IMPORT CONTROL

Ashburton Guardian, Volume 60, Issue 32, 17 November 1939, Page 3

IMPORT CONTROL

BUSINESS MEN URGE REMOVAL. GRADUAL MODIFICATION (Per Press Association). WELLINGTON, November 16. Proposals for the removal of the import control scheme were made at the conference of Associated Chambers of Commerce to-day. Figures were quoted to show that as a national expedient, the control plan had failed. The Auckland Chamber submitted a remit, that, as import licensing is irksome, complicated and costly, and has proved ineffectual and unnecessary for its intended purpose, the limiting factor being the volume of New Zealand credit overseas, it should abandoned. During the period which must necessarily intervene before ' abandonment can be achieved it is suggested that the existing system should be modified in the following way; each imported to have allocated to him every six months the total sterling to Tvhich he is entitled ; importers to be free to import within their sterling allowance, subject to ordinary tariff control and prohibition of certain lines; direction of trade to be controlled by tariff.

The remit was moved by Mr L. D. Nathan, who contrasted the incoming cargo at present with that of 12 months ago- .

Mr A.Ely (Auckland), in urging complete abandonment of the present restriction, said that it was recognised that such a move could not be made without some transitory period during which some form of control must be exercised, such as was employed in 1932. On that occasion, however, the control was left in. the hands of the trading banks, which, in six months, were able to restore London funds to normal. Confidence in Banks. . Had the situation been squarely faced before it became acute, and had the trading banks had charge of it, the present crisis would possibly hot have developed. If the trading banks were to take control now it would be a tremendous task, but he felt that the commercial community had great confidence in the trading banks. Import restrictions formed the kernel of the commercial communities’ operations to-day, and only by their removal could hopples which now checked the legitimate operation of industry be removed; Mr V, E. Hamilton (Canterbury) said that constructive discussion was essential. If the Government was to carry out its policy—— A voice: Not if we can stop them I Mr Hamilton said that as the Government desired to achieve the triple objective of controlling sterling and protecting local industry and directing trade to various countries, it was considered by the Canterbury Chamber that this aim could be achieved by a simple formula, which he gave as follows: First, each importer to have allocated to him the total sterling he would be entitled to each six months; second, system to be abolished and importers to be free to import within their sterling allowance, and subject to prohibitive lines and tariff control; third, direction of trade to be controlled by tariff. This he moved as an amendment. .

While there might be some who believed that everything should be left to the trading banks, added Mr Hamilton, one of the chief functions of the Reserve Bank was to budget imports on the probable value of . exports, and the Government was entitled to have its Reserve Bank to do this.

Ml* A. M. Seaman (Auckland) alleged that the Canterbury proposal was a deliberate attempt to sabotage negotiations which were previously passed by correspondence between, the two chambers. The amendment was lost and the remit carried.