Trans-Tasman Trade Not Yet Stimulated

Press, Volume CVII, Issue 31522, 9 November 1967, Page 26

Trans-Tasman Trade Not Yet Stimulated

(New Zealand Press Association)

WELLINGTON November 8.

The failure of the New Zealand-Australia Free Trade Agreement to stimulate trade between the two countries was a matter of concern, the president (Mr H. W. T. Nolan) told today’s annual conference of the Plastics Institute of New Zealand.

“I must point out the concern expressed by manufacturers, individually and collectively, at the apparent lack of real progress being made by the agreement in stimulating trade and, in particular, in helping to correct the current imbalance of trade between New Zealand and Australia,” Mr Nolan said.

Because New Zealand was a low tariff country, he went on, because it was endeavouring to increase its range and depth of manufacturing industries, and was dependent for most of its overseas exchange earnings on the sale of primary products subject to price fluctuations, it was necessary to emphasise that without adequate protection, by whatever means, New Zealand’s industries were extremely vulnerable “As a nation we must be made aware that our work force will increase by 50 per cent, or half a million people, during the next 20 years, and society cannot tolerate a situation which could force New Zealand industry to retrench because of inadequate protection,” Mr Nolan said.

One of the most significant factors affecting all members of the institute had been the reduction in import allocations for raw materials, but notwithstanding that reduction the industry had been able to increase the value of its output by nearl; - ssm for the year which ended on March 31. This growth was not as large as it would have been in normal trading circumstances, but it was pertinent to note that the plastics industry had achieved an increase in value of output of 111 per cent, while manufacturing as a whole had achieved an increase of only 8J per cent, Mr Nolan said.