Import Control Limits Exchange Cut Benefits

Greymouth Evening Star, 24 August 1948, Page 5

Import Control Limits Exchange Cut Benefits

(P.A.) WELLINGTON, This Day. The amount of benefit that would be derived from the abolition of the 25 per cent exchange on Britain would depend on the import' licences available, said the president of the United Kingdom Manufacturers’ and New Zealand Representatives' Association, Mr A. Wyness, at the annual meeting this afternoon. The association, he' said, had always considered the imposition of the 25 per cent exchange an unwarranted penalty against the United Kingdom manufacturers. Its sudden and complete abolition would have varied effects, and. until these were assessed, the full benefit or otherwise could not be gauged. “The Minister of Finance is reported as saying that it would benefit the 'Mother Country in that her commodities would be available to the New Zealand public at a reduced price,” said Mr Wyness. “In the next breath he said that there is still import control to offset any effect that lower prices might have and that the unused portions of the existing import licences would be reduced by 20 per cent. What Assistance? “If the next period licences . are issued on this basis, what added assistance will be given to the United Kingdom • export drive? The Minister informed recently

that over £122,000,000 worth of import licences had been granted as at the end of June of this year. “I suggest that in view of the unbalanced stocks held in this Dominion today this is confirmation that import control as at present operated is a failure and should be abolished. It is unwarranted and unjust for the Minister to endeavour to throw over to the importer the blame for the present unbalanced state of the New Zealand market. If the Government takes full control of what allocations shall be macle—to whom and at what time, irrespective of season or availability—then it is the Government’s responsibility to know down to the last packet of pins what the market requires, or establish a committee or board of men who do know. Antithesis of Democracy “If control is necessary, why not let it be monetary? Give the importer an allocation of sterling and let him buy what he wishes. He won’t buy goods which the market does not require the second time. “Bureaucratic control is the antithesis of our democratic conception of life, but today we find the man in the street, with few exceptions, becoming more and more a servant of the Government rather than the Government being a servant of the people/' Mr Wyness concluded.