Allocation slightly up

Press, 7 April 1978, Page 3

Allocation slightly up

PA Wellington I The Government has approved a basic import licence allocation this year of 1074 per cent of 1977-78 ■ issues for consumer goods land 1121 per cent for other i goods under licensing control. ,i Details of the import . licensing schedule for the • 1978-79 licensing period were released yesterday by Mr Adams-Schneider. I He said economic considerations justified the need for a continuing firm policy on imports, but within those limits the Government had taken steps to introduce I more flexible policies within I the schedule. i “The allocation for consumer goods will maintain adequate provision in that in 'general it will offset forej casted price increases and (thus maintain volume,” he said. “In the present economic I climate it is not possible to Igo beyond this. For other | goods with a basic entitleiment the allocation has been (set to take account of these Iprice increases and some (growth in production.” ' The Minister said the I | new schedule had been I prepared in an economic climate in which New Zealand was still running a currentI account deficit unsustainable lover a long term, and when I New r Zealand was facing | difficulties in the domestic I economy for maintaining I production and employment. I Although there had been al slight improvement in the (country’s overseas exchange (transactions New Zealand still had a balance-of-pay-ments problem. There had been a notice-; I able fall in import payments

in the 1977 December quar (ter, with a lower demant : throughout the domestit (economy, but forecasts foi (export growth in 1978-7$ I were uncertain. : That justified the need foj i a continuing firm policy or | imports, but the Government I had also taken steps to introduce more flexible policies within the schedule. Turning to the main changes in the new schedule Mr Adams-Schneider said the item code for made-up I footwear would be reduced | to a 90 per cent allocation for 1978-79. I That was because in the (last three years footwear - imports issued on a pairage (basis had received more -favourable treatment than ( imports of other consumer goods, he said. “There has been no change in the policy that applies to imports of “motorcars and the replacement licensing scheme for c.k.d. packs will continue.” Traditional importers of built-up cars would receive 1071- per cent of the 197778 allocation with a minimum allocation for small licenceholders. The Government had also reviewed its policies for ceramic tableware. The object would be for domestic manufacturers to supply 70 per cent of the total New Zealand market for tableware, he said. Boayworn hearing aids, which were no longer made in New Zealand, would be exempt from import licensing. To introduce flexibility within the licensing system, the Government would carry out its stated intention to introduce a new importers’

■; scheme, Mr Adams-Schneidei 11 said. :■ “A limited budget has beer '(established to be used to corHrect serious anomalies which larsie particularly where the ’(criterion of licence history is i|a major obstacle to the issue (of a licence to an established - firm,” he said. These could be dealt with as they arose and as they were brought to the notice of his department. “Another desirable step which will be taken in 197879 is to embark on a more (intensive examination of the (use of basic licences for a (selected group of items.” j Over the next year 10 item (codes would be reviewed in idepth. “The object is to ensure (that the licence-holders are (genuinely engaged in manufacturing or importing, that (proper use is being made of their licences, and that as far las possible there is a reasonably equitable spread of import licences among the firms concerned, and anomalies are corrected.” he said. The Minister said there would also be a revision of the present transfer policy of licence entitlements to ensure more effective trading. In particular, consideration would be given to the transferring and amalgamation of small value licences. “In addition the minimum value of basic licence entitlements under an item code will be increased to $5OO and the present exemption of $2O for private imports will be increased to $50,” he said. During the coming year the Department of Trade and Industry would explore ways of updating and improving the import-licensing schedule, the Minister said.