FREER ENTRY OF IMPORTS

Press, Volume XC, Issue 27402, 15 July 1954, Page 16

FREER ENTRY OF IMPORTS

CHECK ON PRICE INCREASES The New Zealand Goverment’s relaxation of import restrictions after the buoyant export season and the resulting rise of imports has left a substantial surplus of earnings on international account. This is stated by the Australia and New Zealand Bank, Ltd, in its latest quarterly survey. “Freer entry of imports tends to mitigate inflationary dangers in two ways,’’ it says. “It provides more competition and it checks price rises because the goods available to New Zealand importers on world markets are tending to cheapen." Although the Dominion’s growing population and factories are absorbing an increasing quantity of raw materials produced by her primary industries, exports continue to be the main determining factor of the country’s prosperity. One threatening danger, continues the survey, is that the prices received abroad for her exports may fall or the Dominion’s internal costs may rise to such a degree that exports on world markets become less profitable, so that the quantity of production is depressed and total export earnings decline. With a high level of employment, indicated by a heavy demand for labour—more persistent for females than males—and a rise in purchasing power shown by increased savings deposits, buoyant insurance business and high retail spending, heavy pressure on financial resources can be expected.