N.Z.’s Dependence On Overseas Trade

Press, Volume CII, Issue 30144, 30 May 1963, Page 12

N.Z.’s Dependence On Overseas Trade

(New Zealand Press

WELLINGTON, May 29.

New Zealand more than the United Kingdom was dependent on overseas trade for her well-being and there was no country which had sought more ardently to specialise in producing exports than New Zealand had, said the Prime Minister (Mr Holyoake) tonight. •

Mr Holyoake was commenting on remarks made in Christchurch by the newly-arrived British Senior Trade Commissioner (Mr J. L. Reading).

“Although 1 think it can be fairly claimed that New Zealand is the most efficient producer of meat and dairy produce in the world, we continue to face mounting difficulties in the markets of virtually all the industrialised countries because none will follow the excellent advice given by Mr Reading,” he said.

“Historically New Zealand has specialised in producing meat, butter, cheese and wool but because of the highlyprotectionist policies of the industrial countries which can well afford to buy the produce of New Zealand this specialisation has not been sufficient to secure for us the markets that we need for the full development of our country.

“Consequently, New Zealand must diversify its economy so that the range of our exports can be extended. In

any case we must make full use of the resources of this country both human and material. Only in this way can we hope to maintain the living standards of our people and promote the full development of our economy.” Although traditionally Britain was one of the most advanced industrial countries of the world she had nevertheless decided to give massive protection to her agriculture of £364 million which was more than the export income of New Zealand and roughly equivalent to the net income of British farming. “Our manufacturing indusiries are making an essentia! contribution to our economic growth,’’ Mr Holyoake said. “However, because the industries depend so heavily on imports of capital equipment and raw and semi-finished materials,- the New Zealand market continues to offer plenty of scope for the sale df the products of Britain and the other industrialised countries.” Britain, moveover, continued to enjoy valuable tariff preferences over a very wide range of imported products, he said. Indeed, many

of these preferences were maintained at a level well above the minimum New Zealand was obliged to accord under the trade agreement.

“We still buy more than 40 per cent, of the goods we need from Britain and this proportion does not take account of the ‘invisibles’ in our trade balance such as the large payments we make for shipping, insurance and banking and other services provided mainly by British enterprises. “We must develop a balanced economy and do all we can to promote efficient production m both agriculture and industry so that New Zealand can grow and face with confidence the challenge of competition and change in world markets,” Mr Holyoake said.