IMPORTS CONTROL

Evening Post, Volume CXXIX, Issue 63, 14 March 1940, Page 7

IMPORTS CONTROL

EASEMENT URGED

IRONMASTERS 7 REPORT

Modification of the import licensing system is urged by the annual report of the New Zealand Federated Ironmasters' Industrial Association of Employers, presented to the meeting at Wellington yesterday. Another year's experience of the system in operation, the report declared, made it patent that modification was necessary.

"With each succeeding licensing period the screw is tightened up another few turns and it is impossible for business executives to plan otherwise than from hand to mouth," continued the report.

The difficulties surrounding the import of essential material and plant militated against any -form of longrange planning for the development of local manufacturing. Machine tools were practically unprocurable in England and very long deliveries were quoted by American manufacturers. This was largely a direct result of the outbreak of war in September, as also were the restrictions on the purchasing of dollar funds to provide for purchases- from the United States of America.

There was still an insistent demand for imported goods which could not be satisfied. The expansion of local credit which was not supported by increased local production had, in fact, inflated the local currency without increasing New Zealand funds abroad. This system called for urgent attention. In other words. New Zealand must face up to facts and learn to live within its true income. Drastic economies in public expenditure were necessary in order to free such funds as were available to stimulate production for export and to provide for war expenses. "There seems every reason to expect that during the year we have just entered upon employers of New Zealand generally will experience difficulties," the report added. The recruiting of many thousands of men for war service meant a serious depletion of the labour force by the withdrawal of young, vigorous men of the best type. There would be difficulties in securing labour to replace these young men, there would be difficulties arising over the apprentice question, the proportion of junior workers, and probably the necessity to substitute female workers for male workers where that was possible. In order to overcome difficulties such as these, the Minister of Labour had set up an Emergency Industrial Council to advise him.