IMPORT LICENSING FOR 1962-63

Press, Volume CI, Issue 29770, 13 March 1962, Page 16

IMPORT LICENSING FOR 1962-63

Minister’s Explanation

Of Schedule

Private imports at a level between £24om. and £2som. are provided for in the 1962-63 licensing schedule. This level is the lowest since 1959. The Government is prepared to borrow money from overseas, if necessary, to keep imports at the level decided on, and to borrow additional money if it is necessary to maintain the level of imported raw materials it has decided on.

These points were made by the Minister of Customs and Associate Minister of Industries and Commerce (Mr Shelton) yesterday when he released the importing licensing schedule for the period July 1, 1962, to June 30, 1963.

“The level of private imports represents a considerable easing in relation to the 1961 supplementary period. In general, the provision made for essential raw material imports under the schedule is expected to allow manufacturers to maintain actual usage at a level consistent with that for 1960,” Mr Shelton said.

Private imports over the la.’t five veers have totalled: £ 272 5m (19611, £255 8m (1960), £206 2m (1959), £ 240 0m (1958) and £268 Im (1957).

It was not proposed to accept any further applications under the 1961 supplementary schedule as from today, said Mr Shelton. Applications already on hand would be dealt with but all future applications would be considered in terms of the new licensing schedule. “Last year we announced our intention of bringing our overseas trading steadily back to balanced conditions wiioout the adoption of drastic measures.’’ Mr Shelton said. “The reduced level of imports experienced since October indicates that the policies adopted are achieving good results and the steps now taken for the 196263 period represent continuation of the gradual reduction of imports and the avoidance of panic action consistent with that trading policy. “Many of the allocations provided for raw materials in the new schedule were based on 75 per cent of 1960 licences,” be said. “Though this might appear restrictive, a great many of the items were under the R licence (replacement licences) scheme in 1960 and actual imports were considerably lower than the value of licences issued. “The 75 per cent, allocation is believed to provide approximately the same gen-

eral level of essential raw materials for manufacturers as in 1960.

“The Government will ensure that essential raw materials are available to manufacturers to that extent, even though this might require additional overseas borrowing,” said Mr Shelton. “One of the main purposes of New Zealand joining the International Monetary Fund was to obtain overseas finance for capital development and so ensure that our normal trading funds were more readily available to meet the import requirements of our manufacturing industries.

Regrouping

“The schedule now introduced is based on the form of the 1962 Customs Tariff which comes into force on July 1, 1962. This is a document listing over 4000 separate items. In accordance with the Government’s desire to allow the greatest possible flexibility, the tariff items concerned have been regrouped into something less than 1000 separate items for purposes of import licensing The allocations allowed for most of these groups are available for the importation of any or all items included in the particular group” As many items as possible had been provided with a basic allocation at the maximum level, said Mr Shelton, so that each importer would know as early as possible the arrangements he could make to place orders and spread shipments. “A total of 578 of the item groups listed in the schedule were subject to a basic allocation. This number would have been higher but for certain difficulties in obtaining a more direct translation from the old licence schedule items to the new form. Because of these difficulties more items than we would have liked had to be designated “C” (goods for which applications for licences will be considered individually.) “As I have stated, the Government intends to provide for a level of private imports approaching £250 million for the period,” said the Minister. “The adoption of a new schedule form has made it difficult to estimate actual expenditure likely to occur until all basic applications are dealt with.

“If importers will co-oper-ate by lodging applications for their basic licences without delay it should be possible to review the expenditure involved early in July If this review shows that further licences should be issued, then this will be done.” Other Provisions Mr Shelton outlined other provisions in the schedule as follows: — Book Imports.—“lt Is not yet possible to free book imports from control, but licences will be granted to the full extent of licences issued in terms of the original 1961 schedule Imports of books written by authors domiciled in New Zealand will be exempt from import licensing The addition of this item brings the total number of exempt items to 10.”

"A” Items. — “A new ‘A’ category (licences to be granted to regular importers to the extent of 75 per cent, of similar from all sources during the 1960 licensing period), introduced to ensure continuity of supply while avoiding any undue build-up of stocks has been provided for 15 licence item codes and will include such items as sausage casings, iodised salt, tea in bulk, unmixed birdseed, passover bread, communion wafers and dry flong for the manufacture of matrices. Because of the limitation of available funds, the scheme would be restricted to normal and regular importers of the goods concerned.”

Token Licences. “The Government has considered the question of the token licence scheme and has decided regretfully that it cannot be continued in the 196263 licensing period. Although imports made under this scheme provide a very useful purpose in allowing comparison with similar goods made in New Zealand, at the present time the overseas expenditure involved must be devoted to more essential imports.” “R” Licence Deductions.— “Certain deductions were made from licences issued under the Supplementary Schedule for items previously in the ’R’ category. It has been decided that no further deductions will be made for the 1962-63 period." “Bicycle and motor-cycle imports are cut 50 per cent. “The allocation for whisky and brandy is 100 per cent, of 1960 licences, but there is no provision for imports or gin and vodka. Gin is now made here. Wine imports are cut 25 per cent. There is a 60 per cent, cut in crockery imports. “This follows an increase in production of New Zea-land-made crockery.”