New Import Schedule On “Steady-does-it” Lines

Press, Volume CI, Issue 29766, 8 March 1962, Page 14

New Import Schedule On “Steady-does-it” Lines

(N.Z. Press Association)

WELLINGTON, March 7 Sufficient raw materials to safeguard the employment position were ensured in the 1962-63 import licensing schedule, which was expected to be ready for publication next Monday, the Prime Minister (Mr Holyoake) said tonight. “While imports will be at a reduced level during the new licensing period, the schedule is another planned step in the Government’s ‘steady-does-it’ policy,” he said.

“There will be no spectacular changes, no shock tactics and no panic measures in pruning back the flush of Imports allowed by the Labour Government just before the last election for the 1961 licensing period,” said Mr Holyoake. “That sechedule resulted in private imports (hiring the first nine months of last year flooding in at a very much higher rate than current earnings.

“Import ‘ payments for the last three months of the year dropped sharply as a result of the National Government’s action in cancelling replacement licences, extending the 1961 licensing period to ewer the first half of 1962, the tightening of credit, and other measures.

“However, for the whole of 1961, payments for private imports were £ 16.6 million higher than for the previous year.

“At the same time our export income felt away during 1961 and the balance of trade

and of non-trading items, such as travel remittances and freight,' taken together resulted in a deficit of £52.5 minion for the year, the equivalent of £ 1 million a week.

“Such a state of affairs obviously could not ' be allowed to continue,” said Mr Holyoake. The Government financed last year’s deficit mainly by borrowing £262 million in two overseas loans and by running down overseas reserves by £16.9 million, the •balance of £9.4 million being accounted for by inflow of official and private capital. The Government would continue with its policy of “steady-does-it” in bringing overseas trading back into balance, he said. “The new import schedule is aimed to ensure that the economy is net disrupted by loss of confidence, unemployment and other repercussions that drastic import cuts would quickly bring,” he said.