IMPORT CONTROL PLAN

Dominion, Volume 32, Issue 100, 21 January 1939, Page 10

IMPORT CONTROL PLAN

“This Drastic Policy”

CRITICISM IN TRADE JOURNAL

The confusion in business circles that has resulted from the unusual silence of the Government in giving effect to its policy of import restrictions and exchange control, and the effect of that policy on trade and the manufacturing industry in New Zealand, are referred to in this month’s issue of the “New Zealand Draper,” the official organ of the New Zealand Federation of Drapers, Clothiers, and Boot Retailers. The article also issues a warning against “class” discrimination. “The new plan of the Government, with its embargoes, licences, permits, and other bureaucratic restrictions, is a significant and perhaps sinister factor in trade prospects for the year we have just entered,” says the article. Characterizing the regulations as a “bombshell” it goes on to say: "Even now the air is so full of dust and smoke from its detonation that a clear view of the future is impossible. It is sure to be some time before the position becomes clarified and the actual effect of this drastic policy can be estimated, and no one can forecast with accuracy whether the ultimate result will be detrimental, or just a matter of trade readjustment to adapt trading procedure to the new policy.” Referring to the confusion that has arisen, the writer observes, “neither the Government, the responsible Minister, Mr. Nash, nor the departmental authorities appear to have any definite' idea of procedure, and it is very difficult to get any clear explanation of the position. “Amazingly Silent.” “Contrary to usual practice when a new policy is being introduced our politicians are amazingly silent on what is to be done, and the impression is growing that they have as little idea of what is going to happen, as our traders themselves. Some orders are allowed to be filled without let or .hindrance, others are rationed with varying degrees of restrictions, while in some cases permits ta import certain lines have been refused altogether, and as may be imagined the confusion which has arisen makes trading activities a huge jig-saw puzzle which is going to take a long time before its thousands of pieces can be fitted together into a clear pattern, and enable business to function normally in the matter of securing supplies of goods for sale to our customers.

“Wheu first announced the sudden upheaval of trade barriers round New Zealand, and the institution of strict exchange clearing and control, was stated by the Government to have a dual objective: (1) To check the depletion of sterling funds in London, which were needed to meet State commitments there; (2) to initiate the new plan of increased production of manufactured goods here, by restricting or barring the entry of goods from overseas which compete with local products. Original Aims Lost Sight Of. “To neither of these aims could any legitimate objection be raised, if they were considered essential and necessary for our internal economy and the adjustment of trade balances with countries which only wanted to sell to us and take as little as possible in return. “But in the confusion which has arisen these original aims appear to have been lost sight of, and there are indications that behind the sudden and unexpected restrictions a very different motive may appear in the shape of differentiating between certain classes of goods, and also certain classes of customers.

“This may appear in the form of trying to draw a line between what may be regarded as ‘luxury’ goods, and those which are looked upon as ‘necessities.’ If such ‘class’ distinctions, which will be very difficult to define, are merely temporary restrictions till sterling balances in London have been adjusted, such self-denying ordinances may be regarded as similar to war-time restrictions and a temporary embarrassment which will soon disappear ; but if such a policy is intended as a set and permanent one it is going to mean a violent dislocation in trading conditions, and an interference with normal trading which will have far-reaching effects.

The Big “If.”

“It is a matter of urgent necessity that a clear and unequivocal statement of the real object and aims of the Government should be made without delay, otherwise normal trading conditions will become chaotic and intensify the very evils the Government appears to be endeavouring to avert. If its policy, as statßl, is to manufacture and market as many and as much locally-made goods as possible, our distributors and shopkeepers will co-operate cheerfully and willingly to assist that aim, but rash action in rushing ahead of local production can only result in dislocation of 'business and loss of trade.

“The rational approach to the new plan would be a policy of gradualness, tapering off imports (particularly from countries with little reciprocal trade) at a rate which would ensure local manufacturers being able to keep pace with the public demand. Goods which 'cannot be produced here should be allowed entry’ as soon as the sterling position in London has recovered Above all there should be more preference to goods from Britain in all cases where they cannot be produced here. This, we understand, is tlie Government’s declared intention, for. after all, Britain is our only worthwhile market for the staple exports on which so much of our national income and business prosperity depends.”

THREATENED WITH EXTINCTION

Motor-Cycle Business Refused Licences

Dominion Special Service. PALMERSTON N., January 20.

According to Mr. D. Collison, Palmerston North, holder of a string of New Zealand motor-cycle championships, his motor-cycle business in Palmerston North is threatened will) extinction unless his appeal against import restrictions is heeded.

Mr. Collison was among those who attended a meeting of Palmerston North importers today, and when discussion was brought round to receipt of licences to'import he said that his applications had been refused. He could not obtain a licence to import more motor-cycles

or even a pair of goggles or accessories from England. He knew also the position of a wholesale firm in Wellington which had been allowed only £5O worth of imports and a branch in Christchurch £136.

His own business had- been eslablisae’d in Palmerston North for eight yeat®, and there was at present ir staff of 11. Tlie meeting decided to assist Mr. Collison by bringing tlie matter to the attention of tlie conference of importers to lie held in Wellington next week.

Tlie manager of a stationery business said that his licence to import goods from England was granted tn full, but bi s needs from Australia were cut in half.

A voice: What’s ’the secret? Mr. W. 11. Brown : Having a j-matl business. I suppose. The manager of one of the main drapery stores in the city said that his firm’s application to import requisites from Canada had been granted, but the linos applied for had been reduced by 50 per cent.