Announcement Of Licensing Schedule On Monday

Press, Volume CIX, Issue 32251, 20 March 1970, Page 26

Announcement Of Licensing Schedule On Monday

(From Our Own Reporter) I WELLINGTON, i March 19. I The import licensing ) schedule for 1970-71 will! be released by the Min-) ister of Customs (Mr) Adams - Schneider) on | March 23. This will! answer many questions) (about New Zealand’s; import future.

Last October Mr AdamsSchneider said that he would de-license items amounting to $75 million. Since the relaxation of licensing on a number of items has been announced, and according to some sources the schedule will consist of “simply a list of items” when it is finally released.

On February 20 the Gov-; ernment announced a 25 per cent increase in the number of new cars for the next import licensing year. The cost in overseas funds will be close to $2O million. A further list of items to be exempted was announced at the end of February, and Mr Adams-Schneider then made it clear that if there were no objections these goods would become exempt on July 1. They would join goods on the previous decontrol list (published in October), to whi<;h there had been no objections.

Mr Adams-Schneider said today that nearly two-thirds of New Zealand's private imports were now subject to licence. The most significant on the recent list related to motor-cycles. The intention is to free from quantitative control all imported commodities except for a small group of “hard core” items. “Both consumers and businessmen expect to see a wide

: range of goods released from ) import control in the new) ) licensing schedule.” the pre- ; sident of the Canterbury I Chamber of Commerce (Mr I J. M. Tocker) said yester)day. ■ “When releasing last year's j schedule the former Minister of Customs (Mr Shelton)

said that over half of all imports were now free of control. With our overseas funds in a healthy state, now is the time to free at least another 25 per cent and pave the way for complete freedom next year.”

Rising Government and private expenditure had created a strong pressure of demand on resources, said Mr Tocker, This pressure had created a severe labour shortage and was already pushing prices land wages upwards. Wage increases in export industries were welcome as long as those industries were; (competitive, as they helped people to move to exporting firms. But, every industry ; affected exports Costs, and risjing wages in other industries • could price New Zealand out of overseas markets and make a further devaluation inevitable at some future time, Mr Tocker said. “What we need now is either an easing of the pressure of demand or an increase in the supply of goods available, or both,” he said. Government’s Part

The quickest and most effective way of easing demand was to cut down Government expenditure, as Mr Muldoon had found very quickly in 1967, Mr Tocker said Mr Muldoon should now slow down such things as new works construction and release a few people for other jobs where they were badly needed. On the other side of the coin, the balance could be restored by increasing the supply of goods available in New Zealand. As New Zealand’s own resources were already fully committed this meant greater freedom to import, and Mr Tocker said he welcomed the Government’s recent decision to allow an extra 15,000 cars to come into the country this year.

“But this is not nearly enough,” he said. “Now is the time to release, if not all goods still under import con-

trol, at least a major proportion.

“I was astonished to find recently that many lines of manufacturers’ raw materials and plant not made in New Zealand are still controlled,” he said. “There can be no justification for such a state of affairs today.” Where imported lines were competing with home production, import restrictions should be replaced by reasonable tariffs, without protecting infant industries indefinitely. The time was also ripe for greatly easing controls over foreign exchange, Mr Tocker said.

“Many foreigners consider us poor relations, mainly because of our low allowances for overseas travel and because the New Zealand dollar sells at a substantial discount in the free markets of the world. New Zealand’s image could be greatly enhanced by the simple measures of increasing travel allowances, perhaps to the Australian level of $4OOO a year, and restoring a free flow of banknotes into and out of New Zealand.

“Thus the Government should act now to reduce expenditure, increase imports, and relax monetary controls on foreign exchange. All these measures would help to restore a balanced economy which would provide a sound foundation for future growth.”