New Zealand's economic problems continue to be those associated
with rapid expansion and a high level of demand both for capital and
consumer goods, but my Ministers are gratified that their policies have
contributed substantially to the greater degree of stability now evident.
They see, however, no cause for complacency in the matter of our
export trade and arrangements were made for a representative mission
of producer organisations, manufacturers, and traders, under the leadership
of my Minister of Agriculture, to visit London for discussions on
our trade relations with the United Kingdom. These discussions
have resulted in valuable additions to the Ottawa Agreement and
have led to a better understanding of the present-day problems
associated with the expanding trade of our two countries. My
Advisers are also maintaining their close watch on developments in
the pattern of world trade generally, including proposals for a
European Free Trade Area. They are conscious of the need to expand
and diversify New Zealand's overseas markets not only for our
primary produce, but also for our processing and manufacturing
industries.

The steadying influence in the economy of the policies initiated by my
Ministers has made possible the removal from business activity of
further direct controls.

The availability of adequate resources for development purposes is
regarded by my Ministers as important in our expanding economy. They
attach special importance to successful loan-conversion operations and
to the borrowing of funds to support the very substantial part of their
works programme that is not financed from revenue. There has been
a good response to their endeavours to encourage higher levels of savings.

Estimates of expenditure will be placed before you for your consideration in due course.

My Government's land-development programme is being maintained
throughout New Zealand and provision is being made for increased
areas to be developed in both Southland and Westland. Endeavours to
speed up the rate of farm settlement of our eligible ex-servicemen have
been maintained so as to permit the reinstatement of a policy of civilian
settlement.

You will be asked to consider a Bill dealing with the action my
Government is taking to secure future supplies of phosphate rock, so
important to our agricultural industry, and a Bill amending the Meat
Act so as to ensure a consistently high standard for all exported meat.

New Zealand and Australia will be joint hosts later this year to the
Seventh British Commonwealth Forestry Conference, a feature of which
will be the presentation of a comprehensive survey of our native
forest resources. My Government is gratified at the continued progress
of the pulp and paper industry and the substantial increase in the
export of its products.

Our growing prosperity and improved standards of living are reflected
in the rapid expansion of road transport and, although during the last
eight years the country's road transport fleet has increased by more than
75 per cent, my Ministers are pleased to be able to report that their
vigorous programme of road safety measures has achieved a steady
decline in the death rate from traffic accidents.

My Government has recognised the increasingly important role of
aviation in our transport system by promoting the development of the
necessary facilities, including the installation of radar landing systems to
ensure the continued safety and efficiency of our airways.

The development of electric power retains an important place in my
Government's works programme and good progress is being made with
the coal-fired steam station near Mercer and with the harnessing of
geothermal steam at Wairakei; both of these plants should be in operation
next year. In addition, three further hydro-electric stations are
under construction on the Waikato River, while, in the South Island
the output of the Roxburgh power station is to be increased to twice
present level. My Ministers are carefully examining the feasibility