CUSTOMS AND EXCHANGE

Greymouth Evening Star, 13 March 1933, Page 3

CUSTOMS AND EXCHANGE

MR. COATES’S STATEMENT

[SPECIAL TO ‘'STAB.”]

WELLINGTON, March 11

A statement that there was no justification for the feeling of tainty as to the possible modifications in the customs tariff and exchange rate, was made by the Minister of Finance, to-day, when commenting on an allegation which had been made in certain quarters that importers and business men were holding orders in suspense, owing to possible changes in the tariff and exchange rate. “There is. at present, no justification for uncertainty in regard to either of these matters." said Mr. Coates. "There is no reason why trade should not. proceed normally, without any apprehension oi changes that would pi ejudice business. So far as the Customs tariff is concerned, it. is true that an inquiry is about to be put in hand. We are already in touch with the United Kingdom in this connection, and the personnel ami order of reference of the commission will be announced at an early date, but in the meantime, we cannot, do more than hold the inquiry, and formulate recommendations. No change in the Customs tarills, except, of course, where there are. existing powers vested in the Government, can be made except, by Parliament, and no session is in prospect for several months. The Government will lose no time in bringing before the House the recommenadtions that result from the inquiry, but careful investigation is first required, and as I have said, it is obviously impossible to make any change in the immediate future. “Similarly, there is no reason, whatever, for uncertainty in regard to the exchange rate. It. is agreed by all that stability is most, essential, and while export prices remain where they are. there will lie no reduction in the rate. That can be taken as settled. “11. Will be appreciated, of course, that customs rales and exchange rate are both matters on which it. is not

possible to give advance notice of pending changes. Such notice in respect. to Customs would have, the effect ol disturbing trade, and if given concerning exchange rates, would lead to exchange speculations. It. was for this reason that the recent adjustment, in the exchange rate had to be put into effect quickly. The result may be embarrassing for some traders, and we quite appreciate their difficulties, hut it would have been still more disturbing to have notified the change to take effect at some subsequent date. Obviously, no formal notice in advance of changes can be promised. - However, I have said enough to show that there are. no grounds whatever for fear of early changes, either in the tariff or in the exchange rate."