Short-Term Supplement

Press, Volume CIV, Issue 30892, 27 October 1965, Page 1

Short-Term Supplement

Announcing the application for £22.4 million. the Minister of Finance (Mr Lake) in a statement to Parliament this afternoon, said this would be a short - term arrangement to supplement the level of New Zealand’s external reserves.

The drawing was also an indication of the Govern ment's determi nation not to move back from its declared policy of import liberalisation, Mr Lake said. Items exempt from import licensing would remain free The House greeted the statement in silence. "The amount involved represents the gold tranche and the first credit tranche of the drawing rights available to New Zealand under present quota arrangements “As members will be aware, the Government has progressively introduced a number of measures designed to inhibit the growth of demand and thus reduce the strain on domestic resources and on

the balance of payments,” Mr Lake said. “In doing this, the Gov eminent has taken care to ensure the -continuation of productive investment, par ticularly in our existing export industries and in those with an export potential on I both of which we must rely to increase our overseas earnings. “This positive approach should be reflected soon in increased production of ex-

port commodities and in Increased export earnings while, on the other hand, the cumulative effect of the measures we have taken to inhibit the growth of demand should be reflected in a levelling off of imports ! “To some extent, concern by importers that the recent further liberalisation of the import licensing system might not be permanent, could have influenced their ordering,” Mr Lake said.