Call For “Realism” On Economic Situation

Press, Volume CVI, Issue 31320, 16 March 1967, Page 12

Call For “Realism” On Economic Situation

“The Press" Special Service WELLINGTON, March 15. The old conflict between sectional interests must surely be replaced by realism on all sides, said the chairman of the Meat Board (Sir John Ormond) today.

Sir John Ormond was commenting on New Zealand’s economic difficulties. Addressing the half-yearly meeting of the electoral committee of the board, he said: “I believe that the economic problems New Zealand has been facing are clearly recognised and understood by most New Zealanders.

“There is an increasing awareness of our common interest as New Zealanders in taking the right kind of, action to strengthen our economy, and build for our future. “I am sure we shall see co-operation among all sections of the community. The old conflict between sectional interests must surely be superseded by a realism on all sides. “We have to increase greatly our efficiency as a nation, not only as we are doing, in our farming and our meat export industry, but also in our transport, our commercial administration and our selling,” said Sir John Ormond.

“We shall enjoy only such future as we work for and earn. Farmers know this well enough and have done a magnificent job already in the reinvestment of their resources into their land and therefore

in the expansion of the country’s earning capacity.”

Sir John Ormond said: “We must expect that for a primary producing country, fluctuations will occur in prices for exports products. Climatic and other factors affecting the livestock industry world-wide are reflected quite directly in the fortunes of agricultural producers. So are economic conditions in the countries to which we sell.

“This is not to say that we must take these facts for granted and do nothing about them, but we must realise that there will be ups and downs in the international prices of livestock products.

“We who have been farming over a long period know that there are good years and bad years, and if we are wise we plan as far as possible to even out the effect. We recognise, too, how closely interrelated are our meat and wool industries and how the fortunes of one closely affect those of the other. “Nonetheless, we should realise that New Zealand’s export earnings from all her major products reached a record level in 1966. The pro-

ducts and by-products of our meat industry continued to show sound growth in their total export earnings. At the same time our meat producers substantially increased their basic flocks and herds,” said Sir John Ormond. “This is New Zealand’s major industry and it is achieving very healthy expansion, thanks to the energy and initiative of producers, and the activity of our exporters, in spite of the hurdles of increasing costs and capital problems on the farms. “Our spending is sound when it is directed to expansion of our basic productive resources. Land development continues to be our priority investment and there must be no slackening in this, nor in the facilities for servicing of export production. At the same time we should be making much better use of the capital assets we have.

“New Zealand’s industries have many millions invested in machinery, buildings and equipment. We could well make greater use of these capital assets, which for many hours of every week lie idle,” said Sir John Ormond.