MR NASH IN GLASGOW

Otago Daily Times, Issue 23109, 8 February 1937, Page 16

MR NASH IN GLASGOW

GOVERNMENT’S POLICY

EXPLAINED TO BUSINESS MEN TRADE WITH SCOTLAND (From Our Own Correspondent) <By Air Mail) LONDON, Jan. 16. The promise that if New Zealand were given an expanding market for its produce in the United Kingdom the proceeds of Ihe sale of those products would be expended in the United Kingdom was given by Mr Walter Nash. Minister of Finance, in the course of addresses in Glasgow. . Speaking of the relationship between Glasgow and New Zealand, he emphasised the considerable number of shipbuilding contracts which came from New Zealand companies to the Clyde, mentioning that two companies alone had had 20 vessels built since 1929. It was pointed out by Mr Nash, who made a two days’ personal investigation into the marketing of New Zealand products there, that during the past 10 years the trade between New Zealand' and the Clyde had been doubled. , _ , Mr Nash was the guest of the Lord Provost (Mr John Stewart) at luncheon in the City Chambers. He paid a visit to the Royal Exchange, made a tour of inspection of the corporation’s fruit and cheese markets, and held conferences with traders at the offices of the Clyde Navigation Trust. At the Royal Exchange he was introduced to the members by Sir D. M'Cowan, Bt., and at the Chamber of Commerce he was received by the president (Colonel Norman Kennedy) and the. directors. He was also the guest of the Scottish Milk Marketing Board. RECORD CREATED

Discussing the improvements of relations between Scotland and the Dominion, Mr Nash said that there was an apparent increase each succeeding year in the trade between them. Last year a record was created. There was something more than that, however. In the last 10 years a large number of vessels had been built on the Clyde for the New Zealand trade. Two companies alone had had 20 vessels built since 1929. He questioned if they could find any other area of the world equivalent to the size of New Zealand which had done more in that respect. If they considered that position they would find that Glasgow was more closely and primarily related to New Zealand than any other part of the world could be. More goods ought to go direct to Glasgow. There was much to be said for that. During the past 10 years that trade had doubled, and last year 35 ships from New Zealand put into the Clyde. That had broken all records. The trade in general between Glasgow and New Zealand had improved, and they were hoping that that improvement would continue to an even greater extent. IMMIGRATION

The opportunities awaiting competent craftsmen in the building trades in New Zealand were referred to by Mr Nash at a press interview at Glasgow. Good carpenters, plumbers, and electricians, if they cared to take the risk of paying their own fares to New Zealand, would find many good jobs. He emphasised, however, that there was no general shortage of labour, and he could not advise anyone to go there who was not a competent craftsman. In addition to the Government’s housing programme, building activities were greater than for many years, and craftsmen were required. To ordinary people who had no craft inside the building industry he would say: “Don’t go.” Mr Nash paid tribute to the efficiency of the Glasgow Corporation meat market, and said he had been astounded at the splendid organisation. The facilities for the handling of the meat were better than he had seen anywhere, either in this country or in New Zealand. He also commented on the enterprise of the Corporation regarding housing, and said he had made close inquiries into the housing position because the New Zealand Government was working out an extended programme. The evidence he had had in Glasgow was that the layout, the construction, the specification, and the plans were as good as anything he had previously seen. RECIPROCITY AND SCOTLAND The Glasgow Herald remarks: “ Since it assumed office 13 months ago, the New Zealand Labour Government has carried through economic experiments which challenge comparison with Mr Roosevelt’s New Deal. It did not waste time on class war, with which Mr Nash and his Prime Minister, Mr Savage, have little sympathy, . . . “As yet, it is too soon to predict how this experiment in planned economy, which is designed to protect the farmer from the fluctuations of the market and give him and his employees an assured income, is likely to succeed in practice. There are difficulties in the way. One is the efforts being made in Britain to restore prosperity in her own agricultural industry. Another is the reluctance of this country to enter into bilateral agreements with individual dominions. A third is the promise of the New Zealand Government to set up secondary industries as a means of absorbing surplus labour at home. But there is no reason to believe that Mr Nash is not alive to these considerations, and as little to believe that Scotland does not offer a fair field for the reciprocity he has outlined.”

While at the Royal Exchange, Mr Nash signed the distinguished visitors’ book, which has been kept for the last 100 years.

LONDON CHAMBER OF COMMERCE On his return to London, Mr Nash was the guest of New Zealand banks and stock firms whose head offices are in London. On the following day he addressed the London Chamber of Commerce and explained the objectives of the New Zealand Government. He was introduced by the president (Sir Stephen Demetriadi), and there were present Sir Edward Crowe, Comptroller-general of the Department of Overseas Trade, and Mr W. J. Jordan. High Commissioner. The Minister was asked, after his address, whether he would indicate the views or feeling of the New Zealand Government with regard to the “menace of Japanese competition,” and whether, in view of the exchange rates of Australia and New Zealand being on the same parity and the short distance between the two countries, Australia would not have a distinct advantage over Great Britain in trading with New Zealand.

Mr Nash replied that even were New Zealand to find it practicable to alter its exchange rate, the disparity would not be removed, for Australia would still have a 25 per cent, advantage over Great Britain. There were two ways in which the difficulty might be overcome: (1) by New Zealand-Australian negotiations for a simultaneous reduction of the exchange rate, and (2) by putting on a discriminatory tariff against Australia. The Government was reluctant to do the latter. If there were a chance of negotiating for. a simultaneous reduction m the rate, New Zealand could be relied upon to take every possible opportunity for discussion.

As for Japanese competition, if the policy he was suggesting to the United Kingdom Government were adopted, the Dominion would be using practically all her available credits in buying British goods. The proceeds of (he sale of New Zealand goods in Britain would not be available for buying Japanese goods. The adoption of the policy by the United Kingdom would also mean that the Dominion would do a lesser trade with Australia.