Big Applications For “A” Licences

Press, Volume CII, Issue 30216, 22 August 1963, Page 7

Big Applications For “A” Licences

(A'ew Zealand Press Association) WELLINGTON, August 21. Applications for additional licences under the “A” licence category, in most cases representing values several hundred times higher than the particular importer’s normal imports in Past. y ears . had been received from many importers, said the Minister of Customs (Mr Shelton) today in outlining modifications that are being made under the “A” allocation.

‘ Although every importer has already received an initial licence representing 75 per cent of his 1962-63 licences, many of the applications for additional licences v ere received before the new licensing period actually commenced." he said. “The Government's intention in extending the scope of the ‘A’ licence scheme to a wide range of important basic raw’ materials in the 1963-64 schedule was to provide an adequate and flexible means of licence issue that would allow for expansion of production, stimulate competition, and allow the more efficient producer reasonable access to raw material requirements,” Mr Shelton said. “This is still our intention." said Mr Shelton, “but it is apparent from the volume of applications for additional licences now being received, many of which appear to be quite unrealistic in the light of previous performance, that some more detailed examination of the applicant's need must be introduced if we are to avoid the danger of over issue of licences and the stockpiling of materials. “The Government has no desire to limit imports under ‘A - category items which are needed for actual production during 1963-64, but it does not intend needlessly to commit our limited overseas exchange merely to build up stocks of raw materials within the country.” Full Review Mr Shelton said: “A full review has been carried out and Mr Marshall and I have discussed the problem fully with representatives of the major trade organisations concerned in the importation and use of the raw materials at present covered by the ‘A’ scheme. "Of the 108 items designated as ‘A’ in the 1963-64 schedule there are seven items in which the danger of overissue of licences and the consequent risk of stockpiling present real problems. “All applications received for these items will be subject to the modified procedure.”

These items were textile fabrics w’oven of cotton, etc., plastic moulding powders, plastic plates, sheets, strip, etc., unrefined copper, wrought plates, sheet strip and tube, etc., of copper or copper alloy, unwrought aluminium, and industrial sewing machines. Similar action would also

apply to individual applications under any of the other “A” items where the extent of the increase requested indicated the need for a fuller examination of the applicant's actual requirements. "Licences for ‘A’ items have already been issued on an automatic basis to the extent of 75 per cent of the level of licences tor similar goods during the 1962-63 licensing period,” sa-id the Minister. Other Sources “Many licence holders have previously obtained a proportion of their total requirements from other sources of supply and in terms of the amended procedure to be adopted in the above instances, these licence holders ■ w'ill be expected to obtain at least 75 per cent of those requirements from such suppliers during 1963-64 unless exceptional circumstances prevent this. “Applications for additional licences above this 75 per cent level will be considered against actual need and in respect of the seven items set out above and in those cases where applications under the

remaining items appear excessive a more thorough investigation will be made," the Minister said. “I sincerely regret the need to take this action,” said Mr Shelton, “but it is better to do so now and deal with everyone on a uniform basis than be forced to make a change later in the period and possibly create inequities as between individual importers. “I must stress again that it is still the Government’s intention to preserve the major objects of the scheme which allow for a greater measure of flexibility to meet actual needs.” However, the Government was not prepared to risk the unnecessary expenditure of overseas funds which appeared most likely to arise if the applications so far received by the Customs Department were a true guide, he said. Interested importers may obtain full details of the amended provisions now in force from all offices of the Customs Department from Friday.