SAFE FOR YEARS

Evening Star, Issue 25301, 9 October 1944, Page 6

SAFE FOR YEARS

BRITISH MARKET FOR OUR PRODUCE PROTECTION bTuNECONOMIC INDUSTRIES DEPLORED CURRENCY RESTORATION TO STERLING PARITY DUE (P.A.) AUCKLAND, Oct. 9. (P.A.) AUCKLAND, Oct. 9. The opinion that the four-year agreement for the supply of dairy produce and meats entered into between the New Zealand and the United Kingdom Governments would safeguard the food supplies of the United Kingdom during the difficult post-war years when foreign gold might be used temporarily to divert food from normal channels, was expressed to-day by Mr William Goodfellow, managing director of Amalgamated Dairies Limited, in his first interview since his recent return from a visit to America and Britain.

The .United Kingdom, he said, would take all the butter, mutton, lamb, and beef New Zealand could produce for many years to come, and it was. therefore, prudent to safeguard our only long-term market. For the next two to four years there would be a milk shortage in Britain, and it was probable that no substantial quantity of butter or cheese would- be manufactured in the United Kingdom in future, as_ all the milk' produced would be required for town supply. Due to industrialisation and immigration prospects, the Australian surplus of dairy produce for export was likely to decline over the next decade, and with »the, transfer of the Baltic States to Russia the outlook for New Zealand' dairy produce, and especially butter, was good. Canada had greatly expanded her exports of cheese and bacon for shipment to the United Kingdom, and this fact should not be overlooked, nor the ( .enormous wool stocks held in Britain. Nevertheless— He had no hesitation in saying that New Zealand should now concentrate on the expansion of the primary industries, as any further development of highly-protected local industries' would simply increase farm costs to such an ex- : tent as to make further expansion of agriculture impossible. The . fostering of uneconomic industries in New Zealand was a serious mistake, and if persisted in would definitely reduce the standard of living. Another factor that kept costs up was the depreciation of our currency by 25 per cent. That exchange adjustment was made to help the sheep farmer during the big slump, which was long since past. New Zealand currency should now resume parity with sterling. " From inquiries > regarding the shipment of North, : African phosphates, the indications are that ample supplies will *be available when ships can be secured," said Mr Goodfellbw.