RAW MATERIALS IMPORTS

Press, Volume CII, Issue 30085, 20 March 1963, Page 12

RAW MATERIALS IMPORTS

Flexibility Provided In New Schedule (From Our Own Reporter) WELLINGTON, March 19. Provision for a wide range of important raw materials to be more readily available is made in the 1963*64 import licensing schedule released tonight by the Minister of Customs (Mr Shelton).

No change has been made in licences for motorvehicles.

For the licensing period, allocations have been based on the maintenance of imports at a level which will allow an expenditure of £250 million for private import payments.

Increases have been made in the allocations for dried fruits, canned fish, adding machines, cartridges of types not made in New Zesfland, and certain types of seeds. Printed books and detonators have been exempted from import licensing. Many important raw materials needed by industry have been placed under the “A” category, which allows the issue of additional licences against actual needs as demonstrated by sales or use in manufacture by the licence-holder. Among these raw materials are most cotton fabrics, most classes of unfabricated iron and steel, crude rubber, raw coffee, galvanised corrugated iron and wire netting.

AU printed books are exempted in the new schedule The exemption does not apply to magazines, newspapers or periodicals (including comics).

The practice of issuing separate licences for cars imported from dollar and nondollar sources will not be continued in the 1963-64 period. These licences will now be available for imports from any source like all other commodities. Other goods under the “A” category include most basic metals in ingot or primary forms, unground spices, gypsum, waxes and tanning materials, shellac and certain gums and resins, kapoc. petroleum jelly and some mineral oil products, many dry colours and pigments used in paint manufacture, timber preserving preservations, and match splints. Certain medicinal preparations and drugs notably most drugs approved on the free list for Social Security —have been placed under the “A” category Other goods are domestic and industrial sewing machines. infants’ feeding bottles and teats artificial eyes, sewing needles and gramophone needles, engineers’ studs. aircraft parts, and infants’ footwear Mr Shelton says the inclusion of galvanised corrugated iron and wire netting will help to ease the supply position in certain areas Policy Extended Mr Shelton says it has always been the Government’s desire to exempt printed books from import controls, but this has not been possible because of the overseas funds situation The first step was taken last year when books written by New Zealand authors were exempted from licence. The exemption will operate from the date of release of the new schedule.

A special scheme under which manufacturers may

group licences for a wide range of commodities they require was announced by Mr Shelton He said it should assist materially in providing manufacturers with greater flexibility in the use of their available import allocation.

Mr Shelton said a considerable degree of regrouping bad been achieved in the schedule itself. A further group scheme was at present being prepared but could not be incorporated in the printed schedule. Details, would be released in the near future by the Customs Department The purpose and intention of

se modifications was to allow licence holders greater freedom and choice in determining the nature and class of goods they might import Private Imports

“For the period from July 1, 1962, to June 30, 1963, the Government announced its intention to provide licences for imports at a level which would allow an estimated expenditure of £250 million for private import payments and was prepared to borrow overseas, if necessary, to sustain imports at that level," said Mr Shelton. “Some overseas borrowing was required and present indications are that private .import payments for the period could come close to the planned total. “At present the prices being received for our major exports are better generally than those which ruled at the time the 1962-63 schedule was released, but there is no assurance that these prices will continue on any longterm basis. New Zealand’s past experience is, I believe, convincing proof that sound economic growth is more possible under stable import conditions than in circumstances where imports fluctuate violently in direct relation to New Zealand’s overseas exchange situation. “It may appear strange that the liberalisation now possible can be achieved

within the same value of overseas funds as allocated for 1962-63,” said Mr Shelton. ’.‘Considerable research has been devoted to the preparation of the new schedule, both in relation to licence usage and changing trends.

“With many commodities the major problem is not the total level of licences issued, but the actual distribution of those licences. Because of factors such as greater competition or changing fashion trends the need of one licence-holder may increase but this extra requirement is compensated for or off-set by a falling off in the demand for similar goods by other licence - holders. Thus, although over-all imports are the same, one licence-holder has less licence than he needs while another holds more value than he requires. “It is this continualy changing pattern of import trade which presents the major difficulties in any form of control. The Government considers the changing needs of the economy can best be met under the more flexible provision of the ’A’ category, and the grouping of item code licences without giving rise to any major increase in import expenditure. “It has been possible to adopt the ‘A’ category only where the full import requirements of a particular commodity must be met. For this reason it has not been possible to extend the ’A’ category to other classes of goods at this stage. “Most other commodities have been retained at the same allocation level as last year although some reductions have been made where it has been found that the over-all use of licences for particular commodities has been low during the last licensing period. In a number of instances the low usage has been caused either by changing import trends, the effect of the Customs tariff introduced in 1962, or by new or increased manufacture within New Zealand."