VALUE OF HIGH EXCHANGE

Taranaki Daily News, 17 February 1933, Page 9

VALUE OF HIGH EXCHANGE

ADVANTAGES OF AUSTRALIA. MEMBER SUPPORTS POLICY. ( (By Wire— Parliamentary Reporter.) Welington, Feb, 15. The wisdom of New Zealand s action in increasing the exchange rate in order to offset the trading advantages at present .enjoyed by Australia was emphasised by Mr. A. E. Jull when speaking on the second reading of the Sales Tax Bill in the House on Wednesday night. He said there was a distinct danger in having a disparity in the exchange rates on London between Australia and New Zealand. "We are producing largely the same class of products as Australia,” he said, “and we are placing these products on the same market. Under the system of assistance given in Australia for a number of years the producer there is getting a larger amount of protection than theproducer in New Zealand* After al exchange is largely a matter of protection for the exporter of primary products, in Australia they have the Paterson Plan, under which an export bounty of about threepence a pound is given on all butter. In addition to this they have had the advantage of the 25 per cent, exchange for a long period. They give sugar growers a high measure of assistance, also wheat growers. “It is suggested here that we should get on side with thd Australian people, because there is this about Australia that every now and again it experiences a bad season: If they are millions of pounds short in London credits to meet their obligations, and it happens that New Zealand has millions of pounds surplus credits in London, with four Australian banks operating here it is just a question of who will get the value of the New Zealand money when there is 'l5 per cent, profit staring someohe in the face.”