SOMETHING WRONG

Wanganui Chronicle, Volume 83, Issue 27, 3 February 1939, Page 9

SOMETHING WRONG

NEW ZEALAND OVERSEAS TRADE REVEALING FIGURES AT LYTTELTON [ Per Press Association.] CHRISTCHURCH, Feb. 2. “There is no shutting one’s eyes to the fact that there is something wrong so far as our oversea trade and markets are concerned. As our financial prosperity depends upon the quantity and value of our primary exports, though I am no economist, one is forced to the conclusion that a reduction of our imports by reducing our purchases from Great Britain will not necessarily restore the margin of value between our exports and imports, nor compel our British customers to increase or even maintain their purchase of our primary products, while we reduce our imports from them.” These remarks were made by Mr. R. T. McMillan, chairman of the Lyttelton Harbour Board, in his annual report.

“Is not the real remedy to reduce the production and f.o.b. costs of our products instead of allowing those costs steadily to increase?” he asked. Referring in the report to the position of the board as at the end of its financial year in September, 1938, Mr. McMillan said that though the accounts and report submitted by the secretary and treasurer showed a sound position and that there had been some further recovery in both trade and finance, the results were not so good as in the preceding year, which was almost a record, and they were somewhat disturbing. “Though it is admitted that the fiscal figures of one port or province do not necessarily reflect Dominion trade, experience has shown that they are a reasonably reliable barometer and to that extent our trade and tonnage figures for the port for the year conform to income and expenditure and, to my mind, are very unsatisfactory, said Mr. McMillan. Higher Adverse Balance “The value of imports for 1936-37 was £7.273,186, and for 1937-38 £7,370,394 an increase of £47,208. Exports value for 1936-37 was £6,346,335, and for 1937-38 £4,784,150, a decrease for the year of £1,562,185. Adverse balances between exports and were: Year ended September 30, 1937, £926,851; 1937-38, £2,536,244.” The unfavourable import balance for the port was also touched on by the secretary, Mr. C. H. Clihborn, in his report, in which he reviewed in detail the financial standing of the board trade figures for the port and shipping movements during the year. Concerning the import balance, said Mr. Clibborn, report from other major harbour boards were not yet available, but recently-published statistics showed that Lyttelton would not be singular in that respect and was sharing the circumstances which had no doubt caused the Government’s recent decision to restrict imports bv licence to conserve New Zealand funds in London—a decision which, unfortunately for the port’s trade was almost simultaneous with 1-enuests to their Government by

British primary producers to redu the importation of frozen meat fro New Zealand and Australia.