EVERYONE WILL BENEFIT, SAYS MR. NASH

Chronicle (Levin), 20 August 1948, Page 5

EVERYONE WILL BENEFIT, SAYS MR. NASH

WELLINGTON, Aug. 20. "People in every walk of life will benefit from the alteration of the exehange rate, which will re- j sult in a considerable^ reaction to the cost of living," said the Minister of Finance, Mr. Nash, today. "It simply means .the removal of the exehange loading on all imported goods; which will mean that imported copsumer goo'ds • and goods used by farmers will all be greatly reduced4n;price. -v "4 . ,wld,d .^hngEu4' ^New- Zeainnd mahufa'ctftres Igtborpe cheaper because of the lowe^ cost of imported raw mate.rials . aird capital equipipent- ' 'Price "re'ductions will be evident in such imported items as food, tobacco, textiles, clothing, fqotw.ear, building materials,.' motor cars, petiiol, t-yres, tractors, manures and many other goods. As imports with the exehange rate restored' to parity arrive in the Dominion, the lower prices will work through the whole of New Zealand's economy in the town and country alike, and there will not be a home which will not share the benefit. "The - Government, through the Priee Tribunal, will provide for the hreductjon in costs to be made effective in the lower prices to the consumer. "With the guaranteed price sy£tem operating, the alteration m, the exehange rate will ensure tblat the payout to the fartne.r wiil cover his costs with a. reasonable return. for 'his capital and labaur. He will be placed 'in"' a stronger and more secure position by" the sure fpundation of the lpwered costs which 'he will enjoy. ('There ngver has been a time more suitable than the present to re-establish parity with sterling. In 1933 the drastje aetion of ffievaluing the New- Zealand jSoiind was rhade' by .the; Coalition Gov-' ernment, primarily in its view to help farmers in) the desperate cirCiimstances of the d'ejJressioffi-The farmer today nod&iger h'eeds the 'support' • of a -depreciated exehange rate. Circumstances today demande'd, in the interests of the whole community, that the exehange parity be restored to reduce prices."