IMPORTS SELECTION

Evening Star, Issue 23726, 6 November 1940, Page 12

IMPORTS SELECTION

MINISTER JUSTIFIES EXCHANGE CONTROL MEETING HEAVY ” INVISIBLE " ITEMS [Per Unu-ed Press Association.] AUCKLaAO, November 5. Charges totalling over .UHo,',iUU.UUD on New /wiiiumrs Stirling runus lor tuo Hi monies outlet! on ix-prctnoer ou tins year, quite apart mini tuose tide to tue eioveinment ueot services ami Hie country's imports, were itemised by tnc Minister of finance, Air ixash, m addressing a Junclieou meeting of tlio New Zealand Institute of ijiusiuess executives to-day. Alter, outlining tne reasons lor too introduction oi exchange control and import selection, the .ninistc-r gate details of some of the standing i-iiarges to lie met before tiu-re could lie tlciernmiod tho amount for wliu-u import licenses could be gra ;il t-tl. Air fSa.sli said Hit- country was considered to require at least PIH.UIin.IHH) a vear to meet the so-called ” invis-

ible ” items, line startling thing was that the figure of £12.000,000 was nothing like the total. “ I. was astonished.” he said, “at the other amounts that this country has to moot because of the requests and ordinary investments of the people

Thu Afinister said that for the 21 months ended on September 30 the permits granted for remittances from New Zealand for items other than imports ami Government debt services and similar charges came to over £25,000,000. Interest on the local body debt was just under £2,000,000, repayment of local body debt accounted for some £3,000.000, the United Kingdom having asked for the repayment of these debts as they became duo during the war Interest and dividends to private persons took between £3,1)00,000 and £4,000,000, and repayments of debts due involved slightly less than £2,000,000, Mr Nash said. Legacies amounted to nearly £1,000,000, capital withdrawn by persons emigrating was £600,000, the earnings of overseas firms fell just short of £2,500,000, and the overseas expenses of New Zealand firms took about £1,300,000. Royalties, commissions and insurances absorbed nearly another £1,000,000, and donations and similar remittances, including those of a charitable and religious nature, were about £1,000,000. Films and other entertainments accounted for a sum that was not less than £500,000, and travellers’ remittances were £1,600,009, Another item that might run to large figures was contributions to the troops overseas. There had also been £IOO,OOO for the relief of distress in London’s bombed areas and a similar amount for the purchase of fighter planes for the Royal Air Force.

11 Every time wo are generous it restricts the amount of goods we can bring into the country,” Mr Nash said, amid laughter. He added that he was very happy to see people generous, but it was a fact that such gifts meant a limitation of imports. “Wo have provided every penny required to meet Now Zealand’s commitments. Money made available by tbe banks in the middle of last year has already been repaid, as lias £2,000,000 in connection with short-term debts.”

Mr Nash said that in addition to the “ invisible ” drain on sterling, the Government had also received some 11 invisible ” items, and he thought that under this heading something like £5,000,000 could be added to the value of exports. If the proceeds of the sale of exports and the invisible receipts were added together, and from their sum were deducted the items he had mentioned, plus the Government debt services, the amount left would be that available for imports. PREFERENCE POLICY. The Government’s policy concerning the order of preferences fixed for various classes of imports was stated by Mr Nash. He also said that the United Kingdom was consulted before fresh secondary industries were established. So far as the defence of New Zealand is concerned, ail tho money required for imports of this nature is tho first charge and is provided at once,” the Minister said. Next came foods that, could not bo produced in tho Dominion, ami medicines, and after them the preference was for goods necessary to maintain primary production. The next item included raw materials and plant for secondary industries.

Mr Nash said that, while the last word was with Now Zealand, the advice of the United Kingdom was sought whether it could help in establishing an industry and also as to what reasons there might be for not establishing it. The degree to which preference in trade was being given to the United Kingdom was emphasised by Mr Nash. Ho said, for example, that by buying table china from a certain country other than Britain it would be possible to obtain twice as much for the money as from the United Kingdom, but the Government’s answer was, “ We’re buying from the United Kingdom.” Mr Nash said be know there bad been hardships inflicted on some very fine people and firms by import control. Regrettably this could not be avoided and arrangements had been made for 1941 imports for every pound that it could be seen would be available.