THREE SAFEGUARDS

Otago Daily Times, Issue 27221, 26 October 1949, Page 6

THREE SAFEGUARDS

RECESSION OF PRICES MR NASH’S ADDRESS PA WELLINGTON, Oct. 25. The guaranteed price, the pool accounts of the main primary industries and the control of currency and credit were cited by the Minister of Finance, Mr Nash, opening nis election campaign to-night, as the principal safeguards against the effects on New Zealand of any economic recession overseas. “We might be tending toward circumstances something like 1929,” he said. “There are, one or two signs, like the minor recession in the United States recently and the present difficulties in the United Kingdom. These could put a little fear into the minds of everybody, but 1 am confident that with the safeguards we have we could reduce or hold effects which might reach us from outside countries —outer effects, not inner.” Later, he said that should there be a tendency to menace the social structure and standard of living as a result of events overseas he could not say that New Zealand would not be touched, but he could say the Government had safeguards.

The housing demand would take a lot of overtaking, Mr Nash said, but the Government would continue with its State rental policy and with advancing money to those who wanted to build for themselves.

Dealing with the effects on New Zealand of economic conditions abroad, Mr Nash said there was £50,000,000 in reserve in the Dairy Industry and the Meat and Wool Industry Pool Accounts. That sum was the first safeguard against any fall in prices. The Government could continue to pay farmers their labour costs and a fair income. There was enough to provide for a long time. The second safeguard was the bulk purchase agreement by which for six years, the United Kingdom would take all surplus meat and dairy produce at an agreed price plus an annual adjustment up or down of not more than 71 per cent. There was another safeguard—complete control of credit and currency.