Big Rise In Cost Of Overseas Services

Press, Volume CVI, Issue 31359, 3 May 1967, Page 3

Big Rise In Cost Of Overseas Services

(New Zealand Press Association) WELLINGTON, May 2. During the year ended March, 1967, receipts from exports exceeded payments for imports by £36.7 million, but there was a net deficit of £90.9 million on invisible transactions, the Reserve Bank announced today.

Thus on current account there was a deficit of £53.3 million. This was financed by a net capital inflow of £55.9 million, leaving an overall surplus of £2.6 million.

Compared with the previous March year, export receipts rose by £lO.B million to £397.9 million.

Receipts from dairy proproducts increased by £13.4 million to £112.7 million and there were smaller rises in receipts from miscellaneous primary products (up £7.9 million). These gains were partly offset by falls in receipts from wool (down £7.1 million) and meat (down £3.4 million). TIME LAG Because of normal timelags between auctions and settlements the deterioration in the wool market did not seriously affect receipts in the March year but it can be expected to influence subsequent periods in greater degree. Export receipts were made up as follows: — 1967 1966

year, decreased by £lO.O million to £361.2 million. Payment's for Government imports were £0.9 million higher and payments for private imports fell by £10.9 million to £324.0 million. Thus on trade transactions the surplus rose by £20.9 million to £36.7 million. INVISIBLES

Invisible receipts, which totalled £46.1 million, were £3.9 million higher than in the year ended March, 1966. However, this rise was more than offset by an increase of £19.3 million to £136.1 million in invisible payments, so that the net deficit on invisable transactions rose by £15.4 million to £90.0 million. Invisible payments were made up as follows: £m Transport 22.3 Insurance 3.9 Travel 22.7 Dividends, interest— Private 18.2 Government .. 9.2 Other Govt, spending 17.1 Commission and royalties 4.6 Rebates and primages 0.8 Expenses of N.Z. Arms 12.8 Personal remittances . 3.7 Film hire and expenditure . 1.2 Religious and charitable 2.4 Legacies 3.1 Immigrants'’ transfers 5.2 Transfers by temporary residents 6.1 Miscellaneous .. 2.7 Total .. 136.1 As a result of these changes there was a slight improvement in the current account position compared with the previous year, the deficit falling by £5.5 million to £53,3 million. CAPITAL FLOW

ended March, 1966, and included the following transactions:— Loans—£m United Kingdom 11.6 Midland Bank 10.0 Euro-doliar . 3.4 World Bank 7.9 Australian banks .. 12.0 Sterling/ Deutschemark .. 6.9 Bank of International Settlements .. 10.8 Total 62.6 Less Repayments:— World Bank (1.8.R.D.) 0.4 United Kingdom .. 6.7 United States .. 1.6 Net decrease in overseas investments by Government .. 2.6 Total .. 56.5 Less net private capital outflow 0.6 Totai .. 55.9 The net inflow on capital account more than financed the short-term fall on current account and the over-all result was a surplus of £2.6 million.

Import payments, compared 'with those for the previous

The net capital inflow of £55.9 million was £20.7 million higher than for the year

£m £m Butter > .. 58.8 53.9 Cheese . 27.5 22.6 Other Dairy » . 26.5 22.8 Meat .. » . 103.9 107.4 Wool . 108.3 115.4 Other animal . 34.6 31.5 Forest products . . 14.0 12.8 Other primary . . 15.9 13.9 Mis cell. . 8.5 6.9 Total 397.9 387.1 ■ ■ i. ———-