Closer Aust.-N.Z. ties ‘eminently sensible’

Press, 18 November 1981, Page 20

Closer Aust.-N.Z. ties ‘eminently sensible’

The concept of closer economic relations between Australia and New Zealand was eminently sensible, according to the chairman of the Australian Wheat Board, Sir Leslie Price. The two countries were close neighbours, had many social ties, and in many ways could be virtually regarded as one country. Sir Leslie said in Christchurch during the course of a New Zealand visit. However, for Australia to produce all the what for both countries and for New Zealand to supply both countries with dairy products would not be easy, because if New Zealand farmers were to give up wheat growing it would have to be replaced by an enterprise that was viable and even more profitable. It was necessary to have a crop or enterprise that could be adapted to the conditions in the country where the change was taking place, and if it meant that the commodity being replaced had to be imported, then the replace-

ment enterprise also had to produce a commodity that could be exported to maintain the balance of trade and foreign exchange. However, Sir Leslie believed that the world was getting closer to the stage where it could be easier to

make such changes in production as food became more important in the world. In newly independent and developing countries populations were rising rapidly but food production, in spite of the best efforts, was not increasing as fast. It was likely to be more than a generation before food production in these countries neared its potential. 1 In the meantime prospects were good for all sorts of food, but particularly grain — a basic requirement of man and animals. World grain stocks were also gradually falling and were less than they were 20 years ago. Sir Leslie said he believed that in the longer term the world would also require more animal protein. Sir Leslie, who has been a member of the Australian Wheat' Board for 10 years and chairman for the last four, has come to New Zealand in response to an invitation from the deputy-chair-man of the New Zealand What Board, Mr A. G. Beadle.

New Zealand was a small market for Australia’s wheat, but Sir Leslie said it was an important one and they liked to make provision for New Zealand taking about 50,000 tonnes of their crop. Last year New Zealand imported more than 53,000 tonnes from Australia. Sir Leslie, who has farming interests in the Darling Downs in Queensland, said it was important that while he was in New Zealand he should hear the views of the New Zealand board about the quality of Australian wheat service to New Zealand. After a patchy season for

wheat growing in Australia, Sir Leslie said, it seemed that the latest crop would produce at least 14.5 million tonnes and possibly 15.5 million tonnes, which would be above average for the g last 10 years but about average for the last five years. Australia’s record crop was in 1979 at 18.2 million tonnes. New Zealand produced about 325,000 tonnes last year. While wheat prices had receded from levels of a year ago, Sir Leslie said, he believed that the average grower in Australia would still be receiving a profitable price.