£27m Deficit In Overseas Balance

Press, Volume C, Issue 29444, 21 February 1961, Page 14

£27m Deficit In Overseas Balance

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X ' WELLINGTON, February 20. The deficit of £27m in New Zealand’s overseas balance of payments highlighted one of the most deep-seated problems facing the Government, said the Prime Minister (Mr Holyoake) in his “state of the ration” address this evening.

To correct the situation. Government policies were directed to increasing production and building up overseas earnings, he said, adding: “We shall give incentives to entourage increases in production from our established export industries. “We shall encourage the development of the tourist industry. “We shall encourage the expansion of export industries. The Minister of Overseas Trade (Mr Marshall) has commenced a drive to intensify trade with overseas markets. “We shall encourage the development of New Zealand industries which can economically manufacture goods which were imported previously. J “We are initiating a unified drive to open up and devleop new markets overseas.” Mr Holyoake said there had been a heavy rundown of overseas funds in 1957. In

1958, the balance of overseas payments showed a surplus of £ 13m, after the Government had borrowed £37m abroad. In 1959 there was a £22m surplus achieved without overseas borrowing: but last year there was a £27m deficit Earnings ( Unless there was an improvement in export prices, overseas income for the present year was likely to be lower than last Wool prices had dropped from an average of 44d per lb for the whole of last season to just over 40d for sales to the end of January. Butter and cheese prices gave ground tor the greatest concern. he continued. There was little immediate chance of an improvement Receipts from meat overseas had been satisfactory in recent years, but the present priee trends were not satisfactory he said.