Free Trade Area “Out Of Question”

Press, Volume CII, Issue 30192, 25 July 1963, Page 14

Free Trade Area “Out Of Question”

(New Zealand. Press Association) AUCKLAND, July 24. Free trade or a free trade area involving New Zealand was out of the question in the immediate future, said the chairman of Fletcher Holdings, Ltd. (Sir James Fletcher), at the annual meeting today.

“As large buyers of Australian products we are entitled to expect the sympathetic attention of the Australians on reasonable proposals to expand our exports to that country,” he said.

“If we can approach this problem on a commodity basis, I feel sure that much progress can be made.” He hoped New Zealand would not become “starryeyed” with the idea that manufactured exports could make a major contribution to the problem of a worsening balance of payments position. Sir James Fletcher said. “I am not suggesting that we do not pursue every opportunity that arises, but I am firmly of the opinion that New Zealand’s stability and solvency must rely on the export of food and other primary products and items such as pulp, paper and timber, on the one hand, and a further rapid increase of local manufacture on the other.”

Sir James Fletcher told shareholders that unless New Zealanders were prepared to make much more locally to conserve overseas exchange, the time would soon come when they would just have to do without.

“With our high living standards and our relatively small, but high income market. the price of most articles manufactured or likely to be manufactured here is going to be higher than the prices which we can get these goods for if we shop in the cheapest markets

“There are many off-setting factors in the price question, but essentially this pill has to be swallowed,” Sir James Fletcher said.

He said farmers and manufacturers must work closer together and be prepared to help one another.

“ T f local conditions demand that the price of essential

farming materials be increased, then the question of subsidising farmers may have to be considered.” he said. “In my opinion our longterm economic outlook is serious and with our growing population, the time is not far off when, if we do not face the problem now, we will have insufficient funds to pay for the basic imports to keep our farmers and manufacturers in business. “In this changing world of ours, we have got to look toward a rational form of self-sufficiency to survive,” said Sir James Fletcher. “The major role of manufacturers is and must be in the substitution of imports and the development of manufacturing must go hand in hand with the development of exports,” said Sir James Fletcher.