22 JUNE

THE NEW ZEALAND GAZETTE

There has been a marked strengthening of New Zealand's external
reserves. For the first occasion for almost a decade overseas exchange
transactions have resulted in a substantial surplus on current account.
This was due mainly to the greatly improved returns for dairy produce
exported during the past season and the recovery in world demand for
wool. The marked improvement in New Zealand's wheat production
made a significant contribution to the balance of payments.

My Government has pursued its policy of progressively easing
restrictions on imports to the extent justified by balance-of-payments
considerations. Nearly all currency-area discrimination has been
removed from the licensing schedule. The rapid fall in dairy-produce
prices earlier this year nevertheless emphasises the vital need for a
country so dependent on external trade to maintain its exchange reserves
at an adequate level. The volume of imports this year will be appreciably
above the level of the previous year; the increasing supply of goods will
make a valuable contribution towards meeting the higher level of
demand resulting from widespread increases in income and from
reductions in taxation which have recently come into effect.

A major revision of the Customs tariff will be introduced in 1961.
This will give a measure of protection to New Zealand industry in
accordance with my Government's programme of industrial expansion.
The tariffs on certain items will be amended this year in anticipation of
the 1961 revision.

The outcome of the public finances for the past financial year has
already been announced and estimates of expenditure for the coming
year, together with related financial proposals, will be submitted for
your consideration.

My Government has pressed forward its policy of land development
and settlement. The area under development has been substantially
increased in the last two years. Particular attention is being paid to
Southland and to the West Coast, where my Ministers recognise the
need to hasten the change from a somewhat static economic position.

My Ministers consider that local training is the only satisfactory
means of meeting the growing demand for the services of veterinary
surgeons and have decided to establish a veterinary school in New
Zealand.

A determined country-wide attack on hydatids disease has been
undertaken. My Government is convinced that this campaign should
be prosecuted until this unnecessary drain on human health and the
national finances is eliminated.

Measures have been taken for the control of agricultural chemicals
to protect the community and the primary producers. You will be
asked to consider legislation to consolidate and revise the Fertilisers
Act and the law relating to the protection of animals. You will also
be asked to consider amendments to the Meat Act 1939 based on the
recommendations made by the Commission of Inquiry into the Meat
Industry.

My Minister of Forests represented New Zealand at the meeting
of the Asia-Pacific Forestry Commission of the Food and Agriculture
Organisation held in New Delhi last February. My Government is
conscious of the need of Asian countries for assured timber supplies
and has offered aid in forest research and training. It has given close
attention to the need to ensure that New Zealand's forest resources
are adequate for its timber, pulp and paper needs, and to supply
overseas markets.

My Government has continued its positive policy of advancing the
well-being of the Maori people and is carrying out land-development
and housing programmes as fast as possible. In addition to general
welfare and educational activities, increasing emphasis is being placed
on the training of Maori farmers and on encouraging a greater number
of Maori youths to undertake trade training. My Ministers deeply
appreciate the valuable assistance rendered by voluntary Maori
organisations.