IMPORT CUTS

Evening Post, Volume CXXVIII, Issue 13, 15 July 1939, Page 24

IMPORT CUTS

ACCOUNTANTS' DEBATE

'"That the New Zealand Import Restrictions are Justifiable in the Light of Present-day Events," was the subject of an interesting debate recently at the Accountants' Chambers by Messrs. N. G. Foley (leader), M. J. Osborne, and F. H. Renouf (representing the Wellington Accountant Students' Society), who took the affirmative side, and Messrs. J. T. Cook (leader), G. D. Stewart, and R. C. Bradshaw (representing the Wellington branch of the New Zealand Society of Accountants), who took the negative.

■ The supporters of the motion argued that the action taken by the Government was a necessary experiment in planned economy. The term 'Restriction" was not correct, as the Government was concerned mainly with selection of imports on a basis to assure the greatest practicable amount of purchasing in Great Britain. It had to be realised that the market for New Zealand's produce in Great Britain was declining because of the progressive agricultural policy of the Mother Country and the steady decline of population there. As a precaution against dislocations of trade during a great war, it was necessary for New Zealand to have a balanced economy. Therefore, the Government's measures, which were encouraging the development and expansion of local manufacturing industries, were definitely conducive to the national welfare.

The opponents of the motion quoted figures to support their argument that the sudden scheme of import restrictions had proved unjustifiable. As an alternative it was urged that the exchange rate should be adjusted to its real level. The control of sterling funds by the Reserve Bank should be in conjunction with the trading banks, and the Reserve Bank should be freed from political control. The interest rate in New Zealand should be allowed to run free instead of being held at an artificially low level. Government spending, particularly upon social services and Public Works, should be reduced. A tarif* board, free from political control, should be established.

It was submitted that the alternative scheme would have the effect of stimulating exports, discouraging imports, and the building up of sterling funds. The import of capital would be encouraged. Secondary industries would be protected to a reasonable degree, national production would be increased, and confidence in the ability of New Zealand to meet its financial obligations would be restored.

As the basic farming industry was the foundation of New Zealand's economic welfare, it was vitally important to have the industry safeguarded, but the present scheme of import restrictions and the artificial pegging of the exchange rate below its real level were detrimental to the farming industry. In a helpful review of the debate, the judge, Mr. J. S. Barton, summed up in favour of the Wellington branch team. The basis of marking comprised matter, method, delivery, teamwork, and efficiency in reply.