“Cautious Policy On Imports Until Prices Are Stable"

Press, Volume XCVII, Issue 28540, 20 March 1958, Page 8

“Cautious Policy On Imports Until Prices Are Stable"

(New Zealand Press Association)

WELLINGTON, March 19. "I believe the people of New Zealand are realising the seriousness of the exchange crisis which faces the country at present. For the first time since the great depression of 1929-35 this country is faced with a severe fall in overseas prices for each of the four major products we export,” said the Minister of Customs (Mr Boord) tonight. He was commenting on the criticism of Mr A. L. George, chairman of the import committee of the New Zealand Retailers’ Federation, who yesterday urged the Government to take more positive action to overcome the exchange crisis. Mr Boord said Mr George should recognise there was an exchange crisis. Difficulties would occur while prices continued to fall if no stable level was reached. “In such a situation a very cautious policy must be adopted and it is not until prices have attained some stability that the full amount of exchange which can be made available to importers can be gauged with accuracy,” said Mr Boord.

“Mr George suggests the Government should do something about what he terms a ‘spectacular export drive.’ There is no doubt the present Government will spare no effort to attain new markets but the supplies of our major products that such markets can absorb is relatively small. Our difficulty principally has been caused by the price fall which has taken place and not by the inability of markets to absorb our produce. “I can assure Mr George that I have not misunderstood any request to set up an appeal

authority. While it might be highly desirable that importers should have some authority to which appeals could be made, such an authority would be useless unless it had power to grant appeals. To have such power the authority must have the ability to authorise the issue of licences and thus disperse overseas exchange. At the sarne time, it could have no responsibility whatsoever for either earning or conserving exchange.”