The Waikato Times WEDNESDAY, NOVEMBER 24, 1943. NEW ZEALAND’S MARKET PROSPECT

Waikato Times, Volume 193, Issue 22203, 24 November 1943, Page 2

The Waikato Times WEDNESDAY, NOVEMBER 24, 1943. NEW ZEALAND’S MARKET PROSPECT

Mr Samuel Storey, M.P., Parliamentary Secretary to the British Ministry of Health and a member of the group of newspaper proprietors visiting New Zealand, is cheerfully optimistic regarding the prospects for the Dominion’s markets overseas after the war. So much food would be needed by starving Europe after the war,’ he said, that New Zealand would have tremendous markets. It is to be hoped Mr Storey’s judgment is sound, but it is certain that enduring markets will not be available to New Zealand as a matter of course. Undoubtedly the demand will exceed the supply for some time. One result of this will be that every country exporting foodstuffs will increase its production to take advantage of the buoyant market until the supply overtakes the demand; that is unless previously undeveloped consumptive capacity is brought within reach of supplies. Markets for New Zealand and for most other exporting countries in the ultimate will depend upon the wisdom with which the nations concerned in the post-war settlement approach the financial and economic reconstruction. There is no question that the world’s people could consume a vastly greater quantity of foodstuffs than have ever been produced. But there is nothing more certain than that there will again be periodic gluts and shortages unless the “bottlenecks” are removed and the world’s production is allowed to flow freely to the points where it is needed. In the past, exporting countries have been restricted in the markets to the few countries which could afford to buy or which were not surrounded

by impenetrable tariff walls. The demand for goods was reduced to a mere fraction of its possible optimum. While New Zealand can scarcely fail to find a market for all it can produce until the vacuum in Europe is filled, it is the longterm prospect that requires attention. New Zealand alone cannot secure a market for all time, but she can assist by taking an intelligent part in framing the new order. At one stage it seemed almost inevitable that after the war New Zealand would require expanded overseas markets and an increased margin of exports over imports to service the overseas debt, but by an exceptional effort the debt incurred under the Memorandum of Agreement is being repaid and finance for the war is largely being raised within the Dominion. But even if the overseas debt is not further increased it will be necessary to maintain a balance of exports over imports of something like £12,000,000 to meet the overseas interest bill.