Export virtues stressed

Press, 24 October 1984, Page 21

Export virtues stressed

NZPA Staff Correspondent Kyoto New Zealand would continue to be a competitive exporter of a range of forestry, agricultural, and primary manufacturing products, in spite of an economic performance that over recent years had caused considerable dismay, Mr Barrie Downey, managing director of Marac Holdings, told a high-powered gathering of Japanese and New Zealand businessmen in Kyoto. He assured local delegates to the eleventh JapanNew ' Zealand Business Council meeting that regardless of any change of government, the objectives ' of the council would be consistent with the country’s economic and social goals. While present economic forecasts that New Zealand faced higher inflation were being made at a time of uncertainty as businessmen awaited next month’s Budget, planning could continue

with confidence over the longer term, said Mr Downie, the chairman of the New Zealand chapter of the council

Japan’s own performance was the envy of many countries and its growth was forecast to increase to 5 per cent per annum in 1985, while it moved towards a more balanced economy in which expanding domestic demand would complement a further rise in exports, he said.

Japan-New Zealand trade reached a record level of 53.2 billion in the year to June, 1984, but there was an imbalance in Japan’s favour of some ?200 million on invisibles (non-trade items such as freight, insurance, and interest payments). Japan was now New Zealand’s biggest two-way partner and largest export market, taking more than 16 per cent of its goods, compared with the United States, Australia, and Britain, all at around 13 per cent. The

trend clearly pointed to Japan occupying an even greater proportion of future trade, said Mr Downey.

Mr Fumio Tanaka, chairman of Oii Paper Company, which has a joint pulp venture with Carter Holt Holdings, Ltd, told delegates the increased trade was a matter of mutual congratulation.

Mr Tanaka, chairman of the Japan committee of the council, made reference to the positive posture for ecomomic recovery indicated by the moves made by the Government, such as the trade and tourism mission dispatched by the Minister of Overseas Trade and Tourism, Mr Moore. He also referred to increasing cultural exchanges and said the number of Japanese tourists visiting New Zealand was forecast to reach a record-breaking 42,000 this year (up from 35,000 in 1983). The council later broke into three closed working-

discussion groups. The raw materials and manufactured products group was expected to focus on: wool (Japan is New Zealand’s biggest customer); forest products; minerals, where New Zealand is sole supplier of ironsands which the Japanese said would this year be boosted by 400,000 tonnes to 22. million tonnes; and New Zealand’s developments in telecommunications and computer software. In both wool and forest products, as well as aluminium, the potential' for Japanese investment in New Zealand was expected to be emphasised.

Traditional access problems with meat, marine, and dairy products were also expected to be raised and the Japanese have indicated their intention to again air their concern over the gradual restriction of their access to fishing grounds.