OUR ECONOMIC STABILITY

Dominion, Volume 38, Issue 3, 28 September 1944, Page 4

OUR ECONOMIC STABILITY

There was a realistic note in the address given by.the DirectorGeneral of Agriculture, Mr. E. J. Fawcett, to the Wellington branch of the Economic Society during the week. He attributed the high standard of living in the Dominion in the main to “the volume of exported products from the soil,” and that is much nearer the mark than the claims so frequently made that it is the result of governmental policy. It was logical for the speaker to contend that, in the future, the economic stability of the Dominion must rest upon the satisfactory disposal of its surplus produce overseas. That is more essential here than in the other Dominions where the local demand takes a larger proportion of the primary produce. 1 his reliance on overseas markets exposes New Zealand to the full effects of world price fluctuations. That is a matter beyond our power to control, and effort must be directed to ironing-out the effects. Discussing export trade prospects, Mr. Fawcett said that the United Kingdom would remain the chief outlet, and this view will be widely endorsed. It may be that in the post-war period other markets may become more accessible, but it is inadvisable to build on what, after all, is only conjecture. This country has established a market in Great Britain by the quality of its produce, and when conditions are again normal quality will be the decisive factor. That is why, although quantity is at present the urgent need, every care must be taken to see that the quality of our produce is maintained at the highest possible level. There will always be room for improvement in this respect, and it is along this avenue that the Dominion should be able to make steady progress. Actually what is needed is a dual and intimately related policy. There must be a great reserve of potential production in a raising of the standards of productive efficiency on the one hand and the improvement of quality on the other. The farmer who. by careful breeding, testing and culling lifts the average production of his dairy herd from, say, 2501 b. to 3001 b. per head is contributing to the twofold advance. The man farming high or backcountry who, by using a better type of ram can improve the quality of his clip will benefit both himself and the Dominion. This is a matter which deserves close attention. If the carrying capacity of much of this country is falling, as has been reported, then it becomes of greater importance that whatever stock is carried should be of the best possible quality. There will be many aspects of national life calling for attention in the post-war years, and the needs of the most vocal section of the community may be by no means the most urgent. The first essential is to strengthen the economic foundations, and increased exports can most effectively do that. In what must be an uncertain outlook one objective stands out, and that is the maintenance, at the highest possible level, of the national income. If tfifere is any more practical way of doing that than by increasing and improving the output of produce for sale overseas no one lias yet suggested it.