A DUBIOUS BALANCE

Hokitika Guardian, 14 July 1925, Page 4

A DUBIOUS BALANCE

DOMINION TRADE POSITION. DUNEDIN, July 10. The possibly disastrous effects of over-importation as a future of the trade of New Zealand were discussed at a meeting of the Otago provincial council oi the New Zealand fan lie l s Eli ion. Mr F. Waite, the president, said he believed that the Dominion was on the threshold of an era that was fraught with all sorts of possibilities and dangers. They knew that New Zeal, was one of the* most prosperous countries in the world and that il the farmers kept on producing it would always be one of the most favoured countries, hut the country could not be prosperous unless there was a sufficient excess of exports over imports. The returns for the twelve- months ended March 21. 1025, showed that the balance of trade in New Zealand’s favour was just on £5,(JOI).000. The interest Pill, however, was probably £0.000.000, so that, in spite of the tact that they had received high prices during the year, the exports had not been great enough to meet the cost cf imports added to the interest bill. The farmer was a'lwavs told that he must increase bis production, but the position thathad been created was not due so much to a lack of increase in production or exports as to the fact that so many luxury goods were imported. Ihe imports had been dangerously high this vear. Every importing house was endeavouring to cut down the importation of luxuries, but the fact was that there was a demand for them and it had to lie met. The importation of luxuries was responsible for the, prosent position, and might be responsible for landing tliom in an unfavouralrlo position within the next twelve months.

The speaker mentioned that while there were large quantities of tomatoes grown in New Zealand, half cf the tomato sou]) that was procurable m the restaurants was imported. The question was what could be- done by Ibe union to give people a lead in the direction of cutting down unnecessary expenditure on goods which had to be imported. Out of every £ll.O worth ol i'-(io(l> that went overseas from New Zealand, at least £BS worth was bought by the people of Great Britain. These people were the Dominion's best customers, and tin* people, here. in turn, should buy British goods instead of goods manufactured in any other country. There was no doubt a good deal of waste in the country, as wed as in (he towns. There was a large expenditure on petrol, and in that direction a good deal ol expense might be saved. New Zealand should gel- British manufactured goods every time, because il was to Britain that they had to look for the outlet for their ex-p-wlnhle surplus. He considered that it was the duly of everyone to do everything possible to ensure a good excess of exports over imports this year. The excess was only about £5.000.000, and wliat was going to happen next Year? Gould they expect higher prices for wool, lamb, and dairy produce than bad been obtained this year? So far as dairy produce was concerned, bo thought the price next year would bo about tbe same as it was this year, and lie bad grave doubts about Jamb and wool. If the imports kept up to the same level as they bad been at for the last. year, and the exports were the same ill volume, bill less in value, it stood to reason that they would be far worse off next year. Mr John Christie said be thought that even effort should be made to trade with the people who traded with ns. New Zealanders (ertaiuly bad been very lax in regard to this matter in the past. It might be necessary i , pay more For a British motor-car or irtieU. but tbe purchasers got value tor their money. The price of the British car was coming down to within the reach of most people. II they i.uild not. inerea.se the export prices, they should increase, the exports by putting more people on tbe land. Tbe great difficulty so far as motors were concerned was that the British people did not make ears to suit colonial roads. That was bis experience, and also tbe experience ol engineers, who bad studied the question. He thought I I io English manufacturers should send representatives out and find out exactly v.bat was required. Tbe difficulty ■seemed to be that the English cars were too low-powered. He thong’they would all buy British cars if they were suitable for the needs ol New Zealand.