N.Z. Urged To Exploit Australian Market

Press, Volume CII, Issue 30264, 17 October 1963, Page 25

N.Z. Urged To Exploit Australian Market

(New Zealand Press Association)

WELLINGTON, Oct. 16. New Zealand businessmen should seek markets in Australia now, said the chief economnt of an Australian firm of management consultants, Mr Philip Shrapnel, in an address to Wellington

businessmen today. Australia had j ust come through its worst recession for 20 years, but its economy was now expanding rapidly, and it was plainly in for a period of flourishing prosperity for the next three to five years, said Mr Shrapnel. "If you want to sell on the Australian market, now is the time to look around," he said.

The Australian Government bad endorsed a “very expansionary” Budget, for 1963-64 and was planning to increase its spending by about £2OO million or 9) per cent. The Australian banking system was in a liquid position. Its increased advances of £7O million last year were expected to rise £9O million this year, a factor which would itself encourage expansion. There had been a substantial rise in hire purchase advances in the last 18 months. The greater proportion of these advances had been for cars with a consequent fall in the demand for household goods. Next year, however, as cars were paid off, a rising demand for household durables could be expected. Retail sales were rising. There was virtually full employment and wage increases were likely soon as a result of the Arbitration Court’s triennial review.

The New Zeetaod exporters should “hop in for their chop” before the Government took some action to dampen down the demand likely to result from an expected rise kt wages after the review.

Other pointers to Australia’a booming contHttoes were the rise in share prices, which were expected to continue into next year, and a calculated increase of 10 per cent in "non-dwelling”

building and of 13 per cent in the building of dweUngs. Australia's rural sector was expected to spend freely because < had aaWnvad stable

costs and rising income. Though business spending fell by 25 per cent in 1960, it was 32 per cent up last year and was expected to continue rising normally Personal consumption was expected to accelerate.

Next year total spending in Australia was expected to rise by 6.7 per cent. Little of the increase would be caused by pay rises. Australia’s balance of payments was in a healthy position and her international

reserves were rising with the result that there was no possibility that import restrictions would be impose# in toe near future. New Zealand goods would thus have every opportunity of selling freely on toe Australian market provided they were reasonably competitive.