State Services Trade Department Not Supported

Press, Volume C, Issue 29625, 22 September 1961, Page 12

State Services Trade Department Not Supported

(New Zealand P/ess Association)

WELLINGTON, Sept. 21. The establishment of a department of trade to be responsible for both industrial development and international trade might be appropriate for the United Kingdom and Australia, but it would not be desirable in New Zealand, the deputy Secretary of the Treasury (Mr A. B. Taylor) said today. “A better alternative would be for the functions of trade promotion and trade relations to be transferred to the Customs Department, thus leaving the industrial development as the main function of the Industries and Commerce Department," he said in submissions to the Royal Commission on State Services.

The Customs Department already had the primary responsibility for the administration of the tariff and import licensing, in association

with Industries and Commerce, and had, in earlier years, played a major part in international trade negotiations. he said. Sir William Dunk had recommended the establishment of a department of trade and this was supported in principle by the Public Service Commission, said Mr Taylor. However, in the opinion of the Treasury, it would not be desirable in New Zealand.

“If it is accepted that export promotion should be divorced from development of domestic industry, it might be suggested that the trade promotion and trade relations sections of the existing Industries and Commerce Department should be formed into a new department of trade.” Mr Taylor said. This would add to the number of departments and could increase the difficulties of coordination.

Responsibility for the promotion of New Zealand's export trade was too important to be made a subordinate function of any department. Mr Taylor said. “If the responsibility is given to a reconstituted Customs Department. that department’s revenue collection duties would still remain, but Its departmental structure would need strengthening.” The trend in recent years had been for the part played by the Customs Department in the field of external trade policy to recede in importance, and this development had been reflected by a loss of suitably trained and qualified officers, Mr Taylor said. “The Treasury’s view is that this trend should be reversed and that the major functions of a department of trade, apart from industrial development, should be centred in a reconstituted Customs Department, which might be named the department of trade,” he said.