IMPORT CUTS

Gisborne Herald, Volume LXVIII, Issue 20625, 5 August 1941, Page 9

IMPORT CUTS

TRANSFER OF SOURCES EXTENT OF REDUCTIONS GROWTH OF CONTROL An impression that allocations for next year’s imports provide that goods may be imported from alternative countries at will has been corrected in Auckland. “Licenses for 1942 will specify the same countries 'as those originally shown on the licenses which form the basis of the new allocation,” it was stated. “Ii it is desired to transfer from the country indicated on the license to another source of supply, special authority is necessary.” ‘ The drastic effect that the 1942 import schedules will have on many commodities was stressed by the Bureau of Importers in a statement issued. It was pointed out that in a large number of cases the values imported had been reduced in 1940 ir. respect of goods from Britain, sti; 1 further reduced from other British countries and eliminated from foreign countries. The further 50 per cent cut now imposed meant that in a typical case the value permitted 'in 1942 would be £37 10s as against £3OO in 1938. Concern Expressed Increased costs and difficulties of ' supply would still further accentuate the position. Importation of about half the items on the tariff list was still prohibited as in 1941. Considerable concern was expressed by the bureau at the increasing number of commodities which had been made the subject of Government control, indicating a further encroachment on the fields of private enterprise. One large importer informed the bureau that every line his company imported was now subject to Government control. This system lent itself to political favouritism, as no fixed allocation for importation oi controlled items was made. The increase in the number of controlled items v/ould also increase work for both importers and the Customs Department. More Flexibility Expected J It was regretted that a more general application of the principle of transfers of licenses from Britain to other British countries had not been provided! Importers had expected more flexibility in the new schedule. Further items in which increased shortage is likely unless relief is given later are shown by examination of the new schedules. Some of these items are now for the first time subject to reductions on the 1938 value, while others have already been subject to cuts. The value of most surgical and dental instruments, appliances and supplies has not hitherto been subject to reduction on the 1938 imports, but is now cut 50 per cent. The same is the case with a large item embracing many oxides and other chemicals largely used by chemists and manufacturers and with imports from Britain of many lines of textile piece goods, printing ink and sewing cottons. Additional Heavy Cuts Owing to increased demand there is already a shortage of the latter commodity. The importer will get, as a result of increases in prices and the previous elimination of foreign supplies, only about a sixth of the quantity he imported in 1938. Items, British supplies of which were cut 50 per cent in 1940 and which are now subject to a further cut of 50 per cent, include carpets and floor coverings, cutlery, most sports goods, and tvpewriters and other office equipment, so that importers will get 25 per cent of the value of these items imported from Britain in 1938. Elimination of foreign supplies, price • and freight increases will reduce the actual quantity imported much further. Imports of linoleum from Britain will be 37£ per cent of the 1938 value.