The Press SATURDAY, AUGUST 9, 1958. Planning Under Import Controls

Press, Volume XCVII, Issue 28660, 9 August 1958, Page 12

The Press SATURDAY, AUGUST 9, 1958. Planning Under Import Controls

Prospects of continued price fluctuations on world commodity markets make the task of estimating New Zealand’s income a difficult one, but the Govern-

ment’s import control policy must be based on such an estimate. Decisions about the volume of imports it wjli allow must be made well in advance if secondary industry is not to be handicapped unnecessarily. Planning is essential if manufacturers are to achieve their aims of increased and efficient production and if men and machinery are to be kept working; but planning is not possible while industry is in doubt about the volume of raw materials it will receive. The Government should heed the appeal by the president of the New Zealand Textile and Garment Council (Mr J. Wharf) for an end to licensing delays, which he described as “ a serious handicap “ to efficient planning and pro- “ duction ”, Some manufacturers have received licences for only a percentage of their 1956 imports and some for 100 per cent. Even the latter are finding the quantity is insufficient for 1958. when they not only have to try

to replace the cuts in clothing imports, but also have to provide for the needs of a population that has grown by 109,000 in two years. The industry wiJJ, no doubt, rely increasingly on raw materials produced in New Zealand; but even if New Zealand becomes self-sufficient in woollen goods, reduced income from wool exports will have to be set against the saving in imports. Some raw materials are necessary in any event. If the Government’s failure to plan ahead causes difficulties for the industry and, perhaps, a shortage of clothing, it will be forced subsequently to review the import limits it sets. It would be far better practice to let the industry know at the earliest opportunity what to ■expect even if, as Mr Nash has hinted, heavier cuts are necessary. Mr Wharf has warned that manufacturers will be “in serious “ straits ” next year if they are tied to the present volume of imports, but if heavier cuts are indeed necessary, manufacturers would rather be advised in advance so that they can cut their cloth accordingly. It is the unknown, not the known, that causes, uncertainty in industry.