NEW ZEALAND TRADE.

Otago Daily Times, Issue 19528, 10 July 1925, Page 6

NEW ZEALAND TRADE.

WARNING AGAINST OVERINDUCTION. PLEA FOR BRITISH MANUFACTURERS. At a meeting of the Otago Provincial Oour-cil of the Now Zealand Farmers' Union yesterday the president (Mr Waate) maoe Borne interesting remarks on the subject of Now Zealand trade. Hb stated that he did not want to be an alarmist, but he would like to draw attention to sonic at the outstanding features in regard to the outlook for New Zealand trade. Ho believed that the dominion was on the threshold of an era that was fraught with all sorts of possibilities .and dangers. Are Chamber of Commerce load been very active in looking after the people who imported goods and also after a section of those who were exporters. The Chamber of Commerce had sent out a circular which merited careful reading. They knew that Now Zealand was one of the tnost prosperous countries in the world, and that if the farmers kept on producing it would always he one of die most favoured countries, but the country could not be prosperous unless there was a sufficient excess of exports over imports- -Returns for the 12 months ended March 31, 1325, showed that the balance of trade in New Zealand s favour was just on £5,000,000. The interest however, was probably £6,000,000, so that in spite of the fact that they had received high prices during the year the exports had not been great enough to meet the cost of the imports added to the interest bill. The farmer was always told that ho must increase production, hut the position that had been created was not duo so much to a lack of increase in production or exports aa to the fact that so many luxury goods were imported. The imports had been dangerously high this year. .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 bo met. The importation of luxuries was responsible for the present position, and might be responsible for landing thorn hi an unfavourable position within the next 12 months. The speaker mentioned that while there were large quantities of tomatoes grown in Now Zealand, half of the tomato soup that was procurable in tile restaurants was imported. The question was what could be done by the union to give the people a lead m the direction of cutting dovvn unnecessary expenditure on goods which had to be imported. Out of every £IOO worth of goods 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 the people here, in turn, should buy British goods instead of goods monufsetcu-ed in any other country. The United f-luites had put a tax of eight cents per lb on butter, and it was trying to raise it to 12 cents, while it also had a tax on wool. In 1923, Britain took from New Zealand over £9,000,0X) worth of wool, while the United Stales took only £872,000 worth. Tn the same year Britain paid us £9,587,000 for butter and £6,309,000 for cheese, whereas the United States took only £271,000 worth of butter and no cheese. Britain paid £8,995,000 for Now Zealand meat in 1923, while the total value exported to the United States was only £l4. The total value of Now Zealand’s exports to America was £5,531,000, while the people of this dominion purchased from that country goods valued at £6,636,000, including £1,266,000 for motor cars and motor parts and £1,719,000 for mineral oils. There was no doubt a good deal of waste in the country as well as in the... towns. There was a' large expenditure on petrol, and in that direction a good deal of expense might be saved.

Mr J. Preston: The Sholi Company can supply all the petrol wanted in this country. Mr Waite said that New Zealand should get British-raanulaeturod goods every time that such a course was possible, because it was to Britain that they had to look for an outlet for our exportable surplus. Ho considered- that it was the duty 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 what was going to happen next year? Could they expect higher prices for wool, lamb, or dairy produce than had been obtained this year? So far as dairy produce was concerned ho thought the price next year would bo about the same as it was this year, and he had grave doubts about lamb and wool. If the imports kept up to the same level as they had . boon for the last year and the exports wore the same in volume but less in value, it stood to reason that they would be. far worse off next year. In 1920 and 1921 the excess of imports was so great that there was a serious slump. He thought that if they wore going to do the work which they should be doing they should use whatever influence they had to ensure that the dominion would have a fair run of prosperity. In 12 months they might bo faced with conditions that were not so favourable as those prevailing today.

Mr John Christie said he thought that every effort should ho made to trade with tho people who traded with them. Now Zealanders had certainly been very lax in regard to this matter in the past. It might ho necessary to pay more for a British motor car or truck, bnt the purchasers got value for their money. The price of British cars was coming down to within the reach of most people. They had to save themselves from their friends, and that was becoming very apparent lately. If they could not increase tho export prices they should increase the exports by putting more people on tho land. By doing that they would increase the exports of butter. lamb, wool, and everything else. They would have to institute a land policy that would bring more land into occupation, and they should have people who knew their job when they took up land, Mr Waite said he thought they should work more in harmony with tho Chamber of Commerce.

Mr Christie said there was an enormous amount of money going into power boards, etc., which should be used for tho development of tho land.

Mr J. Ritchie said tho groat difficulty, so far as motors were concerned, was that the British people did not make cars to suit their roads. That was his experience and also the experience of engineers who had studied the onostion. He thought the English manufacturers should send representatives out here and find out exactly what was required. The difficulty seemed to bo that the English cars were too low powered. He thought they would all buy British cars if they were suitable for tho needs of Now ZealandAfter a little further discussion the subject was allowed to drop.