Social Credit’s Plans To Solve Exchange Problems

Press, Volume CI, Issue 29880, 21 July 1962, Page 15

Social Credit’s Plans To Solve Exchange Problems

ITiZ. Press Association) DUNEDIN, July 20. The departure from traditional trading conditions by the imposition of a quota for New Zealand butter on the British market was a conditioning process and the first step along the Common Market road, Mr V. F. Cracknell, president of the Social Credit Political League, told a packed meeting in Dunedin last night.

If Britain joined the market, it would be disastrous for the economy of New Zealand, particularly during the transitional period when the Dominion was developing new markets, said Mr Cracknell.

It would ultimately mean the disintegration of the Commonwealth. A more desirable alternative to Britain joining the market would be to keep the Commonwealth together by an extension and expansion of the Ottawa Agreement and the formation of a virtual Commonwealth common market.

“In New Zealand, with a continually rising cost structure, the position is even more serious since we must look to the poorer Eastern countries for alternative markets.” Mr Cracknell said. “If necessary. New Zealand must even build its slaughter houses facing the east to cater for the Moslem trade.”

Mr Cracknell presented a seven-point plan to cope with the external balance-of-pay. meats problem.

Tills was:— <l> To divorce import control from politics.

f 2> Expand our internal economy to increase primary production and associated secondary industry.

<3l Encourage the develop, ment of secondary industry, wh.ch wiU utilise New Zealand s na.ural resources. <4> Encourage foreign investment, provided it is under fair and reasonable conditions, and that foreign interests do not take more out of the country than they put in.

(5) Pursue a vigorous and efficient programme of expansion and diversification of our overseas markets. (6) Conform to the requirements of our overseas customers in the preparation, presentation and packaging of our produce. <7) Keep cur heads during balance-of-payments crises or

difficult transitional periods, and live within cur overseas income, not sell the country out piecemeal to foreign investors. or try to borrow our

. way out of difficulties with . costly loans. Fluctuations in externa] trade conditions and the balance of overseas funds, while inseparable from the internal economy, were no excuse for an obsolete, inefficient and 1 dishonest internal economy, Mr Cracknell said. "The worst possible aspect of the whole situation is that it is destroying initiative, enterprise and the will to work in the people of this country,” he said. “The people are losing interest and confidence in our economy and way of life. “The solution is to reduce ’axes and costs and squeeze debt out of the economy.

"The debt tax cost spiral must be slowed down and ultimately stopped, and the confidence of the people restored.”