Extra import licences to total $430M

Press, 15 November 1984, Page 3

Extra import licences to total $430M

PA Hamilton Additional import licences totalling 5430 million are expected to be issued over .the next two months, the Minister of Trade and Industry, Mr, Caygill, said yesterday. The licences will be part of the Government’s plan to open up protected sectors of. industry to imports of up to 10 per cent of the estimated domestic market for manufactured goods, although goods covered by industry development plans will be exempt. Mr Caygill told the Waikato Manufacturers' Association that although ?430 million was a significant amount of extra access for imports, he did not believe it would all be used. This was because the new access had been’set regardless of the demand for imports of specific goods, and licences for such things as beer, soft drinks, ice-cream, and bread would not be used. But there were also quite substantial licences for pro-

ducts which had previously faced little import competition. These would rectify one of the. worst effects of import licensing — its tendency to block out the effects of international competition for some industries. Mr Caygill said that although the Budget contained few direct benefits for manufacturers, and no handouts, it offered more useful long-term economic

management based on sound principles and predictable policies. This meant a consistent approach to economic management; a willingness ,to tackle the structural problems of the high deficit; a firm commitment-to cutting unemployment; and a return to real economic growth. The Government would curtail inflationarypressures by- reviewing, the Commerce Act to promote competition between companies, and by ridding New Zealand of the tendency towards a “cost-plus” economy. “If it comes to the Government’s attention that excessive price increases have been taken by manufacturers, we will not hesitate to provide for increased, competition from imports,” said Mr Caygill. The Government could do it by issuing more import licences or by cutting tariffs, dr both. The success or failure of a move to minimum price control depended heavily on the response of manufacturers, he said.