Govt. And Business Co-operation Urged

Press, Volume CI, Issue 29763, 5 March 1962, Page 14

Govt. And Business Co-operation Urged

(N.Z. Press Association) QUEENSTOWN, March 4. Much could be learned from the concept of joint consultation between the Government and business, the Minister of Customs and associate Minister of Industries and Commerce (Mr Shelton) said on Saturday night. Opening the conference of the New Zealand Retailers* Federation, Mr Shelton said he was sure that the proposed export promotion council would be a good example of this joint consultation, and should be operating soon. '

“The names have already been selected and the men approached. The Minister should be announcing its composition some time next week,” said Mr Shelton. Labour and capital were at present New Zealand’s “most scarce resources.” Industries should maintain the highest standards possible for quality production and industries should manufacture at prices competitive with imported products. “Industries fulfilling these criteria are worth encouraging but each new venture must make a contribution to our economic strength,” said the Minister. “Government has the responsibility to ensure that New Zealand has the best economic and social environment for encouraging manufacturing development and the development also of other vital sectors of our economy “The distributive section is one which may need some re-orientation in view of changing patterns of trade. “Loans must be eventually repaid, thus our borrowing should be used to the greatest extent possible for capital investments in New Zealand —to produce wealth rather than to support immediate

consumer demands,” he said. Overseas assets had risen slightly but were certainly far from adequate. “The trading banks have proceeded to reduce the level of their advances and a measure of reduction is gradually being

achieved. This is encouraging, but if internal demand is to be restrained further reductions will be necessary,” said Mr Shelton.

The Government was putting forward New Zealand's views in negotiations and discussions with other governments and regional organisations in “as strong a manner as possible” and he only regretted that it was not possible to publish the stream of cables passing between New Zealand and overseas countries at present, he said.

“We should be improving our distributive and transport systems; we should encourage wider geographical distribution of industry for more balanced national development; our education system constantly needs reexamining to meet the complex demands of an expand-

ing society,” said Mr Shelton.

A modest increase in export earnings was the most that could be expected for 1962, said Mr Shelton, but strong efforts were being made to expand earnings wherever possible. “As the growth of agricultural protectionism in many countries over a number of years has become abundantly clear to us, so we must accept that we simply cannot expect our growth to be based only on increased farm production. "It is imperative that our current overseas payments for 1962 be below the 1961 levels. Borrowing will be necessary but it must be emphasised that the world is capital-hungry and that New Zealand will have difficulties in obtaining sufficient accommodation overseas,” he said.