'More Overseas Trade Posts Needed’

Press, Volume CX, Issue 32349, 15 July 1970, Page 32

'More Overseas Trade Posts Needed’

(New Zealand Press Association)

WELLINGTON, July 14. Lack of economic orientation within the Department of Foreign Affairs was partly responsible for the failure to establish urgently needed trade posts in South America and the Communist bloc, the Dominion president of Federated Farmers (Mr P. S. Plummer) said today. Mr Plummer also told the federation’s “Dominion conference that the Government should continue to take out insurance against any cut in the British market.

“T h e Government must establish further trade posts overseas in areas which give promise for expanded opportunities for primary produce from New Zealand,” he said. “I would like to see a permanent post established in South America on the Pacific coast. Also, top priority must be given to establishing a post in a Communist bloc country.” He said a post could be established in Moscow, Warsaw, or Belgrade without signifying support for the Communist ideology. Federated Farmers had taken all reasonable opportunities to expand trade, and was the only national farmers’ organisation that had got into the forefront of trade conferences in the Pacific Basin.

Federation representatives , had battled hard in the International Federation of Agricultural Producers and in the Pacific Basin Economic Cooperation Council. Access gained and maintained to the United States market for beef and lamb, and prospects of expansion, was a reward for persevering in presenting a case to Washington, he said. International advances in the marketing of milk • powder products were examples of some success in the dairy industry. Discussing Britain’s proposed entry into the European Economic Community, he said the plain fact was that New Zealand still did not know what its position was going to be. The effect on New Zealand farming if Britain- entered without comprehensive safeguards for New Zealand would be catastrophic

“The E.E.C. is the greatest international threat confronting our economy,” he said. The new British Government’s plan for levies on imported meat as a preliminary step could mean a shorter breathing space for New Zealand produce, but otherwise he doubted whether the change of government would make much difference.

He. said the last Budget recognised the vital importance of agriculture to the New Zealand economy and would help to restore the confidence of farmers in their industry. Although the Budget was designed to restrain inflationary pressures and bring about a more equitable and sensible distribution of resources, this sort of assistance would not act as a lasting cure for farmers’ troubles. “It merely props up the patient,” he said. The only sound solution was for farming to be placed on the same basis as other industries to compete for the scarce resources of capital, land, labour, and materials. Drought Relief During last summer’s drought it was obvious that standard drought relief measures were insufficient, and the federation had worked hard to get extra assistance particular? the 50 per cent subsidy on feed grains. He said further legislation should be brought down to enforce contracts and stop “the law of the jungle” ruling in industrial matters. “The economy is suffering from labour shortages, inflation, and union militancy," he said. “Unions which have made contracts with employers have virtually torn them up and demanded further wage increases under threat of strike. “Delays and stoppages in our freezing works have got completely out of hand.” The Government must accept its responsibility to bring down further legislation to enable contracts to be enforced. Repercussions When large companies went ahead with direct bargaining their decisions had repercussions on the wage structures throughout New Zealand. Submissions on industrial legislation and procedures made to the Government by an Employers’ Federation committee could form a basis for industrial legislation, given co-operation between the Government, the Federation of Labour, and the Employers’ Federation. He said the National Development Conference had underestimated the labour requirements needed to achieve its targets, and an extra 5000 immigrants should be brought to New Zealand annually. “The present Government policy which steps up the rate by 1600 persons a year is only playing with the job,” he said. The conference called on the Government to: Take stronger steps to halt ever-rising costs and promote increased competition by the immediate issue of import licences for a wide range of goods still subject to quota restriction. Eliminate the protection the Government accords servicing industries. Introduce urgent measures to promote improved industrial relations, control strikes and prevent labour stoppages. Take more resolute measures, without impairing the export industries, to reduce the annual rate of expansion in Government expenditure to 7 per cent —the level recommended by the Monetary and Economic Council. Spend greatly increased amounts on promotion and marketing.