BRITAIN WANTS N.Z. IMPORTS KEPT WITHIN INCOME-Mr. Nash

Gisborne Herald, Volume LXXV, Issue 22620, 24 April 1948, Page 4

BRITAIN WANTS N.Z. IMPORTS KEPT WITHIN INCOME-Mr. Nash

(P.A.) WELLINGTON, April 24. Cables indicating it was the wish of the British Government that. New Zealand should keep its imports for this year within the limits of current income were quoted by the Minister of Customs, Mr. W. Nash, in replying to a deputation from the United Kingdom Manufacturers and New Zealand Representatives’ Association. The Minister denied a suggestion that this income had been underestimated.

The spokesman for the deputation, Mr. J. Raine, stated that the deputation viewed with concern the heavy reductions in the import licences for the 1948 period for goods from the United Kingdom. The deputation was supported by representatives from the New Zealand Retailers’ Association, the New Zealand Wholesale Soft Goods Federation, pottery and china traders. Bureau of Importers, and the New Zealand Electrical Federation. ‘‘Some immediate relaxation in certain trade sections will need to be made for the balance of the 1948 period and additional licenses issued if we are to have a continuous and seasonal flow of goods through our factories, merchants and stores,” said Mr. Raine. ‘‘Consideration should also be given to the issuing of licenses for many manufactured articles now available but still prohibitedConsiderable Disparity In Figures “There is no doubt that, in many industries, serious shortages are occurring through lack of raw materials or semi-finished materials, many of which are available to this Dominion but are unobtainable because of lack of import licenses.” Mr. Raine said there would appear to be a considerable disparity between the figure of £144,000,000, as recently reported in the press, estimated as New Zealand’s current income and f 95.000.000 as indicated by the actingMinister of Finance and Customs on March 9 as the total allocations for the 1948 import licenses, assuming that licenses already have been granted for that amount. The Minister asked where the figure of £144,000,000 came from. A member of the deputation mentioned that the Chambers o t Commerce had estimated that figure. Replying, Mr. Nash read a cable sent in November by Mr. C. R. Attlee to the Prime Minister, Mr. P. Fraser, the effect of which Was that it would help Britain greatly If New Zealand could keep her imnorts for the current year at least within the limits of her current income. He also stated that the Government had sought a clarification of the reported statement by the British Board of Trade spokesman that Britain did not want any Dominion. simply through ultra-patriotic motives, to slash its imports from Britain in view of the fact that this statement tended in give a false impression of the situation and that, the Dominion was cutting her imports unnecessarily. Premier’s Advice Stands

Mr- J. T. Martin asked was not the Government under-estimating the exports from New Zealand this year. The export income had been estimated at £140,000.000 and that allowed a considerable margin to work on, over and above what the Government had allowed. The Government would probably to have £30.000,000 extra. Mr. Nash said the deputation did not know what the estimate was. It was not right to infer that the income had been under-estimated. Mr. Martin asked if. in the Government’s estimate, the Minister had allowed for the paying of £24',000.000 debt London. Mr. Nash said they could still live within their current income and pay off debts. Mr. Martin: Are you giving licenses to the full extent of the credits that would be available this year? The Minister said that the most competent officers of the Reserve Bank, Treasury, Customs and Marketing Departments had been asked to give an estimate of New Zealand’s income and licenses were issued that exceeded that figure bv 10 per cent. Mr. Martin: We all believe you are holding up a considerable credit balance. Licenses Exceeded Income Last Year The Minister said the total of the licenses for the current year must inevitably be less than last year’s if they were to keep faith with the United Kingdom. The licenses issued last year exceeded New Zealand’s current Income. Last year’s licenses were issued for more than three times the value of 1938 and this year for more than twice the value. He would like to know: Had the Government failed to issue licenses

for any commodity that was essential to the economy of the country and was available from the United Kingdom. He would like to know where the Government had refrained from issuing licenses for raw materials that were essential to the country and were available. The £144,000.000 estimate was made by someone who did not know that one month’s change in climate would alter the estimate by £10.000.000. The licenses issued far exceeded £95.000,000 already. The £95.000,000 did not include Government purchases which were not licensed. If the Government “let the lid off,” New Zealand would not have any money in the United Kingdom next year. Asked if he would consider issuing furffier licenses if it were found that the export income had been underestimated Mr. Nash said that New Zealand would import goods that were essential to the country and for which it had funds and to the extent that they were available in Britain. After essential needs had been satisfied, semi-essential requirements would be considered.

In December a cable had been received from the High Commissioner, Mr. W. J. Jordan, in which he had advised that he had received a letter from Sir Stafford C.ripps, Chancellor of the Exchequer, in which the latter stated that Mr. Attlee's request most emphatically stood.