NEW MARKETS

Gisborne Herald, Volume LXXIII, Issue 21964, 7 March 1946, Page 5

NEW MARKETS

DOMINION'S NEED BIG PROBLEMS AHEAD DISPOSAL OF PRODUCTS The absolute dependence of New Zealand economy on grass and the necessity to expand overseas markets to dispose of increased primary production formed the subject of an address by Mr. ,J. T. Martin, managing director of Wright, Stephenson Company, of Wellington, at the Rotary Club in Auckland,

“Every section of the _ community suffers if primary production suffers,” Mr. Martin continued. “The average standard of living is not an abstract term, but is the quotient revealed when the productive wealth of the nation is divided by the total population. Prewar, the high water mark of taxation was £37,000,000, but to-day £43.000.000 is being provided for social and family amenities." Revision of Prices This Year Mr. Martin questioned how this could be met and said that New Zealand must not delude itself. Britain had undertaken to buy all primary production until 1948, but prices came up for revision in June of this year. If there was a drop of a penny a pound New Zealand would suffer a loss of over £6,000,000. The output of primary products was increasing yearly in New Zealand and had now reached a total of 764,000 tons. The production of butter and cheese was increasing by 2600 tons a year to 259,000 tons, enough to feed 10,000,000 people; meat production had risen by 100,000 tons in 10 years to 345,000 tons, and wool by 370.000 bales to 1,000,370 bales. Britain was asked to absorb all this, Mr. Martin continued, but whether it could do so was an important question. British fanners were asking for import controls and were being subsidised, but there was a demand for cheap breakfast foods and it was obvious that subsidising could not continue indefinitely. Britain must continue to buy from places like New Zealand. Relying entirely on British ships for export and dependent on the British market. New Zealand was in no position to bargain, Looking' to the Future The possibility that Britain in the future would not protect the New Zealand standard of living by buying so much of its produce was emphasised by Mr. Marlin. This year and the next were urgent ones in the fight against starvation, but in 1948 it was possible that the position would be changed and food would be obtainable from Europe. “New Zealand is different from the other Commonwealth members,” stated Mr. Martin, “as it is far more dependent on Britain. We export 84 per cent of our primary produce to Britain, and Australia comes second with 54 per cent.” New Zealand must examine other trade possibilities, he said, and pointed out that Australia was far ahead in the export business. A great field existed in India and the Far East, and Australia had built up before the war a very profitable trade, A direct shipping line to the East was urgently needed, Mr. Martin continued, as the two Japanese lines and the one Dutch line were no longer in existence. The Government was prepared to subsidise a New Zealand shipping company until it could pay its way. Wealth Dependent on Grass

If a favourable export trade position was not enjoyed in the future. New Zealand, he said, must alter its scheme of farming. He instanced past achievements in this direction, and gave llax production as an example. New Zealand had had an important flax export trade once, but now the industry had dwindled. Denmark after its defeat in the last century by Germany had accepted the loss of rich provinces and had modernised and changed its production thereby creating prosperity. New Zealand was better placed than any other country to produce cheap primary produce, Mr, Martin concluded. Good grass and a favourable climate were contributing factors. Approximately 33,000.000 acres of New Zealand were grass land, and it was not often realised that the wealth of the country was dependent on grass. Overseas, New Zealand grasses, possessing a high reputation, were in great demand and an important export industry of 10,500 tons a year with a return of £1.750,000 had been established.