Import Policy May Lead To Unemployment

Greymouth Evening Star, 6 April 1948, Page 3

Import Policy May Lead To Unemployment

WELLINGTON, April 5. Only immediate action by the Gov-ernment-could prevent'a serious dislocation of production, employment, and supply in the latter half 9f 1948 and early 1949, said a spokesman of the New Zealand Manufacturers’ Federation today. He said the main concern of manufacturers in New Zealand today was the continued difficulty of getting import licences for raw materials. After a close examination of the position relating to raw. material import licences so far issued for' 1948, the New Zealand Manufacturers’ Federation was confronted with a series of questions which only the Govenment could answer, said the spokesman. Appeals for licences to meet urgent requirements had been practically ignored, and the attitude of the authorities to requests demonstrated a complete disregard for the manufacturers’ obligation to safeguard the employment of his staff. One survey covering a representative group of manufdctui’ing industries whose total licences in 1947 were £2,935,066 showed that for 1948 only £1,560,612 had been issued to these same firms. “Crisis is Here

“The federation is satisfied that licences issued for factory raw materials for 1948 are totally inadequate to maintain production and employment,” he said. “Our survey and information indicate clearly that the crisis anticipated by the federation's here. It is too late even now to repair the whole of the damage, but immediate action by the Government can to some extent avoid a complete breakdown. Manufacturers are daily having to turn down offers of goods from the United Kingdom because'we have no import licence. It does not require the assistance of an overseas supply mission to obtain many of the goods’, it requires only that the Customs Department will issue the necessary import licence, but that licence must be issued while these goods are offering and in sufficient time for shipment to New Zealand before we have had to retrench staff or otherwise reduce or taper off production, and before the expiry of the licence period.

“As a federation we are appreciative of the information so fai supplied to us by Mr Nordmeyer, but to safeguard the maintenance of full production and full employment we must be sure that as a group we are not being asked to accept more than our rela 7 five share of any necessary reduction. We ask these questions:— Federation’s Questions “1. What is the estimated value of New Zealand exports for the 1948 licensing period? “2. What amount of overseas funds is being allocated this year respectively for debt services, debt repayment, Government buying, private imports (£95,000,000, the Minister has announced), and miscellaneous contingencies. . “3. What were the equivalent amounts spent (or allocated if actual expenditure is not yet available) under these groupings for 1947? “4. What percentage of 1947 licences will be allowed to manufacturers for 1948, and when will these be issued? “New Zealand industry cannot function without continuity of the supply of raw materials. Manufacturers cannot order the necessary raw materials without the issue of import licences by the New Zealand Government. If these licences continue to be withheld, the responsibility for the resultant unemployment and dislocation of production in certain industries must assuredly fall upon the Government, in whose hands rests the power to prevent it.”