facing N.Z.'s Future Food Selling

“The Press" Special Service NAPIER, April 28. New Zealand must spare no efforts to diversify its markets and must have bold selling backed by all the resources of the country, said Mr P. J. Harris, of Whangarei, in his presidential address to the annual .conference of the Associated Chambers of Commerce this evening.

One of the main problems seen by Mr Harris was the inability of customers in tow-standard countries to pay the economic price needed by the producers of the food in countries like New Zealand with a high living standard.

Mr Harris said there should always be a good potential market for New Zealand’s butter and meat. But there was a large and as yet unresolved problem in selling primary produce to much of the world’s population. “How are we to bridge the gap between the hungry customer who almost of necessity has a low

standard of living, and the seller of food who produces under a high standard of living?” he asked. He thought there would have to be some assistance given by the governments of both producer and consumer if the gap was to be bridged.

At present any artificial depressing of selling prices incurred a charge of dumping. For food. Mr Harris considered there should be a distinction drawn between depressing selling prices merely to beat competitors and taking similar action to assist impoverished countries to receive adequate food. He could not believe that the country’s full selling potential would be reached until much greater opportunity was given for private enterprise to use its initiative and resources in the development of markets. Private Enterprise Alarming inroads had been made on the domain of private enterprise. Mr Harris said, and the association must again proclaim its faith in the importance of a free and unfettered economy with a minimum of interference by the State in the affairs of its citizens.

The country was not really assisted through exchange crises by violent manipulations of money and credit, nor with the imposition of too stringent controls, he continued. It was badly in need of forward planning to meet exchange difficulties. Discussing manufacturing, Mr Harris said that on the whole it was fair to say that New Zealand manufacturers had risen very well to the challenge of providing both quality and quantity. “However, the lessons of the last three years should have reminded us that the consumer is king and that he expects and is entitled to receive the utmost quality and diversity in manufactured goods.” He believed New Zealand businessmen were capable of meeting the challenge of overseas competition without assistance, except in special cases. But even more firmly he believed that wherever possible the customer was entitled to the opportunity of comparing loeal quality and variety with that of overseas. “It is natural for a small, isolated country such as ours to become parochial, complacent and self-satisfied,” he said. “Free access to the products of other

lands can exercise a most salutary effect on these weaknesses.” The country’s capital needs were going to be enormous, he continued. It would be quite impossible for the need to be met from the country’s own savings, although more incentive must be given to saving by reducing the burden of taxation. "Fortunately, overseas capital seems increasingly willing to consider investing in this country,” said Mr Harris. “The trend of overseas investment seems to be moving steadily towards the Pacific area. Capital will be available to us in abundance so long as we can assure overseas investors of internal political stability with a minimum of socialistic experiments, and can offer them reasonable freedom to move their capital and its profits in and out of the country.” Mr Harris said he liked the idea of overseas capital coming in partnership with local capital in the creation of new enterprises. Australia provided a fine example of that. Mr Harris then repeated the plea of many of his predecessors in office for New Zealand to join the International Monetary Fund and the World Bank. Tourist Industry After discussing the importance of the tourist industry, he said New Zealand must tackle some basic deficiencies. Accommodation and special facilities for travellers and “our pitifully inadequate” liquor laws were but some of them. “It is certain that if New Zealand is to reap to the full the possibilities that lie ahead of us. the finest qualities of leadership will be required from all those in high office,” he said in conclusion. “The problems that we can see will require from our political leaders wisdom and statesmanship. We shall need a much higher order of Government than we have had in the post-war years.” Business leaders must also cultivate a wider appreciation of the evolution of business and the new and complicated problems of its integration with and significance to modern society, he said They were problems that transcended those of merely earning profits, “Important as they are.”