IMPORT POLICY AS SEEN BY MR. F. P. WALSH

Chronicle (Levin), 28 June 1946, Page 3

IMPORT POLICY AS SEEN BY MR. F. P. WALSH

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PLACE OF SECONDARY j INDUSTRIES |

Rv Telearavh-

WELLINGTON, June 2i. Whatevcr part seeondary industry was to play in the development of Ne"\\ . Zealand, we would always need large ' importations of eonsumer and capital goods from overseas, said Mr. 1' . 1'. Walsh, representative of.the, F^dera-^yp of Labour on the Keonomic Stabilisation Counnission, in an address to tlie National Dairy Couferenee today. Cont inuation of national progress was dependenl on the adequate tlow oi iinported connnodities aud equipment. MWe must realise that we are, iiidusttiallv speaking, a poor eouilt r\ , said \f r. Walsh. "We have, for exainple, no minerals that are suited for large-seale industrial development, nor have we any uearhv markets to whieh ' we ean export linished goods. Tlierefore, we must be elear as to the part whieh seeondary industries are to play j ti our eeonomy, and 1 ean mako mv views elear by distinguishiug betueen the short-term and the long-term siluation. In tlie short term we appear to have reaehed the position where out seeondary industries are ail'lieted bv a manpower shortage uud some miglit sav that we are getting overimiuslrialised in lines of goods whieh are selling at an uueconomie priee in relation to iinports and whieh have no ' relation to our natural resourees. .But in the long-term view, the question of relative prices is only one faetor, and a real test eannot be tuade entirely on these grounds. Of funda,mental im- ■ portanee is the provision of employmenl for our rising population, and the problem is one of striking a balanee betweeu the matcrial resourees and the labour available." State of Sterling Fimcls 1 Heferriug lo tlie questiou of sterling balanees, Mr. Walsh said that altlioughi Ihese appeared higli, it was questiou- j ablo whether they wero adequate to j meet all our requirements were tlie goods available to purchase overseas. i This poiuted to tlie need for eontinued eontrol over our overseas funds so that the most urgent and natioually im■portant noeds miglit be mct iirst. The interual purehasing power at its present ' liigli level would exhaust our overseas resourees in a short timo were iniport eontrol to be removcd. "lu m v report to the national coutiell of the New Zealand Federation of I^abour earlier this year, I strosscd the fact that we have not uniimited sterling funds available for the purchase of imjmrts," added the speaker. "The ' funds whieh stood to our eredit at the 1 end of the war have already been considerably redueed by debt . repayments, and 1 would draw your attcntion to the fact that, as part of the United StatesEnited Kingdom loan agreement, the United Kingdom is called upon to ap'proacli her sterling area ereditors, ineluding New Zealand, with a view to ' achieving a downward adjustment of sterling balanees held iu London and a virtual immobilisation of a large part Of such balanees. Sueh a proeedure would make our supply position for iinports eveu more severe, and would emphasise the necessity of using our available funds to tlie best advantage. We eannot alford to reduee tlie sterling i funds available- for imports by furthor debt repayments. It stands to the credit of tlie Govemment that it has niet the extornal eost of the war in full, but even now voices are being raised in London suggesting that when future

J clebts fttll due they should be inet by • eon versiou opcralions. 'J'liis is ils'll ia tribute to the fiuanftial stauding of our couutr.y. Tn our present eireum slunces, 1 persoually am in agreehienl with that view, provided the eonversion tenns are to our advantage."