Mr. Nash Stresses N.Z. Need To Export Consumer Goods

Press, Issue 29236, 21 June 1960, Page 16

Mr. Nash Stresses N.Z. Need To Export Consumer Goods

(New Zealand Press Association)

AUCKLAND, June 20.

While the New Zealand economy was based in the main on the overseas earnings of its wool, dairy and meat industries, it was in a precarious and vulnerable position, the Prime Minister (Mr Nash) said in Auckland tonight. Addressing the annual dinner of the Penrose Industrial Progress’ Association, Mr Nash said the only way to reduce that vulnerability was to export consumer goods rather than raw materials. He instanced the processing of meat, wool and hides as fields of desirable industrial development.

A 20s a hundredweight drop in the price of New Zealand butter overseas. Mr Nash said, meant a loss of £4 million a year to this country. A Id a pound drop in the price of wool meant a loss of £2.200,000. New Zealand could not afford to depend on three commodities to sustain its economy. There was a need to expand industry in the same manner as Australia had done.

Mr Nash said he had hopes that the European common market countries would not shut out New Zealand products. He described the alliance as a political move with self-defence as the main purpose. The six countries together could be stronger than either Russia or America, although their total population was only 169 million

“Phenomenal Recovery”

Referring to his recent trip abroad. Mr Nash said he had been tremendously impressed by the ohenomenal recovery made by Western Germany. “It has greater gold reserves today than the United Kingdom,” he said, “yet they lost the war and we won it.” .

Mr Nash said he believed that the West G*erman leader (Dr. Adenauer) would play ball politically with other countries when he could see it leading to a reunification of Germany. Mr Nash quoted Switzerland, Holland and Denmark as examples of small countries with limited resources which had developed their skills to such an extent that they could hold their own with other countries. New Zealand had to be the same by processing its own raw materials and imported raw materials.