RELAXATION OF IMPORT RESTRICTIONS

Evening Star, Issue 23324, 21 July 1939, Page 10

RELAXATION OF IMPORT RESTRICTIONS

PREMIER'S ACCOUNT OF DISCUSSIONS

FINANCE MINISTER'S UNDERTAKING

[From Ouk Parliamentary Reporter.]

WELLINGTON, July 21

The indications are that there will bo some relaxation in the Government’s policy of import restrictions in the fiuure.

In a statement to-day .Mr Savage gave an outline of the discussions which have been taking place between Mr Nash and the British Government. These have covered the principles of the policy of the New Zealand Government in regulating imports, and its detailed application to imports from the United Kingdom. “ The British Ministers recognise that in the circumstances that existed in New Zealand last December, and which still exist, some effective measure for reducing the total imports into New Zealand below their recent abnormally high level was and is inevitable,” said Mr Savage. “ They do not raise objections in principle to the method which tho New Zealand Government has adopted, though they are conscious of the difficulties it has caused in individual cases.

Mr Nash has undertaken that the New Zealand Government will examine and do its best to meet representations by United Kingdom industries with regard to these cases. British Ministers welcomed this assurance. They appreciated also the fact, which was confirmed by Mr Nash, that the New Zealand Government’s intention is to administer the policy as favourably as possible in relation to United Kingdom interests. They informed Mr Nash that they were apprehensive as to the permanent effect on the United Kingdom export trade of a policy designed to meet a temporary difficulty in New Zealand. Recognising that the scale of restriction imposed in the present period was abnormal, Mr Nash, on behalf of the New Zealand Government, undertook that, as circumstances permit the New Zealand Government would do its utmost for relaxation of the restrictions to ensure a maximum expansion of trade between the United Kingdom and New Zealand, consistent with the maintenance of sound economic conditions in New Zealand and the Government’s obligations to existing industries,”

Mr Nash assured the British Ministers that it was not the intention of the New Zealand Government, to employ the import licensing policy to give protection to New Zealand industries against the import of United Kingdom goods on a scale which prevented, a full opportunity for reasonable competition. Mr Nash explained that difficulties arose in cases where the New Zealand Government had already incurred obligations by taking action to encourage the establishment of industries which,- in the opinion of his Government, required some measure of restriction of import to operate efficiently He undertook to investigate the matter fully on his return to New Zealand, and gave an assurance that, pending this investigation, such protection would not be extended to other industries.

“Mr Nash also agreed on behalf of the New Zealand Governmentt that the policy of licensing imports would not be used to foster uneconomic industries, and to assist them in determining what goods can be economically produced in New Zealand, they would invite the views of the United Kingdom industries concerned, and would take such views into account in reaching a decision. “ In cases where it is proposed to grant a limited number of licenses for the manufacture of a particular kind of goods, the Now. Zealand Government would give the United Kingdom interests the opportunity to put forward proposals for undertaking the manufacture.

“The British Ministers gladly took note of the above assurance.”