NEW ZEALAND AID TO BRITAIN

Press, Volume LXXXIII, Issue 25270, 23 August 1947, Page 10

NEW ZEALAND AID TO BRITAIN

Recommendations Made By Conference

SMALLER NEWSPAPERS AND FEWER U.S. FILMS

From Our Own Reporter WELLINGTON, August 22. If the recommendations of the “Aid to Britain” conference, which ended to-day, are adopted by the Government New Zealanders will see fewer American films next year. There will also be cuts in the size of newspapers and voluntary reductions in petrol quotas and the consumption of cigarettes and tobacco. An all-out effort will be made to restrain the spending of dollars, and to keep the expenditure of sterling within the limits of current income. A continuance of stabilisation and price control will also be sought.

The production and trade committee presented recommendations which were adopted unanimously by the conference, and appointed a permanent “helping Britain” committee to advise on questions the Government may refer to it.

“The conference has done a splendid »job,” said the Prime Minister (Mr P Fraser). “This will be a serious campaign. and a fight against the forces threatening to cripple the United Kingdom.”

Recommendations presented by the chairman of the production and trade committee (Mr F. P. Walsh) were as follows: —

Films.—That dollar savings in respect of films from hard-currency areas be achieved by increasing the film hire tax from 25 per cent, to 40 per cent., and that remittances to hard-currency countries be limited to an amount nbt exceeding £300,000 (New Zealand currency) in any one year, the balance due to be held in New Zealnad currency as a “frozer balance.”

Newsprint.—That the Newspaper Proprietors’ Association be thanked for its approach to the problem, and that the Government accept its proposal to reduce its application for the importation of newsprint from Canada and Newfoundland in 1948 from 27.042 tons to 17,000 tons. This saving in dollars is equivalent to £450.000 (New Zealand currency), and represents a reduction of 45 per cent, usage on a pre-war basis, as against 32 per cent, at present. The recommendation also covers books and periodicals. “We feel that this reduction is equitable when other restrictions placed on the people are taken into consideration,” said Mr Walsh. Voluntary Petrol Saving Petrol.—That there be a reduction of 10 per cent in New Zealand’s monthly quota. That in view oi the additional unproductive work involved in a coupon ana licence system, it was desirable that such a system be avoided, and that a voluntary system be tried. That the co-operation of the whole community be sought in an effort to obtain the result without the need for coupons. “If the Government is called upon to introduce rationing, 500 persons will be needed to work the system,” said Mr Walsh. “It is up to the people to see that this won t be necessary.” Tobacco.—That the question of dollar savings on tobacco be referred for examination to a permanent committee, and that an appeal be made to the public to cut down tobacco consumption by 10 per cent.

Mr Walsh said this was one of the “knottiest” problems before the committee, which did not feel competent yet to make any definite recommendation “We are not shelving the problem—only delaying it.” he added. Imports and sterling assets.—That an approach be made to the United Kingdom to try to arrange a programme of essential imports, and to ascertain which goods the British Government wished to reserve for export to hard-currency countries. Current Money Supply

“Any building up of sterling assets which may result will add to the current money supply within New Zealand to the extent that it is not offset by current imports.” Mr Walsh said, “and this will create a situation requiring continuance of stabilisation and price control, Hi accepting the policy of holding sterling balances or increasing them, it should be recognised that the terms of trade between New Zealand and the United Kingdom are already adverse to New Zealand, ano that any further adverse movement would depreciate the value of New Zealand sterling balances Including the value of current sterling earnings, and undermine the economic and financial stability of New Zealand, in following a policy of not embarrassing the United Kingdom Government by seeking world market prices for cur produce, the terms of the trade position must be taken into account, so that our interna] stability will not be impaired.

“The best way to assist Britain is by seeing that our own economy is sound. People feel that now the war is over stabilisation and price control are not necessary, but in the opinion of the committee the need is greater than

ever before. Unless they are continued, we will have black marketing, and prices which shoot out through the roof.”

Production. —That measures should be taken to obtain the most effective resources of the country, including labour and material, toward maximum production, both for export and the satisfaction of essential consumer goods in New Zealand. The production of essential commodities should be encouraged.

Transport.—That the setting-up of local transport committees, representing road transport, railways, shipping, harbour boards, and the producers’ and workers' organisations concerned, be investigated. Such committees should have power to make recommendations to the National Industrial Emergency Committee. It was essential that the maximum use should be made of all available road transport, and it was recommended that Transport Licensing Authorities should consider the removal of all restrictions on back-loading and on the commodities to be carried. “We must try to overcome the bottlenecks,” commented Mr Walsh. Coal mining.—That the provision of accommodation at mining townships be given the highest practical priority as a means to attract men and retain them in the industry. The industry should have number one priority for the use of machinery for open-cut work and the importation of machinery needed for working existing mines and opening new ones. Dollar expenditure.—That the Government should consider delaying the purchase of supplies which are not of an immediate and vitally essential character and that an examination be made of the relative essentiality of capital works programmes, particularly those which involve dollar expenditure. directly or indirectly. Fertiliser Delivery Fertilisers.—That an immediate investigation be made into means of speeding up the manufacture and delivery of fertiliser to farms in the next two to three months an increase of 50 per cent, on the present normal monthly output being desired. Farm machinery —That the Government lift immediately the present import restrictions on farm machinery. Mr Walsh said that only with the aid of machinery could farmers increase production.

Casein.—That the British Government be consulted to find whether the production of casein should continue, or whether a change-over should be made to food products. Calfskins and woolly sheepskins.— That an examination be made to ascertain the extent to which calf and woolly sheepskins and pickled pelts are being diverted from export to the manufacture of non-essential commodities

Tourist earnings.—That all avenues be explored to encourage tourists from hard currency countries, particularly the United States, to visit New Zealand thereby increasing this country’s dollar earnings. Visiting entertainers. —That the Reserve Bank keep a watch on the visits of wrestlers, boxers apd entertainers involving the remittance of hard currency, with a view to restricting or reducing such remittances.

Cardboard, printing, writing, and wrapping, paper.—That the usage of these items be referred for examination to the permanent committee.

Publicity.—That the people should be kept fully informed of the problems involved, and the reasons for the economy steps being taken.

The following “Helping Britain” committee was formed:—Messrs F. P. Walsh (chairman). H. E. Blyde (Federated Farmers). W. J. Truscott (Manufacturers’ Federation), D. A. Robertson (Ship Owners’ Federation/ Haskell Anderson (Associated Chambers of Commerce). R Eddy (New Zealand Workers’ Union) H. G. Kilpatrick (Freezing Workers’ Union) F Crook (Miners’ Union). K. McL. Baxter (Federation of Labour) This committee will have power to add. and a recommendation was made by the conference that a delegate from women’s organisations should be appointed.