Lifting Of Import Controls Sought

Press, Volume CIII, Issue 30405, 2 April 1964, Page 6

Lifting Of Import Controls Sought

(New Zealand Preet Aseociation)

WELLINGTON, April 1.

Federated Farmers called for the progressive lifting of import controls on woollen piecegoods and yarns, and the reduction of duties on woollen products not made locally, in submissions today to the Tariff and Development Board.

But if any additional protection to the New Zealand woollen mills was given, it should be by way of bounty or direct grant from the Government, said the submissions, presented by Mr J. C. Adams.

The board is conducting an inquiry into the treatment which should be given to fibres, yarns, and fabrics of wool, or of man-made fibres or mixtures, by way of tariff and import licensing. Mr Adams said although the granting of bounties as assistance to industry was not common in New Zealand, it was certainly envisaged by the legislature in the board’s enabling act.

“This assistance could be related to usage of wool and applied to reduce the cost of raw material to the millers, or it could be provided to augment an inadequate rate of earning consequent on the competition of a greater volume of imported woollen goods. “The inclusion in departmental estimates of such payments would enable the taxpayers to know just what protection of the industry was costing them.” Mr Adams said it was only by some solution of that nature that New Zealand could keep faith with the countries buying its raw wool who wished to trade in wool products, and at the same time provide for any special assistance which might be needed by local mills. The board’s recommendations should be made in the light of the international significance of the wool trade, and not just on factors and influences within New Zealand. “Show Sincerity” The Federation held strongly to the view that import licensing of woollen yarns and piecegoods should be progressively lifted as soon as possible to show the world New Zealand was sincere in its participation in international wool promotion programmes.

Consideration might be given to a reduction in customs duties on woollen products of types and classes not made locally, such reduction to apply till the local industry had moved into production.