NEW ZEALAND TRADE

Evening Post, Issue 51, 2 March 1931, Page 31

NEW ZEALAND TRADE

AUSTRALIA'S CHANCE

(From "The Post's" Representative.) SYDNED, 29th February. Fear that New Zealaud might step in and take retaliatory ■ measures in the way of an anti-dumping duty scorns to be preventing many Australian manufacturers from taking, advantage of the present high exchange rates to form and develop markets for their produce in ■ the Dominion. The cables -hare- already referred to this possibility, and it seems clear that Australians' are not in the least anxious to antagonise New Zealand, and so lose whatever market may exist there. They are content to see a natiiral development in trade that must follow the- exceptional conditions now ruling and generally are opposed to anything in the nature of a trade drive. Mr. M. Nathan, a Melbourne financial broker, does not share this view, and he has expressed a little impatience at the "apathy and.lack of enterprise shown by our manufacturers." He has pointed out that exchange between Now Zealand and London is £7 10s per cent, against New Zealand. Between Australia and New Zealaud, however, it is £18 per cent, in favour of the Dominion. It was not logical that New Zealand should go to England paying adverse exchange on her goods when she could got them in Australia at favourable exchange and, in addition, at less than half the cost of freight. Australia could tako the place of America and England in men's hats, clothing, boots and shoos, stockings, and many other manufactures if manufacturers would only take steps to exploit the market. The high rate of exchange from that point of view was really a blessing in disguise. Mr. Nathan said that it any of Australia's big manufacturers would send tradesmen to New Zealand armed with a full range of samples they would come back with orders worth thousands of pounds. New Zcalandcrs would not be able f:o miss the wonderful opportunity that had opened up. to them to secure goods on favourable terms. An added advantage Australia had over other countries was that- cabled orders could be complied,with within a week and the goods would always be fresh. Australian manufacturers would have to be satisfied with what was known as expert profit. New Zealand came to Australia for boots during the war, but reverted to the English market after tho war because, in spite of the lower freights, Australian prices compelled it to do so.Explaining "export profit," Mr. Nathan gave as an instance a factory working twenty-four hours a day which could supply its homo market in twentytwo hours. Goods made in those other two hours should, be exported at the cost of production, plus the smallest of margins. The profit lay in the fact that they kept tho wheels of their factory moving, their hands working full time. II: tho exchange position wore- re-j versed one cannot imagine Australians receiving New Zealand goods with open arms- ,