Import decontrol attacked

Press, Volume CXI, Issue 32666, 23 July 1971, Page 2

Import decontrol attacked

(N Z. Press Association) WELLINGTON, July 22. The Labour Party spokesman on industries and commerce (Mr W. W. Freer) today criticised the announcement by the Minister of Finance (Mr Muldoon) on the relaxation of import licensing.

“Although the Minister of Finance is apparently satisfied with the present balance of overseas reserves, he knows that any early and extensive relaxation of import licensing can only result in the serious depletion of funds which may be urgently required to cushion the effects of Britain’s entry to Europe,” said Mr Freer in a statement. For some considerable time the terms of trade had been working against New Zealand. It had required an ever-in-creasing volume of exports to purchase the same quantity of imports, so this was not the prudent time to relax imports on a wide or genera’ scale, Mr Freer said. DEFICIT FORECAST “Although overseas reserves are at present relatively sound, the Minister knows that the Institute for Economic Research has recently predicted continuing deficits in our balance of payments.

“Perhaps this is the reason Mr Muldoon and his colleague. the Minister of Customs (Mr Adams-Schneider) [have failed to give any indication of when it is proposed

actually to begin relaxation ol import controls,” he said. The Government was try- • ing to curry favour with the . fanning community, which was sorely pressed by the Na- • tional Party’s financial policy, by appearing to take action

to meet the constant call from Federated Fanners for the removal of import licensing. “The Government should make it perfectly clear that the normal work of the Tariff 'and Development Board will

not suffer as a result of the extra work to be placed upon its staff. It should also state what steps it proposes taking to ensure that realistic tariffs will be introduced to protect local industry from the dumping which will inevitably follow removal of licensing in some sectors,” said Mr Freer. “REAL PART”

The president of the Manufacturers’ Federation (Mr L. H. Stevens) said today that an objective review of the situation facing many New Zealand industries would reveal that import licensing had a real and continuing part to play in the furthet development of manufacturing.” "One need only look at those industries which are making a substantial contribution to the export drive today, and whose growth has been made possible by import control, to realise the advantages of the existing system.” said Mr Stevens. The move from imnort control to protection by tariff was Government policy, not manufacturers’ policy. Precipitate action could sacrifice long-term development at the exnense of possible shortterm and even illusory gains. OVERHAUL URGED

"Manufacturers are not necessarily wedded to import licensing as the sole means of protection, but an overhaul of the tariff stricture, both as to the type and the extent of protection Piven, is overdue. "The tariff is suffering from 30 years of neglect and, in its present form, is quite inadequate for the nrotection of industry,” Mr Stevens said.