Import licence policy ‘firm’

Press, 12 July 1980, Page 6

Import licence policy ‘firm’

PA Auckland The Government will continue to use import licensing as an important implement in pursuing its import substitution policies and in developing New Zealand manufacturing industries, says the Minister of Trade and Industry (Mr AdamsSchneider).

He said yesterday that he did not subscribe to the view that New Zealand should dismantle the system of. import licensing -which had been used for 40 years. "I have no intention of letting efficient industries go to the wall for the sake of a theory,” he said in a speech to a National Party meeting. Mr Adams-Schneider said many thousands were employed in firms that would not have , got going had they not been started for a secure home market; ' "Any precipitate move to subject these industries to

the full force of international competition could do untold damage, far in excess of any immediate gain,” he said. But Mr Adams-Schneider said all sectors of the economy must work at maximum efficiency if the economy was to generate the exports and provide the opportunities for cost-effective import substitution, which was urgently needed. “Companies that produce at costs well in excess of their counterparts overseas act as a drag on the whole economy, and particularly on those which must compete in international markets,” he said. While making it clear the Government would not abandon import licensing. Mr Adams-Schneider said it would continue to introduce flexibility into import licensing administration to stimulate genuine competition and efficiency in industry.’