THE New Zealand Herald AND DAILY SOUTHERN CROSS FRIDAY, MAY 8, 1936 MINISTER OF MARKETING

New Zealand Herald, Volume LXXIII, Issue 22413, 8 May 1936, Page 10

THE New Zealand Herald AND DAILY SOUTHERN CROSS FRIDAY, MAY 8, 1936 MINISTER OF MARKETING

Mr. Nash is to be given the chance to work out his own ideas for the marketing of New Zealand produce. As Minister of Marketing, he will be charged with great responsibilities, and he gives proof of faith and courage in accepting them. Whether all his ideas are sound may be doubted, but he is preparing to stake his political reputation and career in backing them. Such large issues are at strike, both here and overseas, in giving effect to the bill that it was essential to use the best talent available. The Prime Minister has recognised that by selecting Mr. Nash for the responsible post. So far as the personnel of the Ministry can be judged at this early stage, a better Aoice could not have been made from among its number. At the same time, if Mr. Nash's projected visit to London is likely to be prolonged, the administration of the important portfolios of Finance and Customs will have to be well provided for, to say nothing of the detailed application of the guaranteed prices scheme in New Zealand. The Government's policy involves the making of many far-reaching decisions under all three heads, Nevertheless finance, customs, prices and a great deal else must largely depend on the making of advantageous arrangements in overseas markets. National welfare now and for many a year to come will be conditioned by export trade. It is reassuring to note that Mr. Savage admits as much by choosing his first lieutenant for this marketing mission. There was a disposition on too many Labour platforms to argue that t-oo much had been made of exports and to suggest that New Zealand could insulate herself from the shocks of world economics. The welfare of our customers and of our customers' customers must always affect our own welfare. No country can live to itself alone.

The representation of New Zealand's interests in London by a responsible Minister is particularly timely because in the next few months the British Government will be reviewing that part of its import policy affecting agriculture. The opportunity is presented by the expiry this year of the trade agreements with Denmark, Argentina and other primary producing countries and next year of the Empire agreements made at Ottawa. If Mr. Nash is to influence the trend of British policy in the direction he hopes or, should that prove impossible, at least in a favourable sense, his presence in London is most necessary. The more so, because after July 31 the Government will be the owner of the immense surplus of New Zealand's dairying output, most of which cannot be sold except in the British market. Mr. Nash proposes to try to apply a new policy to the profitable disposal of the export surplus. Under his bill he is empowered to negotiate for reciprocal trade agreements with overseas countries, and especially with Britain, offering the inducement that New Zealand will 'spend in a particular country the proceeds of her sales in that country. She will buy where she sells. That should prove an attractive proposition to the British Government. A substantial sum would be diverted to her manufacturers and exporters under these conditions. New Zealand would also be in a strong bargaining position with such countries as the United States, Canada and Australia, which would be faced with the withdrawal of much trade if they were not prepared to open markets to New Zealand goods. Of course it may prove that the Dominion market does not weigh heavily enough with some or any of these Governments to enable Mr. Nash to conclude reciprocal agreements. It is worth trying, however. To obtain a special agreement with Britain and specially favourable treatment in the British market would be a great prize. Mr. Nash would have first to persuade the British Government to abandon the Ottawa policy of giving equal terms to all the Dominions. He would have to convince it that it was both politic and economically worth while to discriminate between units of the Empire. He also would have to> be prepared to discriminate against certain Dominions. Then, if he were to ask for a favoured standing in the British market, he would need to be able to offer reasonable terms of entry for British goods into the New Zealand market. Mr. Savage has been talking to New Zealand manufacturers about protection under the heads of tariffs and import licences ; Mr. Sullivan is about to launch an ambitious scheme for the rationalisation and development of New Zealand 'secondary industries. No doubt the British Government is aware of these moves and will wantspecific assurances on behalf of British exporters in return for any favours granted to New Zealand. Experience of the Ottawa and foreign trade agreements has taught Britain to make 'sure of her quid pro quo. That will be only one of many obstacles in Mr. Nash's path. Yet his idea of reciprocity, if not applied so rigidly as to deserve the name of "bulk barter," should prove fruitful. New Zealand has every reason to wish him success in his mission to London.