PROSPEROUS NEW ZEALAND

Evening Star, Issue 25745, 19 March 1946, Page 5

PROSPEROUS NEW ZEALAND

AUSTRALIAN OFFICIAL'S REPORT RISING PRIMARY AND SECONDARY INDUSTRIES (N.Z.P.A. Special Aust. Correspondent.) SYDNEY, March 18. That New Zealand is in a prosperous condition, and will be among the first countries to return to normal peace-time conditions, is the opinion expressed in the report of the Australian commercial secretary in New Zealand. The report characterises the economic prospects as promising, with exports buoyant, and production rising in the primary and secondary industries as a result of the repatriation of servicemen and women. Serious short-term problems at present confronting New Zealand are listed as the consequences of drought in the North Island, destruction of softwood reserves by forest fires, shortage of raw materials, scarcity of female labour ill factories, and news of possible modifications in Imperial preference which may threaten exports to the United Kingdom. On questions of Government policy in encouraging the establishment of new factories, and protecting them in many cases by import licensing, the report makes no pronouncement except to comment that it is certainly creating new jobs, though tending to attract men away front primary industry. IMPORTS FROM AUSTRALIA. Raw material shortages are a present and immediate problem. The New Zealand Commissioner of Supply visited Australia recently to try to secure some of the goods most urgently required. They include cotton and) rayon materials, metals, cardboard, and chemicals. The position regarding metals, and chemicals is serious, and the prospects are not promising. New Zealand is making efforts to secure increased supplies of motor tvres from Australia as a temporary measure pending production bv factories in Wellington, Christchurch, and Auckland. The New Zealand plastics industry is described as producing a Wide range of articles, many of which are of equal standard to those produced in Australia and elsewhere. The industry is now busily occupied on local orders, but appears to have an ultimate capacity which will ex-, cecd requirements. This seems to presage strong internal pressure in the future as soon as labour and material shortages are remedied. The principal interest to Australia is the supply of phenol formaldehyde. PROCESSED FOODSTUFFS. The expansion of the processed foodstuff industry during the war was most marked, and the report carries details of increases in the production of tinned meat, peas, and butter. Processed fruit is limited by a shortage of suitable canning; fruits, which means that Australia’s canned food trade to New Zealand, being mostly fruit, will not suffer. As a result of the' war-time shortage of imported fish liver oils, New Zealand has now become an exporter, and Australia is one of her customers. The oil is extracted from shark, ling, groper, and biugfish livers, most of which are richer in vitamins that cod liver. The report predicts that the industry will ‘Continue ’on a sound economic basis. Australia is placed on a parity with the United Kingdom as a country from which radio parts can be imported in quantities up to 50 per cent, greater than in 1945. Australian molasses is again being purchased by New Zealand after a period of import restriction imposed to facilitate clearance of stocks held by the Internal Marketing Division. These and other facts bear out the contention that, in spite of shortages of shipping, trade across the Tasman is in a healthy condition, and New Zealand is becoming steadily stronger in secondary industries.