“No-Beef” Suggestion Defended

Press, Volume CVIII, Issue 31784, 14 September 1968, Page 14

“No-Beef” Suggestion Defended

“If we want improved standards of living in the face of inescapable economic conditions resulting from falling overseas prices and higher import prices, we must forgo some of the sprats or beef however desirable they may seem, to catch the mackerel of a higher standard of living and reduced unemployment,” said the managing director of P. Feron and Son, Ltd (Mr M. L. Newman) yesterday.

Mr Newman was replying to a letter to the editor of “The Press” from Mr P. H. Wallis, of Wallis Bros, Ltd, criticising Mr Newman's suggestion to the Chamber of Commerce to increase its exports by lowering the standard of the New Zealand table by the removal of beef. “This is possibly a difficult concept but one which we must all learn and adopt, or suffer the consequences,” said Mr Newman. “I am sure Mr Wallis is not so stupid as to suggest we adopt the second alternative.” Mr Wallis said: “While agreeing with Mr M. L. Newman’s suggestion to the Chamber of Commerce that New Zealand must increase its exports, should this be done by lowering the standard of the New Zealand table by the removal of beef from it?

"Apparently Mr Newman considers sausages and mutton suitable substitutes for beef. If Mr Newman will

back his words with action and eat no other meat for 12 months, we offer to supply him with all the sausages and mutton he can eat for that period free of charge, providing he reports his findings and opinion in this paper at the end of this period. Mr Newman replies: “It is very nice of Mr Wallis to make this offer. He should be warned that I have a rather large family, and in any case I would actually prefer fish, which is so much better for you.

“Yes, I like my beef as well, but with the price higher than mutton, I shall be quite satisfied to eat more mutton, which my wife already serves to us in many interesting ways. An Example “The remarks in the Chamber of Commerce about diverting exportable products from New Zealand consumption to export was by way of example in a report on the National Development Conference. At this conference businessmen, trade union leaders, Parliamentarians from both sides of the House, professional men and economists all declared themselves in support of the programme of this conference, a programme which cannot succeed unless there is a nationwide change in attitudes and policies.

“In the words of the report of the Targets Committee, ‘Relative changes in export and import prices can have profound effect on our prosperity. Looking back over the five most recent years the highest growth rate bore a strong correlation with years when export prices were favorable in relation to import prices. The trend was

especially favourable from 1964 through to the December quarter, 1966. After that a serious deterioration set in. “ ‘lf standards of living are to be maintained or increased in a period of falling export prices, additional ways of earning exports must be found to pay for the needed imports. We are now passing through a period of rising import prices and falling export prices. Even with the best will in the world we are unlikely to return to the boom growth rates of the mid 19605. “ ‘The Targets Committee sought to fulfil (its) term of reference by making two sets of projections. The first assumed that attitudes and policies would continue. The growth rate implied by this

set of projections was low. The second assumed that it would be possible so to change attitudes and policies that a higher growth rate could be achieved. The low projections indicate growth rates which would be unacceptable. They would be below average rates achieved during the last decade and they would tend towards substantial unemployment. “ ‘The high projections indicate growth rates which would present a considerable challenge especially in the export effort needed and in the levels of investment and savings required. At the same time the higher growth rates would result in much more satisfying in living standards and in full utilisation of manpower.’ ”