Importers may ‘save’ quotas

Press, Volume CXIV, Issue 33609, 10 August 1974, Page 2

Importers may ‘save’ quotas

(New Zealand Press Association) WELLINGTON, August 9. The Government has no intention of reducing import licences already issued under the 1974-75 licensing schedule or of reimposing import licensing on free items.

But it will encourage importers to restrain imports in some commodities. This was said by the Minister of Trade and Industry (Mr Freer) in an address delivered this afternoon to the Accountants’ Society in Dunedin.

Reports received by the Department of Trade and Industry indicated that stocks, both at wholesale and manufacturing level, were substantially higher than had been the case for some considerable time, the Minister said. "These stocks result from the additional purchases placed last year by many importers who quite properly endeavoured to cope with a difficult world-wide commodity shortage. “In some instances substantial purchases were made in an endeavour to offset the inflationary tendency in prices, and in many areas importers and manufacturers were fortunate in this regard," he said.

However, with a large number of commodity prices now declining on world markets, it was necessary that importers should consider the extent to which they should avail themselves of the licence or freedom to import now available to them. •Tor this reason Government has decided that any importer who decides not to exercise the full amount of his licence because of the satisfactory stock position in New Zealand may surrender a portion of that licence to the department. •, SURRENDERED "In the event of his doing so before December 31, 1974, additional licences up to the level of that surrendered will be available to the importer m the 1975-76 import licensing year or in subsequent years, should he require it,” the Minister said. The Minister said that the decision on the extent of import licence utilisation must rest with the importer himself.