ECONOMIC OUTLOOK

Otago Daily Times, Issue 22716, 31 October 1935, Page 10

ECONOMIC OUTLOOK

POSITION OF THE DOMINION AN OPTIMISTIC SURVEY ADDRESS BY MR FORBES (Pee United Press . Association) NAPIER, October 30. A review of New Zealand's economic conditions as they are to-day and an expression of hope and confidence for the future were given to the delegates attending the Associated Chambers of Commerce conference at Napier this afternoon by the Prime Minister, Mr G. W. Forbes, who travelled to Hawke's Bay by rail car and left immediately after his address for Shannon. Reviewing what had been done in New Zealand, Mr Forbes said there was a tendency for the people to say that nothing was being done. The trade figures lor the year ended September 30, 1935, showed that the exports totalled £43,359,000 and the imports £35,387,000. The exports were certainly £6,000,000 less than in the previous year, but that was due to the lower prices paid for wool. The imports, on the other hand., had increased, showing that the purchasing power of the people was increasing. In regard to the cost of living the Prime Minister stated that taking 1000 in 1926 as the basis, the present figure was 839. The cost of living was therefore now well below the figure in 1926. The present figure was actually only 5 per cent, above that ruling in 1932 when the exchange rate was raised to its present level. "To-day we are meeting in a more hopeful position than for years past," Mr Forbes said. "We have had all the worry and disappointments, but we are now on firmer ground and are looking to the future with greater confidence." In many respects the depression had been accentuated by pessimism. Money had been held back from development industries because of the apparent uncertainty of the future. It was essential that the people themselves should look forward hopefully and optimistically to the future, and in this connection much responsibility rested upon such business men as comprised the Chambers of Commerce in New Zealand. "I know there were many people who thought we would never get out of the depression, but we are out in the sunshine again," said Mr Forbes. The management of the dairy industry and the important effect of science upon this industry were referred to by the Prime Minister, who stated that the system carried out in New Zealand an the interests of the industry was not excelled in any part of the world. In regard to fruit also, science had had an important bearing, while in the system of chilled beef export now in use a new era for the development of this trade had been opened up for the primary producers of the Dominion. He had personally seen the first shipment of the Port Fairy unloaded at Smithfield, and it was equal to that brought from Argentina, which had the great advantage of a shorter distance of transport. Now all that remained for the people was to provide the quality at this end. If that were done, far better prices than ihose for frozen meat vere assured. "The Government is out to help the meat industry, but it is not the function of the Government to run the industry in New Zealand. That is far better done by private enterprise," said Mr Forbes. Where research and scientific investigation were required, however, the Government was very willing to assist development. The pig industry in New Zealand was referred to. The growth of this industry, said the Prime Minister, had also been brought about as a result of scientific research. In consequence, the pigs which were sent Home were equal to anything that they received on the London market. " I have heard we have not got the breed of pig, but we have obtained the quality," said Mr Forbes, "and that is the mam thing. " In Tegard to wool, I took the opportunity of eoing to Bradford and meeting the members of the British Wool Federation," said Mr Forbes. " I asked then the position in regard to our wool and they told me that for some reason or other New Zealand wool was better than that from any other country. Mr Forbes stressed the fact that members of the federation spoke of uniformity in wool production and stated that they were apt to lose patience when very varied types of wool were produced in the country. Uniformity had been achieved in regard to fruit, meat and butter. The question of uniformity in wool production was one to be decided by the farmers themselves.