Caffl for GMm'teMradle

Press, 14 May 1984, Page 8

Caffl for GMm'teMradle

PA Dunedin New Zealand’s trading problem could be fixed through a policy of countertrading, exchanging homegrown products for overseas materials, the leader of the Social Credit Party, Mr Beetham, said in Dunedin yesterday. The country should get a slice of the $7OO billion worth of counter-trading done throughout the world annually, he said in the keynote address of the South Island Social Credit convention.

“While other major Western nations, including the United States and West Germany, show a willingness to trade with the Third World on counter-trading terms, the National Government of this country adopts a head-in-the-sand attitude,” he said.

“It is content to ignore the many and varied opportunities that counter-trade offers for expanding the volume, and range of goods and markets for New

Zealand’s primary produce.” New Zealand must face the reality that many Third World countries cannot afford to use foreign exchange.

A recent deal between the New Zealand Meat Board and Poland, involving the exchange of lamb for heavy engineering equipment without using hard foreign currency, was a sign of changing times.

“It is clear that as New Zealand becomes increasingly locked out of the European Economic Community and faces protectionist measures in the North American market, more and more of our trade will be conducted with the Third World,” he said. The Government “must move quickly” to share in the world’s counter-trade, which comprised 25 per centof all international trade.

“Quite simply, New Zealand must embark on a more vigorous and innova-

tive trade policy if we are to make progress in reducing our balance of payments deficit and obtain a more equitable return for our exporters.”

Mr Beetham also attacked the New Zealand Party, claiming that by August Social Credit would poll about 13 per cent support, with the “Jones party” well and truly out of the race.

“As usual, we will be out to win. We are certainly aiming at capturing more than the three seats Mr Jones says we have our eyes on, and Otago is one of them,” Mr Beetham said.

“The enforcement of orthodox economics, which Mr Jones feels is essential, is the last thing Social Credit wants—it would be the kiss of death.” Mr Beetham called the Labour Party’s financial and economic policy, led by the finance spokesman, Mr Roger Douglas, “conservative, monetarist and re-trenchment-like,” and simi-

lar to those advocated by the National Party backbencher, Mr Derek Quigley.. “If Labour were to win an election, this approach would automatically result in even higher unemployment than the worst we have experienced under the Muldoon administration,” he said.

“This result has been clearly seen by the party’s president, Mr Jim Anderton, and explains his attack on the free marketeers within the Labour Party at its recent regional conference in Auckland.

“The result is that the public will have no idea of what the Labour Party stands for.”

Mr Beetham said the basic economic philosophies of Messrs Quigley, Douglas, Lange and Jones, of free marketing, were not workable in “a sea of international protectionism.”