EXCHANGE OBSTACLE

Grey River Argus, 17 March 1932, Page 5

EXCHANGE OBSTACLE

To West Coast Exports MR. O 'BRIEN QUESTIONS MR. FORBES (From Our Parliamentary Reporter.) WELLINGTON, March 16. In the House to-day Air J. O’Brien (Westland) asked the Prime Alinister whether he would take up the .matter ol the exx«naiige. rates as between Now /Zealand and Australia with a view io having the exchange rate between the two countries brought as close as possible to par. Mr O’Brien said that the rate of exchange between New Zealand ami Australia was seriously affecting both tho coal and the timber industries. The importations of Australian coal bad been the principal cause of most of the coal miners being idle for the past two months, and through the ex change restrictions also, thousands of timber workers were row unemployed. In reply the Prime A'linister stated that the exchange rates between Aus tralia and New Zealand were determined by the respective rates of exchange of Australia on London and New Zealand on London. If, as was suggested, the lates between Australia and New Zealand were brought down If about par, Australians would inevitably obtain large amounts of exchange on London through New Zealand to the detriment of the Dominion’s resources in London. Previous efforts of the banks to maintain a low rate for trading transactions had demonstrated the futility of attempting to do as was suggested. Mr Forbes added that an arrangement had previously been entered into whereby an advantage would be given to the Now Zealand exporter of limber, but this had broken down, for some reason which he could not explain. Air O’Brien: I am assured that, i‘ you bring pressure io bear, it will be brought close to par. There is only cue bank holding out. Air Forbes: 1. shall go into the marter with the banks.