Govt increases import licences by 25 per cent

Press, 3 April 1980, Page 2

Govt increases import licences by 25 per cent

PA Wellington Basic import licence allocations of 125 per cent of 1979-80 levels were announced yesterday by the Minister of; Trade, .and Industry (Mr Adams-Schnei-der) when he released the < 1980-81 schedule. This should allow for current and anticipated rises in import-prices, he said. “Importers should thus be able to bring into the country at least as many goods as in the current year, an achievement which would be in line with the Government’s policy of ensuring stability in the-current difficult international economic situation,”' ‘Mr AdamsSchneider said. The 1980-81 basic allocation of 125 per cent will apply to both consumer and non-consumer goods. But for consumer goods 'there will be no provision beyond basics except where anomalies are proved to exist or there are special circumstances.

Mr Adams-Schneider said importers should, for example, take into account that the Government had announced that- additional licences for garments would be available in the 1980-81 licensing year under the tendering scheme. A further announcement will be made about tendering for other consumer goods licences. The Government has increased the minimum value of a basic licence to $750 and the flexible transfer policy will be continued. Items amounting to more than $lOO million will be exempt from licensing from Julyl. They include weighing machinery, certain agricultural and horticultural equipment, mbulding boxes, spray guns, cutlery, mechanical clippers, butter packing and wrapping machines.

Substantial items of capital equipment, where there is no domestic manufacture, are also included. -

A . further small group of exemptions is intended to eliminate what the Minister described as anomalous licensing situations. These include non-con-iferbus wood, tampons, floor coverings made of. plaited

materials, newspapers, journals and periodicals, antiques more than 100 years old, cellulose tape, and: magnesium stearate B.P. '* Mr Adams-Schneider said it was unlikely that the exemption of a number of items would lead to an abrupt rise in imports, as most of the items had been liberally treated under recent import licensing policies.

“New Zealand manufacturers may be assured that their access to all reasonable supplies of raw materials, plant, and componentry will again be fully, recognised in the policies to be followed in 1980-81, especially where there is no suitable domestic alternative,” Mr AdamsSchneider said.

Policies for spare parts would continue to be interpreted liberally, especially for existing plant and equipment. ::

If new importers could demonstrate competitive sourcing so as to benefit consumers, their requirements might also be met. “I wish to remind the commercial community, however, that spare parts are not to be imported. in the form of complete c.k.d. packs,” the Minister said. / “This sort of practice will 0..1y lead to recpntrol br stricter control, which is in nobody’s interests. . “A further element of continuity will -.be provided with the policies, for motor vehicles, both unassembled and built-up. The rolling replacement scheme will continue for unassembled vehicles, and traditional importers of built-up vehicles will receive the general 1980-81 allocation of 125 per cent. Motor, vehicle spare parts licences will also continue to be issued on a rolling replacement basis.”

Mr Adams-Schrfeider said he had received representations during the r last year for an increase in the pace o the review of item codes.

“While I am sympathetic to the concept of such reviews, I will first wish to be convinced of their utility in terms of results obtained, benefit to the community as a whole, and the staff fac< ilities available for their efficient administration, before making decisions on any significant extension of the programme,” he Said. ’ The restructuring, of the

second half of the licensing schedule had handicapped the Government in its choice of items for the 1980-81 review. programme, but the following goods had been selected for review: other sugar,; and sugar confectionery, ‘ cocoa etc; including chocolate confectionery, cast, rolled, drawn or blown glass, etc; electric lighting glassware, radio broadcast receivers, spare and service parts, and accessories for cycles.

■Mr Adams-Schneider said the usual procedures would be followed — initially 50 per cent allocations would be granted with the balance of entitlement to follow once the department was satisified about the legitimacy of previous licence usage. The increase in import allocations for 1980-81, as announced by the Minister was not as generous as it first appeared, said a Christchurch economist'last evening.

Professor R. Manning said that inflation and the devaluation of the New Zealand dollar would account for most, if not all, of the 25 per cent increase in import allocations. • The inflation rate, in countries from which New Zealand imported goods / was about 10 per cent, while the blew Zealand dollar had devalued about 1.5 per cent, he said. ■

“The increased allocation may look : generous at first, but when you take these two factors into account, it is probably not as generous as it seems,” Professor Manning said. ■