‘Vulnerable Economy Shown By N.Z. Trading In 19609

Press, Volume XCIX, Issue 29398, 28 December 1960, Page 11

‘Vulnerable Economy Shown By N.Z. Trading In 1960 9

The aim of any community should be the pursuit of a regular improvement in its standard of living, and in making this the major objective for 1961 it will be necessary to intensify our drive for overseas markets and to increase production from both factories and farms, to keep a tight rein on inflation, to pursue a vigorous immigration policy and use our labour resources to the best advantage,” said the president of the New Zealand Manufacturers' Federation (Mr P. Proctor) in a New Year message.

“The year of 1960 has been one of the most notable in New Zealand’s development. In this period there has /been a tremendous advance in manufacturing, a most praiseworthy drive for new overseas markets for our primary produce, and, as shown at the industrial development conference, a realisation that all sections of the community should co-operate in solving problems that could halt national development. Fluctuating Prices “The year’s trading has demonstrated, however, the vulnerability of the economy in the light of fluctuating prices for our basic primary products and excessive demand for imports.” Mr Proctor said. “The most recent figures issued by the Reserve Bank showed that during the • year ended November, 1960, there was

an’ over-all deficit in our overseas transactions of £22 8 million, compared with a surplus of £26.8 million in the 1959 November year.

“The figures also revealed that 'imports rose by about £45 million. It would seem, therefore, that New Zealand cannot continue to spend overseas at such a rate and that our earnings abroad must be increased and our exchange-saving industries encouraged in every possible way.

“New Zealand is one of the largest trading nations in the world a head of population and New Zealanders buy at the rate of about £64 a head from Britain, almost twice the rate of any other major Commonwealth country. It is obvious, therefore, that we shall have to continue to control our imports for the sake of our overseas balance of payments and not, as some persons seem to think, solely for the protection of our manufacturing industries. "We must have a stable trading policy, and it has been gratifying to observe the statements by prominent members of both political parties stressing such a need. It is most desirable, too, that there should be the greatest possible co-operation and understanding between the various sections of the community Ip ensuring that 1961 is a year of continued prosperity and sound development.”