Exports cut by high N.Z. dollar

Press, 2 June 1986, Page 10

Exports cut by high N.Z. dollar

PA Wellington The high value of the New Zealand dollar was probably the main cause of an almost 25 per cent drop in exports during the March quarter compared with the same time a year ago, said the Minister of Trade and Industry, Mr Caygill. Mr Caygill said the aluminium market was suffering from low international prices, which contributed significantly to the manufacturing figures. The other big fall was in meat products, and that was largely because of the effects of the freezing strike; he said.

The figures were likely to show a significant increase in exports in the next quarter as freezing works caught up. Manufacturing was holding its own in its share of total exports, which he said was pleasing.

Twenty-nine per cent of exports came from the manufacturing sector in the last three months of the year, slightly up on the same period a year ago.

Looking ahead, the exchange rate had fallen about 5 per cent in the last month which would give some help to exporters.

Mr Caygill also said

that falling import prices had been feeding through into the cost of living.

The nation’s balance of payments had not been dramatically expanding, and at present stood at broadly the same level of about $2OOO million for some months, he said.

National’s spokesman on overseas trade, Mr Warren Cooper, described the figures, showing a drop of nearly $750 million, as frightening.

Exports over all sectors for the March quarter were down 23.7 per cent at $2388.5 million, compared with the 1985 March quarter of $3132.4 million, he said.