IMPORT RESTRICTIONS

Dominion, Volume 37, Issue 279, 22 August 1944, Page 4

IMPORT RESTRICTIONS

During the course of a speech in Parliament last week Mr. McCombs (Labour, Lyttelton) made a reference to the polipy of restricting imports, and said: “Import control is here to stay as long as this Government stays in office.” Such a definite statement would not have been made without some knowledge of the Government’s intentions, but, if. it is correct, then it involves a departure from former official statements. In the Budget of 1939 it was stated that during the discussions which Mr. Nash had been engaged on in London it bad become clear that “a good deal of misunderstanding existed as to Government proposals concerning import selection.” The Budget continued: It was by no means generally appreciated that a considerable proportion of the present restrictions is solely for the purpose of reducing imports to the level of our ability to pay lor them. These economy restrictions are temporary, and they will be relaxed as the need for them passes. It was recognized at the time the restrictions were imposed that the purpose was to protect overseas reserves, which the Government’s policy had reduced to a dangerously low level. They were regarded, as the above quotation shows, as being of a temporary nature, and though their continuance as a war-emergency measure was to be expected, this statement by the member for Lyttelton is the first information made public that import restrictions now form a permanent -part of the Government’s policy. Such a declaration would have been expected from a member of the Ministry, but perhaps, like the question of the country quota, it prefers to let a private member make the. disclosure and then study the reactions before giving the official imprimatur. The system of controlling imports was, of course, represented at the time as a logical continuation of the Government’s policy, but the most authoritative'publication on economic policies within the Empire between 1918 and 1939, said: “It was the undesired and unforeseen consequences of New Zealand policy, not the triumphant fulfilment of a plan, which led to this result. . . . Exchange control had to come for the simple reason that there was insufficient exchange to meet New Zealand's obligations as a debtor and to satisfy her normal needs as a trader.” . . This system, which obviously constitutes a barrier to trade is not in harmony with the undertakings entered into in the lend-lcase agreement. It means that while this Government remains in office the trading firms will be able to import only what the authorities permit, and their freedom to judge for themselves the trend and character of the public demand will be rigidly limited. The perpetuation of import control certainly did not figure in the Labour programme at the. recent elections, and some official statement on the matter will be awaited with general interest.