traders, and indeed of all sections of the community. They are giving
urgent consideration to the steps which can be taken to implement
the recommendations adopted by the widely representative Export
Development Conference. In support of this drive to increase the sale,
in both traditional and new markets, of the products of the primary
and secondary industries my Ministers will also sponsor more trade
missions, surveys, and displays in trade fairs, and will develop the
Trade Commissioner Service further. In these efforts they attach
special significance to the current negotiations for the expansion of
trade with Australia which were agreed upon at the meeting in
Wellington earlier this year of the Australia-New Zealand Consultative Committee on Trade, and which should secure wider and
long-term opportunities for trade in forest products and for other
exports of mutual interest.

In order to ensure that the tourist industry will have the modern
accommodation it needs to make its full contribution to the earning
of overseas exchange, my Government has introduced a system of
loans and grants to the extent of £4 million which is leading to the
building of new hotels and motels at key points. It has also authorised
the Tourist Hotel Corporation to construct hotels at Waitangi, Franz
Josef Glacier, and Lake Wanaka. You will be asked to consider a Bill
to define the responsibilities of the Tourist and Publicity Department,
and to acknowledge the advisory functions of the New Zealand Travel
and Holidays Association.

My Ministers recognise, however, that the farm remains the foundation of the New Zealand economy and the principal source of overseas
income. They are confident that, although problems certainly lie ahead,
the diligent pursuit of market opportunities and the forceful presentation of New Zealand's case in forthcoming international negotiations
can preserve and secure markets for an expanding volume of primary
products at remunerative prices. This confidence is reinforced, moreover, by the international responsibility resting on efficient producers
of foodstuffs to prepare to meet the dramatic and impending increase
in human needs. My Government will accordingly press forward its
policy of developing land for settlement and will otherwise assist
farmers to secure the maximum efficiency in production. Agricultural
research, experimental work, and extension services are being further
developed; and increased attention will be given to problems posed
by the use of chemical pesticides.

A Bill to consolidate the Meat Act 1939 and its amendments, as
well as a measure to amend the Hydatids Act, will be submitted for
your consideration. To provide the basis for the effective planning and
coordination of scientific research you will also be asked to enact the
National Research Council Bill which was first introduced at the
Second Session.

Within New Zealand the restraints imposed in 1961 to deal with
the pressure of excess financial demand were relaxed last year as the
situation was brought under control. Bank advances have been reduced,
imports have been restored to a more normal level, and there has been
a marked recovery in savings. The nation-wide employment position
continues to be buoyant but a better state of balance has been achieved.
These factors, combined with the improvement in the level of overseas
reserves, have laid a firm basis for an increase in production in the
coming year.

Estimates of expenditure, with related financial proposals, will be
submitted to you at an early date. You will be asked to consider
amendments to the Public Revenues Act to implement recommendations
made by the Committee on the Simplification of the Public Accounts.

It is gratifying that the restoration of the health of the economy
has been matched by the growing confidence of industry and commerce.
The Tariff and Development Board is actively engaged in the examination of and reporting on proposals for industrial development and the
encouragement of local manufacturing. My Government will continue
its active encouragement of sound industrial development and will in