Trade terms worst since war—Mr Marshall
(New Zealand Press Association) ♦ WELLINGTON, October 16. New Zealand’s terms of trade were now lower than at any time during the whole of the post-war period, the Deputy Prime Minister (Mr Marshall) said in a statement today in his capacity as chairman of the National Development Council.
He said the council had considered reports on the economic situation and had noted with concern the recent deterioration in New Zealand’s terms of trade, especially in view of the implications for this country of Britain’s entry into the European Economic Community.
What particularly con- ' cerned the council was , that previous adverse i movements in the terms ] of trade had almost al- ! ways been caused by un- j satisfactory export prices, although often ( when one commodity, such as wool fell, meat or dairy produce had remained relatively fav- ] ourable. The new circumstance was that import prices were rising with extreme rapidity, reflecting the inflationary trends in the countries from which New Zealand bought its imports. The net effect was that the terms of trade were now lower than at any time in the post-war period. Mr Marshall said the council felt the public must be made more aware of the implications of adverse terms of trade. These had been spelt out by the National Development Conference but needed to be reiterated. Must export more New Zealand would have to export more or get better prices for exports in order to keep on importing the goods and services needed for a reasonable increase in living standards. More emphasis had to be placed on the export of manufactured goods and forest products. ’
“We need to ensure that manufacturing industries are competitive both in New Zealand and abroad,” he said.
The recent export performance, which was well up to N.D.C. targets, was considered by the council to be a compensating factor, he said. The conference had contemplated a balance-of-pay-ments deficit made good by external borrowing in the target years, but for two years running New Zealand had earned more abroad than it had spent. Unlike some larger and more self sufficient countries whose exports and imports were relatively small proportion of gross national product, New Zealand had to export to live well. “The development of internationally competitive industry has to be reached if we are to reach the export targets and reach the planned increases in living standards,” he said.
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Bibliographic details
Press, Volume CX, Issue 32430, 17 October 1970, Page 1
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400Trade terms worst since war—Mr Marshall Press, Volume CX, Issue 32430, 17 October 1970, Page 1
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