‘Flabbergasted’ Over Import Schedule

Press, Volume CV, Issue 31027, 5 April 1966, Page 12

‘Flabbergasted’ Over Import Schedule

Members of the Canterbury Manufacturers’ Association were “flabbergasted” over the 1966-67 import licensing schedule, a former association president (Mr R. H. Stewart) said yesterday.

The association was discussing the schedule, which cuts imports by about 15 per cent.

A vice-president of the association (Mr J. D. Bull) said its members were “probably holding their ammunition.”

No firm action was decided upon by the association, other than to follow the suggestion of its president (Mr C. W. Mace). “I think we all agree the country has to do something,” said Mr Mace. “I don’t think any of us would like to have the Minister of Customs’ job at this stage.” He said meinbers should “hold their fire back” until the Minister (Mr Shelton) visited Christchurch on May 11. Mr W. H. Price said that in seeking improvements within existing industries, there must be room for some flexibility and for seeking efficiency and development of new industries. “Homework Needed” Mr J. K. Dobson said the association should do some homework, to produce facts and perhaps ideas about where improvements could be made, rather than say: “Bail ashore because, baby, we don’t like it.” Mr Dobson said he felt the association had to be realistic when it encountered problems nationally. It should not expect the Government or the Minister “to pull rabbits out of a hat.”

Mr Dobson said that if the country could only afford 85 per cent of imports compared with last year, it surely was up to manufacturers to prepare information to supply to the Minister, to see how seriously affected they would be.

Mr Dobson said manufacturers should tell the Minis-

s ter what effect the import licensing cuts would have on ■ industry. Mr Stewart said he thought the Government was “there to govern,” but said he was there only to govern a company. He felt he should know what he was supposed to do regarding the new schedule. Mr Stewart said that if one did not order unless one had a licence, New Zealand would grind to a halt in six or eight months. Anticipating Schedule He said he had to anticipate next year’s licensing schedule, because it took so long to get the goods. Normally businessmen tried to run their businesses for the coming 12 months, and at present he did not know whether he would break the law straight away by ordering for the next 12 months. The immediate past president (Mr R. G. Pearce) asked “Do we set out now to plan production, to have some goods available for the public late in the year, or do we do the thing Mr Shelton, in the schedule, has expressly requested us not to do?” Mr Pearce said that he thought Mr Shelton had said that manufacturers should plan their usage on the basis of the schedule. “I think he also said that no additional import licences would be issued to cover goods of manufacturers who ran out of material covered by licensing,” said Mr Pearce. “It would seem to me that if we do obtain from him the guidance that I think is our due, we should ask him to state unequivocally that, for

this current year, or coming licensing year, there will be no further licences issued.

“Unless he is prepared to state that, and if the powers-that-be are prepared to accede to pressure, it means by that manufacturers who abide by the spirit of the request will be penalised, as against their competitors, if they manage to persuade the authorities to issue them with extra licences.” Mr M. F. O’Brien said that he saw a “ray of hope” in that Mr Shelton had said that industry must be kept supplied with materials to sustain economic production. “I don’t think this Government or any other Government would let industry come to a standstill,” said Mr O'Brien. “I don’t think we should cry before we are hurt.”

Mr O’Brien said that the-85 per cent of last year’s imports represented 101 months’ supply. After that time, there should be some easing of the position. “I think the Government should be congratulated for the courage to do what it has done in an election year,” he said.

Introducing the discussion, Mr Mace said the cut in imports of manufacturers’ plant and machinery was serious, as it affected the over-all efficiency of New Zealand manufacturing. It made it more difficult to compete overseas.

“New machines can usually increase output two to 10 times that of old machines,” said Mr Mace. “You can expect a 5 per cent to 10 per cent annual price rise on overseas plant and machinery, which will result in manufacturers having to pay more for their plant when they buy it in future.