AUSTRALIAN GOODS

Otago Daily Times, Issue 26214, 26 July 1946, Page 5

AUSTRALIAN GOODS

MARKET IN DOMINION OPTIMISTIC FORECAST PRICE LEVELS LOWER (Rec. 10 p.m.) MELBOURNE, July 25. Australia’s chances on the New Zealand market in the next few years are considered bright by Mr W. R. Carney, the Australian commercial secretary in New Zealand, who states in a report that in many lines of secondary consumer goods the indications are that the general prices in New Zealand, the United Kingdom, and the United States will be higher than those in Australia. Though price'levels in New Zealand would depend largely on Government action, business circles believed that they would settle at 35 per cent, above pre-war levels. “The New Zealand Government’s policy of secondary industry devevolpment gives Australia trade opportunities—First, as a supplier of capital, raw materials and technical skill, and secondly as an exporter to a friendly neighbour with increased purchasing power,” says the report. “Australian manufacturers considering the establishment of branch factories in New, Zealand have been sometimes disturbed to learn of the New Zealand Industrial Efficiency Act under which a firm cannot operate except by licence, the report continues. “High grade Australian coal for gas making and other purposes will still be required by New Zealand up to the normal imports of 100,000 tons yearly. Imports fell from 111,537 tons in 1939 to 37,454 in 1943, and nil the following year. Australian exports of machinery and manufactured and consumer goods to New Zealand would be much higher but for the backlog in domestic orders. New Zealand has a much better representation in Australia than Australia has in New Zealand, partly because of the importance of the Australian tourjst traffic in New Zealand.” The report says that the prospects of increased exports of wireless apparatus to New Zealand are not good because of local expansion. Australia held a major share of the New Zealand wine market, but the export of low-grade wine was not recommended. An expansion in the fresh fruit and salt markets appeared likely.