The Evening Star WEDNESDAY, NOVEMBER 7, 1945. THE BARRED DOOR.

Evening Star, Issue 25634, 7 November 1945, Page 4

The Evening Star WEDNESDAY, NOVEMBER 7, 1945. THE BARRED DOOR.

A striking example of the facility with which New Zealand's Labour Government can utilise for an entirely different purpose restrictions originally imposed for another objective is afforded in the new schedule of import allocations for 1946 which the Minister of Custom's, Mr Nash, announced this week. Import restrictions were first introduced at the end of 1938 when the shrinkage of New Zealand's London funds gave cause for alarm, and it was indicated in official statements that tiie purpose of the restrictions was purely to conserve the Dominion's overseas financial position. A study of the latest schedule, at a time when the Reserve Bank's,holding of sterling funds is at its - highest peak, suggests that in the intervening seven years import control has been transferred to a gigantic protection for the secondary industries which have been developed during the period in which goodsfrom overseas have either been prohibited entry to this country, or have been in short' supply as a result of the war. It seems clear now that the Government proposes to continue to use the limitation of imports as a safeguard for local industries, additional to protective tariffs which have existed for a number of years. The extension of secondary industries to the fullest degree on an economic basis is a policy which can be wholeheartedly approved, but the elimination of all elements of competition with world markets is a procedure which cannot be contemplated without grave misgiving. With stocks of manufactured goods at the lowest level within living memory, additional imports at this stage would offer little threat to local industries. British manufacturers can derive little satisfaction from tlic new schedule, because there seems to be considerable justification for the remark contained in an article published yesterday that such relaxations as aro permitted havo been made " sparingly and grudgingly." It has been made abundantly clear in recant months that Britain has the strongest possible claim

i for Now Zealand assistance in _ enI deavouring to regain her lost position as an exporting nation of manufactured goods. Government spokesmen have paid lip service to the principle that New Zealand should do everything possible to help Britain in her present plight. In his statement accompanying the new schedule of allocations, Mr Nash said that, to the extent that the United Kingdom was in a position to supply our requirements, we would continue the policy of obtaining our needs from her to the maximum. The relatively slight relaxations permitted in the new allocations, however, do not suggest any marked intention of allowing more liberal purchases from and the Minister must have made his.state-' ■ment with his tongue firmly in his cheek. The policy of import control, together with buoyant markets for every pound of primary produce which this country can export, has built up New Zealand's London funds to a record level, but although Mr Nash admits that this position "gives grounds for much satisfaction," he is obviously reluctant to relax moro than nominally the complete control he has secured over overseas trade. By pursuing his present policy, the Minister gives satisfaction to no section of the community. Importers, who have had a very thin timo since the Government took control, find that they will have little more to offer their retailer customers, ■whose stockß are barer than ever before, and even manufacturers complain that they have not received the expected increase in allocations of raw materials. The British manufacturer cannot be blamed if he becomes impatient with this Government's refusal of entry for : his goods to a clamouring market, and the people of the United Kingdom would not,be unreasonable if, in the years, after the food shortage is overcome, 'they demanded sanctions against a dominion adopting such a dog-in-the-manger attitude. The Government's policy hoick dangers for this country's relations with its principal customer, and is one which cannot be supported.