£l9m A Year Cost To N.Z. For Travel

Press, Volume CII, Issue 30211, 16 August 1963, Page 17

£l9m A Year Cost To N.Z. For Travel

(New Zealand Press Association)

DUNEDIN. August 15.

New Zealanders were avid travellers and this was costing the country £l9 million a year in overseas exchange reserves, toe Minister of Overseas Trade (Mr Marshall) told the Otago branch of toe Society of Accountants today. Mr Marshal!! said New Zealand was encouraging trade with Brittain by retaining toe preference given to imported British goods at a higher rate than was required under the 1959 trade agreement. “It is not possible to assess accurately what this costs New Zealand in additional overseas exchange and loss of customs revenue,” he said, “but if the full amount of j the preference were used, I the cost in additional overseas exchange of British preferences would be £lB milllion a year.”

Mr Marshall said longstanding commercial associations helped trade between the two countries. “The balance sheet shows that New Zealand each year usually spends more in Britain than Britain spends in New Zealand. Last year, it was £l6 million more.

“On commodity trade, Britain buys more from us. In toe servicing trade—toe invisible trade of shipping.

insurance and travel—New Zealand pays Britain more. The annual balance is an adverse one for New Zealand,” he said. “New Zealanders are avid travellers. The pattern for most young people is that they think they should travel before getting married or settling in a job.” This urge to travel was costing £l9 million a year in fares and the money people took with them, Mr Marshall said. “We look at that with rather anxious eyes “But we feel it is a good thing for New Zealanders to travel, that they will be better citizens when they come back.” Mr Marshall said there were many factors contributing to toe changing pattern of the country’s trade. “British manufacturers are increasingly establishing toeir plants in New Zealand and we welcome them.

“In some cases, the shift of trade has been due to the inability of the British manufacturer to compete even with the advantage of preference in the New Zealand market. The sad story of the cotton industry illustrates that,” Mr Marshall said.