DOMINION DISPARITY IN RISE OF IMPORT PRICES COMPARED WITH EXPORT

Gisborne Herald, Volume LXXVII, Issue 23352, 7 September 1950, Page 6

DOMINION DISPARITY IN RISE OF IMPORT PRICES COMPARED WITH EXPORT

(p.A.) WELLINGTON, Sept. 7. The Prime Minister, Mr, S. G. Holland, expressed the Government’s intense disappointment in the result of the dairy price talks with Britain when he spoke to the annual meeting' of the United Kingdom Manufacturers and New Zealand Representatives Association yesterday. .

Mr. Holland quoted figures showing that prices paid by Britain for New Zealand produce did not bear relation to the price New Zealand had to pay for goods imported from Britain. He said that, based on the 1936-38 index figures of 100, the prices of imports from Britain were now at 243, whereas the prices of New Zealand produce sold to Britain were at only 213.

“All along: flic line, because of the lower prices at which we sell to Britain, we are losing ground," he continued. ‘‘That is the reason why you cannot have licenses to import ail the goods you want.”

In considering the dairy produce negotiations it should, however, be recognised that New Zealand did enjoy an advantage over its competitors. New Zealand butter and cheese and meat were assured of markets in Britain to 1955.

The export prices for dairy produce were up 85 per cent, from 1939 to 1949 and meat prices were up 56 per cent., but imports had increased about 150 per cent, in price.

He doubted whether many people who talked in' favour of freer trade really wanted it. Perhaps they were wanting only freer trade with Britain. New Zealand and the Commonwealth nations could not isolate themselves. Isolationists were people who could lead to future trouble. He could not imagine a future with trade confined exclusively to Britain.

At the moment the price of wool was very good, but it was becoming one of the embarrassments of the country’s prosperity. Everybody was concerned over the price of wool.