ECONOMY OF N.Z.

Press, Volume XCIX, Issue 29336, 15 October 1960, Page 14

ECONOMY OF N.Z.

“Dependence On Markets Abroad” (New Zealand Press Association) WELLINGTON, October 14. The Government bad given much thought to the need to provide a better balanced economy, not so dependent on fluctuations in trends on overseas markets, as at present, said the Prime Minister (Mr Nash) today. The best way to do this was to decrease dependence on imports, he said. Mr Nash was oflicially opening a new factory at Porirua. “We have not been adding enough of our own New Zealand skill and resources to the products we make,” said the Prime Minister. This fact was shown by the figures for “value added by manufacture.” This had remained constant as a percentage of the gross national product over 25 years. In 1933 “added value” of factory production was 21 per cent, on the gross national product; in 1958 it was still 21 per cent. One of the results of this lack of processing was the very high dependence on imports. In 1957-58 imported goods, as a percentage of goods available for use, was 46.6 per pent. In 1950-51 it was 42.6 per cent. In its field the wallpaper factory put New Zealand in the van of industrial progress south of the Equator, he Said. The manufacture of wallpaper was a valuable way of using a basic New Zealand raw material. The remarkable progress in three years of the New Zealand pulp, paper and paperboard industry was shown by the increased value of output—almost 400 per cent. From £4,044,000 in 1954-55,' the value of output had increased to £15,378,000 in 1957-58. In addition, newsprint, first produced in 1955, had reached an output last year of 76,100 tons. The Leader of the Opposition (Mr Holyoake) said he Saw the wallpaper industry as an example of vigorous private enterprise, of which more was wanted and more would be seen. It demonstrated that there was a greater appreciation of “partnership” in New Zealand from investment and management to skills and labour.