Reply on import control comment

Press, Volume CXI, Issue 32567, 29 March 1971, Page 2

Reply on import control comment

(N.Z. Press Association) WELLINGTON, March 28. The Minister of Customs (Mr Adams-Schneider), said at the week-end that he was most interested in the way the president of Federated Fanners (Mr A C Begg) had avoided answering the points he made earlier this week when replying to his comments on the slow progress being made in dismantling import controls.

“I note particularly that for the second time in the last month Federated Fanners has thrown up an unsubstantiated figure for the alleged cost to the consumer of protecting the New

Zealand manufacturing sector,” the Minister said in a statement

“The earlier figure of s32om and the s6oom now quoted presumably purport to represent the difference in cost that arises from the purchase of New Zealand manufactured goods as against buying the goods at the cheapest world price.” Mr Adams-Schneider said that experience has shown that any attempt to measure the cost of protection is a complex matter, and because of inadequate data is open to a wide margin of error. Thus, any figure arrived at must be highly misleading in assessing the effect of the manufacturing sector on the economy as a whole. Finally, any figure is misleading unless it also takes into account the benefits to be gained from such protection. He agreed that the Government had a better case for access to overseas markets when goods New Zealand wanted to export did not have restricted access into this country. “The sooner we get the cooperation of all sectors of the community the quicker we can implement announced Government policy.” Mr Adams-Schneider said. Meanwhile, the president of the New Zealand Manu-

facturers’ Federation (Mr L. H. Stevens) said in a statement: “The pressure being applied by the unholiest alliance between farmers and retailers aims at the precipitate removal of import licensing. "Their attitude only serves to highlight their lack of appreciation of long-term policies required to ensure a rising standard of living for a growing population,” Mr Stevens said.

“The Government obviously recognises the importance of industrial development and the necessity for an adequate level of protection, and for any change to be made with extreme care, with satisfac-

tory safeguards, and in accordance with an agreed

programme. “Any change in procedure would be quite unacceptable to manufacturers,” he said.