IMPORT CONTROL

Evening Star, Issue 23444, 8 December 1939, Page 11

IMPORT CONTROL

STERLING ALLOCATIONS DISCUSSED

AUTOMATIC AVAILABILITY URGED [Per United Pkess Association.] WELLINGTON, December 7. The offer of fullest co-operation with the Government and whole-hearted support of the Mother Country in the prosecution of the war was reaffirmed at the annual conference of the New Zealand Manufacturers’ Federation, which was opened in Wellington yesterday and was concluded to-day. Mr H. W. _ Shove (Auckland) was elected president of the federation and Mr J. Abel was rc-elected treasurer. Import control and its administration and sterling allocations were discussed, and the following motion was carried:— “ That this conference represents to the Government the grave anxiety of manufacturers regarding the immediate supplies of the materials necessary to keep their factories in production and their workers in employment; that it represents also the necessity for reserving for the manufacturing industries the utmost possible amount of sterling exchange available so that the best use may be made thereof in the interests of the Dominion as a whole. Relying upon the assurance of the Government that import licenses would be available as required, many manufacturers have expanded their plants considerably, only to find import licenses for materials for the first half next year are to t be based on the amounts imported for the corresponding period of 1938, which was a time when manufacturing in New Zealand was not at full production. The difficulties thus created are accentuated by the fact that, as licenses are granted on value, and not on quantities, the increase in overseas prices will further restrict the volume of materials actually available to the' manufacturers. To - some extent this may be offset by supplementary allocations, which, it is understood, are to be out of the additional sterling funds now estimated to be available. Nevertheless, this conference desires to impress upon the Government that, in view of the increased production required from the manufacturers because of the restriction on imported manufactured goods, it is obvious that the volume of materials necessary to enable the manufacturers to fulfil these requirements must be substantially greater than the volume used in

“ With regard to sterling obligations, this conference wishes to impress on the Government the necessity for arranging that sterling exchange shall bo made automatically available when required in respect of licenses granted so as to restore the overseas credit ot the manufacturing industries of the Dominion and enable the manufacturers to take advantage of the most favourable market conditions when purchasing their requirements.” A motion urging the Government to curtail expenditure was carried i Q the following terms “ That in view of the shortage of overseas funds necessary for the supply of--matarialsfortheu aoo f manufacturers, the conference views with, concern the continuation of the Government’s policy of heavy public works buildings and other expenditure involving a serious drain of sterling funds, and considers that immediate steps should be taken to curtail expenditure.”