MARKET GOODWILL

Manawatu Standard, Volume LV, Issue 80, 2 March 1935, Page 2

MARKET GOODWILL

IMPORTANCE TO DOMINION. EFFECT OF LEGISLATION. Criticism of the general trend of legislation in New Zealand as ■ being prejudicial to the maintenance of market goodwill in Great Britain was voiced by Mr G. H. Scott, of Wellington, in an address to the Palmerston North Citizens’ Lunch Club yesterday. Mr H. E. Kissluig presided and Mr It. liooton (Auckland) was welcomed as a visitor. Attention should be drawn, said Mr Scott, to what constituted a rather serious state of affairs for New Zealand on the Home market. Since 1902, he added, ho had periodically made visits to the Old Country, and on the last occasion he had made some investigations on his own account into the market for New Zealand butter, with due consideration for the effect upon the situation of the general trend of legislation in the Dominion. Discussing the position with an eminent English civil engineer and chartered accountant, said Mr Scott, he had obtained a free and frank expression ot opinion, also similar viewpoints from the director of the overseas department of the Federation of British industries. There was a wide difference between goodwill for hew Zea'and as it existed m London and as it was in the Midlands. That in London was hound up with shipping, loan obligations, etc., and in such an atmosphere goodwill was not difficult to maintain. In the Midlands the goodwill of New Zealand was viewed from the angle of the openings created for the industrial market. There lay the main body of consumers of New Zealand produce, and yet they had been more seriously injured than any other classes by New Zealand legislation. They shewed soreness at having been caught by. the raising of the exchange rate. Some people there had closed New Zealand branches of long standing, and others had T modified their business. New Zealand, Mr Scott said he had found, had been classified with Australia for sol I fish ness and insularity of outlook bv the people in the Midlands. Ha wished New Zealand Ministers and statesmen could be transported to the Midlands to learn to legislate less for a class and move for a community. They had cut, by their actions in the last few years, and their dictatorial attitude, an artery of goodwill, and they would have to take speeciy me„tsuies to stop the bleeding. Less attention to legislation in New Zealand and more to marketing in England was required. Britain, for her very existence, quite apart from the question of prosperity, had to trade with her best customers. Instead ot being very valuable to England with our trade, as was suggested by the politicians, said Mr Scott, New Zealand was within three places of the bottom of a list of twenty-one countries. Switzerland, China, Spain, Italy, the Netherlands and the Argentine were infinitely better customers of Britain than New Zealand. Legislation in this country had strangled sales with an artificial exchange rate and sales tax, and the industrialists in England knew all about it. During his last visit to England the speaker had been dubbed “Mr Five Bob," because New Zealand bought from England 5s woitli of goods for every 25s worth which she sold to the Mother Country. Equally striking statements had been made. Englisn manufacturers considered they were entitled to criticise when their business with New Zealand had definitely been injured by New Zealand’s high rate of exchange, created by legislation, and not unbalanced trade. Products had been made, with an utter disregard for the position, so costly as to heavily restrict purchases, and there had been some very detrimental reactions. England very definitely realised the effect of New Zealand’s legislation, the speaker proceeded. It was a startling fact that the only two of Britain’s customers lower on her list than New Zealand were the United States and Soviet Russia. Even Denmark ranked at 33.2 while New Zealand ranked at 25.7, and Denmark sold less to England than did New Zealand. Britain intended to trade on a reciprocal basis, and this country should bo ready to fall in with that arrangement. Everybody in England contributed 28s per head for naval expenditure. and New Zealand enjoyed the same protection for 8s per head. Many obligations were forgotten, and though New Zealand politicians ignored them, they were remembered in England. Our goodwill there was one of oiligreatest assets, and everything possible should be done to maintain and extend it. The speaker was accorded a hearty vote of thanks on the motion of the chairman.