Economics

New Zealand is producing luxury goods for declining markets on a colonial basis.

This was the theme of Dr. Sutch's analysis of the New Zealand economy before a packed Memorial Theatre on March 20. Labour Club sponsored his talk.

High tariffs in European countries meant that the price of New Zealand butter remained low only until it reached a European customs barrier. Dr. Sutch told his audience.

If Britain entered the Common Market this would pose for the New Zealand economy not a question mark but an exclamation mark.

British entry should force New Zealand to place greater emphasis on manufacturing for export. Such a step would end New Zealand's historic dependence on grassland products—typical "colonial" products. Dr. Sutch labelled them.

But he was beginning to doubt that a definite breakthrough would ever be made.

Asked whether or not he believed in socialist planning of the economy. Dr. Sutch said the choice before New Zealand was not one of capitalism or socialism — it was a matter of what values we would like to see built into the New Zealand economy.

What we had to avoid was what Dr. J. K. Galbraith had called "private affluence and public squalor."