POST-WAR ECONOMY

Otago Daily Times, Issue 24449, 7 November 1940, Page 11

POST-WAR ECONOMY

THE PRIMARY INDUSTRIES SIEFFECT ON PROSPERITY STUDY OF TRENDS URGED (Per United Press Association) NEW PLYMOUTH, Nov. 6. The effect whicli present tendencies and post-war economics will have on New Zealand's prosperity as a primary producing country was considered by the annual conference of the Associated Chambers of Commerce to-day, when it was contended by Mr S. E. Mair (Canterbury) that the problem of the future was one that needed immediate study and planning. After a long discussion, the conference adopted a.Canterbury remit requesting evidence that among the activities of the Government departments, marketing boards, and production councils an adequate and continuous investigation is being or will be effectively conducted into the future of agricultural and pastoral production and the implication of possible increases in such production with the object of establishing and making public (a) a short-term policy during war-time, and (b) a long-term policy for post-war conditions. The Export Position In 1938. the value of all New Zealand exports was £58,000,000, Mr Mair said. Of that total £48,000 000 went to the United Kingdom, £4,000,000 to other parts of the Empire, and £6,000,000 to foreign countries. ihe main exports in order were butter, meat, wool, qheese, and skins and hides. Skins and hides together represented a value of £8,000,000. It will thus be seen,” he said, ‘ that our whole economy and prosperity depend largely on the continued successful sale abroad of four main commodiThe production of New Zealand butter increased by more than 70 _ cent, between 1920 and 1938. Mr Mair said, and to-day it was threatened by improvements in margarine, which was selling in. England at 5d to 9d a pound depending on quality. Between 1986 and 1940 the United Kingdom consumption of margarine increased from 101 b to 201 b per person whereas the consumption of butter fell from J4lb to 121 b per person, with a value of £ 15.000,000. The Future of Wool Meat exports increased by 16 per cent, between 1920 and 1938, Mr Mair said, yet a quota was put on mutton and lamb last year. Wool exported from New Zealand in 1938 was valued at £12.000,000, an increase of 67 per cent, since 1920. It was to-be noted that the production of staple fibre had increased from insignificant figures m 1920 to an amount equal to two Australian wool clips, roughly 6,000,000 bales. The world output of rayon and staple fibre in 1939 was 2,200,000.0001 b, compared with 1,900,000,0001 b estimated as the world production of clean wool in that yeai’. The effect of the war on wool was not pleasing to contemplate, Mr Mair added. When the last war ended the surplus Government stocks totalled 2,500,000 bales, of whicn 768,000 were New Zealand. Unfortunately. New Zealand wool was mostly of the coarse variety, which would not be in such demand when the soldier-s threw off their uniforms.