Exchange surcharge not illegal — Mr Rowling

Press, 15 June 1978, Page 6

Exchange surcharge not illegal — Mr Rowling

PA Wellington The Leader of the Opposition (Mr Rowling) yesterday denied that Labour’s proposed surcharge pn foreign exchange would be illegal. He was commenting on a statement by Mr E. E. Brill (Nat.. Kapiti) in Parliament on Tuesday that the surcharge would be illegal because it would break international agreements signed by both the Labour and National Governments. Mr Brill, who described the scheme as an elaborate hoax, said that it would provide the E.E.C., .Japan, Aus-

Itralia, and the United States [with a perfect excuse to raise tariffs against New Zealand, reduce quotas, and close their markets.

Mr Rowling said that the surcharge like a devaluation, 'would be an across-the-I board move affecting currency value. This was accepted I internationally as a legitimate Government activity. “Mr Brill demonstrates his [own ignorance of international trade matters when [he suggests that countries [might retaliate against New [ Zealand by raising tariffs on (New Zealand products,” said [Mr Rowling. “Such aselecti e move would be against

i G.A.T.T. rules and would definitely be illegal.” Mr Rowling said that the ! s rcharge was the best option available to raise much of the extra revenue which would enable a Labour Government to make much: larger income-tax reductions I than proposed in this year’s! 'Budget. | It would also encourage I 'restraint in the use of for-' ieign exchange.