The Wanganui Chronicle. WEDNESDAY, FEBRUARY 26, 1947 NEW ZEALAND’S TRADE POLICY

Wanganui Chronicle, 26 February 1947, Page 4

The Wanganui Chronicle. WEDNESDAY, FEBRUARY 26, 1947 NEW ZEALAND’S TRADE POLICY

THE short view of trade policy has for too long reigned in many countries, with the result that world economy was impaired to such a degree that the Great Depression was actually created. The general appreciation of the world economy that now obtains is decidedly weak in most countries and New Zealand is no exception. Farmers are concerned about farmers’ interests to the exclusion of oil other sections of society. When did the Farmers’ Federation consider the position of industrial workers, professional men, retailers and rentiers? Obviously the Farmers’ Federation, -with its sectional interest, is rot capable of fulfilling the task of representing the whole of the Dominion. The Federation of Labour has proclaimed that its interest is not national, but sectional. It is concerned to secure for workers, whose labour conditions are fixed by industrial awards and agreements, increases of wages rates; but it takes ro interest nor concern in those members of society who are net, nor cannot be included, in award conditions. This sectional vi?w and intention makes it impossible 1o rely upon the Federation of Labour to represent the nation as a whole. Even the Labour Party is determinedly a sectional organisation and a Government that is provided by a sectional party is under severe handicaps when it comes to consider the longterm problems of the nation’s economy. Only a political party that has a wider philosophy can be regarded as a sound instrument for considering trade relationships. Self-interest in economic matters must always be an important factor and it will, under any circumstances, make itself felt; but when it is operating on a sectional organisation it has no adequate checks to hold it back. A national party, representative of all sections of the community, is the best devisable instrument. Whether the National Party in New Zealand is really national in faet, as well as in name, is a point on which disagreement could be expected, but the dominance of the farmer interest is one of its weaknesses when it comes to dealing with trade policy for this Dominion. This is a fact which that party ninrt face up to now before it is required tc accept responsibility for the nation's interests. To-day the problem of New Zealand’s trade policy must be worked out to meet the needs of a changing world. This can Lest be done now by the of the general public undertaking the individual task of informing themselves on the nature of these changes. It is an easy thesis to expound that New Zealand must increase her production so she shall be in a position to import more goods and thereby increase the quantity of goods available to the public for purchase and consumption. That thesis is sound enough, but the trade relationships of New Zealand require t» be worked out in much greater detail.

The dominance of the United Kingdom in respect to our current major exports is revealed by the export figures for the nine months ended September 30, 1946: The United Kingdom received 1,434714 cwt. out of a total of 1,462,654 cwt. of butler exported; 1,294,065 cwt. out of a total export of 1,295,345ewt. of cheese; 5,231,671 cwt. out of a total of 5,260,738 cwt. of frozen meat and 414,960 bales out. of a total of 839,119 bales of wool. The question which must be asked now is: Will these exports continue in the same manner as previously? Will the United Kingdom, with her changed financial position and altered trade policy, be willing to accept these major exports? If not, and some modification is required, what is Ne<v Zealand going to do? She must, of necessity, look for other markets and the United States of America appears to offer the most favourable possibilities. When Lease-Lend was extended to New Zealand the agreement provided that a revision of trade policy would be contemplated after the war. America will possibly receive more of New Zealand’s exports and. assuming that she does do so, she will expect to receive a larger share of New Zealand's import trade. It is at this point difficulties arise. Can this Dominion expand her imports of American products and continue to assure her people of full employment in the secondary industries? The fact might as well be faced now as later on: it is impossible for the secondary industries to be so placed to absorb all surplus labour and for American imports to increase materially. Further, unless exports to America are sufficiently large to ensure'the accumulation of dollar credits the expansion of American imports into this country must absorb sterling balances. The United Kingdom is hardly likely, in the future, to be as accommodating as she is now. It is true that up to the present the United Kingdom has never refused New Zealand dollar credits, but that is no criterion for the future.

The crux of the matter is not what is New Zealand prepared to do. but what must she do if the United Kingdom market contracts for this country’s exports? Further, what expansion of imports from the U.S.A, is to be allowed in the absence of any guarantee of a given expansion of imports from this country into the United States.

The Prime Minister has determined that exchange control and licensing of imports must continue in order to maintain the necessary balance between the two countries. This is no return to a freer state of the market: it is a continuance of rigid trading conditions and the maintenance of the heavy hand of bureaucracy upon trading operations. An expansion in some measure is to be expected but will it be flexible enough to meet New Zealand’s needs?

It is unfortunately true that there is no very keen interest in the problems involved in fashioning of the trade policy of the future. It must be emphasised that it is the vital concern of every man no matter how fortunately placed he may be to-day or how humble is his station and function. It is late in the day for a widespread intelligent interest to be awakened, but it is to be hoped that such interest as can be. generated will be brought to bear upon the problem viewing the matter not from a sectional but from a national angle.