IMPORT CONTROL

Evening Post, Volume CXXXIX, Issue 133, 7 June 1945, Page 6

IMPORT CONTROL

Sir,—No doubt Mr. James Thorn is the best judge of his own ethics, but I would point out that his latest attack on Mr. Holland is by no means the first that the Labour Party has made since the Leader of the Opposition went abroad. ' He had hardly left the country before the Labour Party violently assailed him in a pamphlet of which thousands were distributed throughout New Zealand. The public can judge for themselves whether such tactics can be condoned.

As to import controls, I pointed out in my first letter that the Government had consistently denied that import control was designed to assist manufacturers here, and that Mr. Thorn was expressing views diametrically ■ opposed to those of the author of the scheme, Mr. Nash. In his latest letter, Mr Thorn now swings back to the party line and says that import controls are needed to conserve sterling funds. Let us have a frank statement on the position; will Mr. Thorn answer this straight question: Does the Labour Government propose, as a matter of deliberate policy, to retain import controls for the purpose of protecting New Zealand industry, or not? Can we get agreement on that point? Mr. Thorn says that the 1.L.0. resolution I quoted' could be used in support of New Zealand's import control policy. If that is so, words have lost their meaning. ■' : As to loans falling due in Britain, would Mr. Thorn have us believe that they are all to be repaid? Are none of them to be converted? And if it is so vitally necessary to conserve sterling funds—and I believe such to be the case, though import control is not the way to do the job—then why does the Government propose to waste sterling funds by buying out the British and Australian shares in the Bank of New Zealand?—l am. etc.. FAIR PLAY.

Sir,—Mr. James Thorn's attempt to justify or explain away the policy of import control appears to me to be a process of attempting to make the best of a bad job. . He advances the fallacy., or at least half-truth, that import control was imposed to conserve and build up our sterling funds. The conditions that led' to exchange and import control were brought about entirely by Government action. By debasing the internal currency through the issue of Reserve Bank credits, the demand for sterling funds became excessive. The financial and economic policy adopted was very similar to that operating in Nazi Germany, and like actions bring like results. Fortunately for New Zealand the British Government has, from time to time, been very forbearing, or we may before now have experienced the real disaster that a continuance of the policy will inevitably bring—if not disaster, then to the conditions of a totalitarian State, and that surely would be disaster enough. We know that we had times of poverty amidst comparative plenty, and to put matters right the Government, through import control, did away with the plenty. Had Mr. Thorn and his colleagues been better acquainted with the economic laws of which Mr. R. A. Gosse speaks, they might have found a way to do away with the poverty and yet retain the plenty. The only reason they have not done so would appear to be that such a policy would conflict with, and endanger, their desire for a National Socialistic, or totalitarian State.

Let us assume, however, that as a temporary expedient there was some .justification for import control. Will Mr. Thorn examine just what it has and is costing the people of New Zealand? • Hundreds and perhaps thousands of civil servants are required to administer it, which accounts in considerable measure for high taxation. Imported goods being in snort supply, one of the economic laws which Mr. Thorn passes on in a very irresponsible manner operates and tends to make all goods higher in price. Incidentally, such higher prices mean higher sales tax to augment the insatiable requirements of the Minister of Finance.

Import control, is a necessity to any Government that is determined on full and absolute control, but it is not a necessity to New Zealand. If democracy is to be regained in New Zealand, then the people should insist on the earliest possible return to freedom of imports. This would require action towards a bettor balance between internal currency and sterling funds. A first step in this direction I suggest, could be made by liquidating something like £20,000,000 of Reserve Bank credit through the sale of Government houses to private, owners. The utmost. encouragement to every avenue of economic production, together with allocation of sterling funds by the trading banks, would before long, right the conditions that do appear to necessitate Government dictation of, what people should buy. Let me in conclusion again remind Mr Thorn that these conditions were deliberately brought about by Government policy.—l am, etc..

E. R. TOOP

ANSWERS TO CORRESPONDENTS. "DiiiiKiTOiis."—The complnlnt is heing brought lei ilie attention of the Department. "World Citizen."— Issuo too wide for diseus-"Ex-Miiiei-."—The Mining • Controller has al-