Surcharge on overseas funds

Press, 5 July 1978, Page 20

Surcharge on overseas funds

Sir, — With reference to your comment (July 1) about my missing the point in your editorial, “Surcharge on overseas funds,” I do not think Labour’s measures would exclude more imports but merely make the less essential imports that much dearer. Surely no nation could object to a country with record unemployment and overseas debt, trying to balance its books in this way. The end result, which is the easing of imports, is no different under this system. than reducing imports by deflation, resulting in reduced demand through recession and unemployment, which is International Monetary Fund policy, applied in New Zealand these last few years. The Labour scheme cuts demand on non-essens tial imports through surcharge. This policy would still allow New Zealanders to produce for each other to the full, which is ideal, with our exports merely paying

for imports. If the world system really wants world trade to flow, it will have to penalise the over-exported nations. — Yours, etc., J. SHARP. July 1, 1978.