“SPARING AND GRUDGING”

Evening Star, Issue 25633, 6 November 1945, Page 4

“SPARING AND GRUDGING”

NEW IMPORT ALLOCATIONS CITY TRADERS DISAPPOINTED

Although most importers were hoping, without a great deal of confidence, that a fairly generous relaxation of the import restrictions would follow the end of the war, those who have so far had an opportunity of inspecting the new schedule, which was announced yesterday, have come to the conclusion that their purchases overseas during the coming year will he only slightly increased. The items marked D on the schedule as totally prohibited are still by far the most . numerous, and the outlook for businesses trading largely in those classes of commodities is gloomy. ; - Import restrictions were first imposed at the end of 1938, when the position of New Zealand’s holding of sterling exchange gave.cause for anxiety. The exchange position is now more buoyant than ever before,, but it is apparent that the Government proposes to maintain the closest possible control over all trading transactions overseas to prevent any serious diminution of overseas funds. LOAN REPAYMENTS.

Commenting on the new schedule, one city importer said that although the repayment of £23,000,000 of New Zealand debts held in London would make a substantial “ hole ” in the present sterling exchange holding of more than £70,000,000, it had been hoped that the Government would permit freer importations of goods from Britain, particularly as . that . country was desperately anxious to regain its former export trade. The new schedule would take a great deal of close study, because it set out the new allocation in relation to different years for different items, and it would he extremely difficult to form a reliable estimate offhand of the percentages in relation to the last year of free trading. The impression to jbe gained, however, was that relaxations had been made sparingly and grudgingly. It was pointed out that although in certain classes of goods a full

restoration of the 1938 level of imports was provided for, such

quantities of imports would do nothing towards taking up the slapk of severe shortages in those goods caused by the initial restrictions and subsequent war-time scarcities. In 1938, goods had been comirfg in to maintain markets fully supplied, but stocks are now bare, and the new allocations will not go far towards satisfying the accumulated demand.

Another aspect referred to was that overseas prices for gdods have risen substantially during the war years, and the restoration even of 100 per cent, of the value of 1938 imports will result in only a percentage of the" goods being available on a quantitative basis. Freight charges also have to be met" out of the allocation of funds, and they have risen to a considerable extent. MAINTAINING FUNDS.

One city man drew attention to the statement by the Minister of Customs (the Hon. W. Nash) that it would be necessary to draw heavily on the sterling funds in London for overseas debts and essential imports. He said this might be .interpreted as meaning ;that the Government intended to conserve the overseas funds as much as possible to enable the repayment of more London loans falling due within the next Ifew years. It did not appear that the imports permitted under the new. schedule would cause any diminution in the London funds, whicn had risen steadily during the war years, and although the Minister had hinted at large expenditures for the renewal of machinery and motor transport, it appeared to be the policy to keep the London funds up to the highest level for subsequent loan transactions.

A study of the new schedule, which occupies 13 pages, comprising nearly 1,000 items, indicates the extent to which New Zealand manufacturers have developed since import restrictions first came into force. About 340 commodities are totally prohibited. In the days of free imports most of these entered freely, with only the protection oi tariffs ,to assist local industries. It is now evidently considered by the authorities that local production is. adequate to supply all the Dominion’s needs.