Import controls

Press, 26 April 1984, Page 20

Import controls

Sir,—The huge and increasing overseas borrowing now necessary to pay interest on previous loans will never be cured by opening wide New Zealand so that imports replace local manufactured goods. Unrestricted imports do mean no work except on the farms. Who, in the resulting depression, will pay the social welfare bill for National Superannuation, unemployment, health and welfare? The farmers? Not if they can continue their present well known tax evasion. Why farming leaders advocate free trade is hard to follow. Sensible, quantitative control means, and I emphasise sensible, jobs for all and rising standards of living. — Yours, etc.,

L. G. MOREL. April 21, 1984.

Sir,—lf an expansionary financial policy were followed, more would be consumed; so there would be more jobs, although the workers who benefited might all be overseas. If this were combined with import restrictions, there would be more jobs for New Zealanders; but other countries would be hurt and might take retaliatory action. If an expansionary financial policy were applied in combination with a trading system based on bilateral and multilateral credit exchanges, other countries could sell us more of their goods, but only on the condition that they bought more of ours. This is the only fair way to achieve full employment, as there would be more Jobs for New Zealanders whether or not other countries wanted to trade with us. — Yours, etc., J. C. RING. April 21, 1984.

Sir,—Allan Wright’s claim that New Zealand’s balance-of-pay-ments problem is “caused by socialist economic meddling” is untrue. His further claim that “in a free trade situation companies and individuals can only import what they can pay for,” is wishful thinking. The International Monetary Fund, of which Russia is not a member, has been forced to accept in recent years that import controls may be the only way some countries can reduce their debts. Those who take the discredited nineteenth century view that the private enterprise system is a magical mechanism which functions best without government management are communism’s most valuable allies. For, like a car without brakes, private enter-

prise without the right government controls can be relied upon to crash. When circumstances are favourable tariffs are preferable to import controls, but New Zealand’s balance-of-payments deficits are too large to be corrected by either devaluations or tariffs. — Yours, etc.,

MARK D. SADLER. April 23, 1984.

Sir, — I take exception to J. C. Glass and his attitude towards the tyre industry (April 19). How anyone can compare prices of tyres produced in this country with those in the rest of the world is beyond me as the variance of tyre prices in' other countries shows that there is no standard price. One thing is clear — tyres produced in Third World countries are certainly cheaper, but their quality is nowhere near as good, and the living standards are far below those enjoyed by all workers in this country. Obviously Mr Glass would sooner see workers in this industry thrown on the scrap heap and complete importation take over. If he knew anything about the tyre industry, he would know that it has already been subject to an Industry Development Commission study, and is already subject to cheap imports from countries such as China. — Yours, etc.,

M. FREEMAN. April 19, 1984.

Sir,—J. C. Glass seems to be looking through green eyes. Quality and quantity is New Zealand’s answer to controls. My job at the local new tyre factory is well paid because of my skill and ability to work hard non-stop each shift. Perhaps the steady stream of American tyre experts studying our quality and quantity systems of production are only holidaying at our Christchurch factory but I doubt it. We study and pull to pieces all imported tyres, and so far have no worries. Over the last 10 years, efforts and pride have been rewarded with security and overtime. Overseas experts tell us we should be proud of our world ranking in quality and quantity, in that order. A good example is bicycle tyres. Cheap imports have misplaced New Zealand workers, and it is now impossible to get a quality tyre in some sizes. — Yours, etc., GRAHAM KENNETT. April 19, 1984.

Sir, — J. C. Glass advocates a free market economy. Considering the economy of scale available to manufacturers and producers in this country, I would challenge Mr Glass to produce, say, half a dozen consumer items that could not be purchased more cheaply by importation. To extend the philosophy Mr Glass advocates to its final conclusion would result in there being a handful of fanners and multinational companies operating, with the rest of us being on the dole. The whole purpose of manufacturing one’s own consumer commodities relates to the value added, which in turn becomes wages and profits. When the day arrives that this is not being achieved and wages and profits have been replaced by importation on a mass scale, the scenario depicted above of long dole queues will be a fact. — Yours, etc.,

R. BROTT, Secretary, Canterbury Rubber Workers’ Union. April 19, 1984.