Removal of import licences discussed

Press, 11 April 1984, Page 8

Removal of import licences discussed

PA Wellington The Government and the Manufacturers’ Federation reached an agreement yesterday on phasing out import licensing and replacing it with tariff-based protection. The Minister of Trade and Industry, Mr Templeton, and the federation’s president, Mr Earl Richardson, said they envisaged that the changes would take place over about five years. Messrs Templeton and Richardson will begin national discussions of the changes with regional manufacturing groups later this week. The federation seeks their approval.

The Manufacturers’ Federation said it was planned that licences, which cover about 23 per cent of imports, would be increased gradually by tendering, followed by a period of

licence on demand. During the increasing licence allocation the adequacy of the level of existing tariffs would be determined by an agreed formula. At a joint press conference with the Minister. Mr Richardson said there would be casualties. “There would be casualties in any event if we did this or not. In my view the way technology is developing and trading relationships with Australia are developing, there will be casualties. “I think there are going to be some ‘ticks’ too. There will be some industries which will strengthen,” he said. However, he believed no conscientious manufacturer would be disadvantaged. Mr Richardson said industry realised that “if internationally we have got to

move away from quantitative controls in most industries, the sooner we get to sensible tariffs which we can live under, the better.

“The longer you put it off. the longer you refuse to face it, the worse our problems will be, particularly under C.E.R. “If we ask the Government for such a measure of protection that we do not have to be efficient, we are, by default, going to give our market to Australia because we are going to be inefficient and they are just going to move in and take it away." Mr Richardson said manufacturers had asked the Government to show good faith by removing “disincentives” such as tax on machinery, and their depreciation situation compared with that of their trading partners.