IMPORT REGULATIONS

Grey River Argus, 27 April 1939, Page 12

IMPORT REGULATIONS

PRIME MINISTER’S CALL To Fill the Gap IMPORTERS’ COMPLAINT. AUCKLAND, April 25. An appeal to New Zealanders to help fill the gap caused by import control was issued by the Prime Minister (the Rt. Hon. M. J. Savage), in addressing the staff of ofce of three factories he visaed in Auckland on Monday. He assured 'both employers and employees that they would get their equitable share of any increase in production. : “We have a long way to go, Mr. Savage said. “We began by selecting the things to come from abroad, and we want you to fill the gap caused by import restriction. I have to see to it that you are not doing this in vain. “The question of raw materials has been mentioned,” Mr Savage said later in another address on similar lines. “Without them, you cannot do the job, and our task is to see that- they are provided. Some people get the wind up to get in six months enough for 18 months or two years. If everybody does that we are just where we were before. At the same time, it is our job to see that, the raw materials are there. “We will get a lot of bouquets thrown at us in the next few weeks bouquets with bricks; but we have survived up to the present, and I think we will be able 'to go the remainder of the journey. You have to fill the gap created by import control, and it is up to me and the Government to see that you are not doing it in vain. It is our job to see to it that you are getting your share. We have to co-operate as never before.” Mr. Savage added that his job was clear, and his conscience was clear in spite of the “bricks.” He was more confident than ever before that the people of New Zealand would stand behind the Government in the building of a nation in the southern seas.

OPPOSITION LEADER

A Familiar Tirade

WELLINGTON, April 26. “The latest trade-smashing restrictions, announced by the Minister• ol Finance, come like another bolt fro the blue. They force home to all people a full realisation of the serious situation into which New Zealand has been allowed to drift, even after years of record prices, a situation which has made this latest unjustified ano dictatorial decree necessary,” said Mr Hamilton, Leader of the Opposition, prior to his departure for the north to-day. . . He said that the restrictions would put thousands out of employment, and would cripple tnousands more, they were a direct reduction in the standard of living overnight and they would impose direct loss, direct hardship, and direct interference to a large section of the people. Ultimately, the accumulation of that serious impact would shake the whole economic hie of the community to its foundations. Mr Nash was unable long to keep, as a State secret, the fact.that his Socialist theories, and the Government’s incompetent administration, have brought New Zealand to desperate straits, so desperate in fact, that Mr Nash had actually’Suggested that manufacturers overseas’ should supply New Zealand with more goods, but that payment for those goods should be postponed for 12 months or more. That was the act of a desperate bankrupt, who tells his creditors he has not enough money to pay his debts with, but, if only the creditors will give him more goods and time to pay, all will be well. Mr Hamilton said that Mr Savage and his colleagues had made a blunder: of acting on their assumption that purchasing power could be created by the Government’s tinkering with the money system. Purchasing power could be created only by production. Having left production to take care ox itself, the Government had intensified the deterioration, by making unproductive and relief work more attractive than productive employment. In the sum total, purchasing power was out of relationship with production. The latest restrictions constituted a backdoor method of cutting the wages and incomes of the people. The Government was well aware of this impending crisis long before the last election, but categorically denied the threat of it, and the whole course of the introduction of corrective measures, since December, necessarily had to be accomplished by camouflage and excuse, patently making the best possible use of cover during the inglorious retreat, as a front-line Socialist policy, insulation was blown up. If, therefore the last election, the huge list of restrictions, recently announced, had been published, the Labour Party would never have scored the victory it registered.

As usual there was a vast difference between what the Government preached and practised. It preached the gospel of spending as a way to prosperity, and practised spending as the way out of it, and into the biggest muddle this country had ever been in. It was tragic to think that this state of affairs occurred in New Zealand, immediately following two years of the highest income from production ever recorded in the history of the Dominion.

A great deal oTThe talk of restricting imports so as to help the manufacturing industries was utter humbug, because many of the goods prohibited or restricted were not suitable for production in New Zealand. Mr Nash might as well admit straight ut that the reason for denying the people, wage earners, traders and indeed all people, their fundamental right to buy the goods they had need of, was due to the spendthrift policy of the Government in using up the London reserves, and by chasing capital out of New Zealand.

He said, and said again, we cannot afford to monkey with Great Britain’s export trade, which is so essential to her economy. Something like 90 per cent, of our exports are bought by Empire countries, yet we applied exactly the same restrictions to the Motherland’s goods as to foreign goods. Mr Hamilton quoted motor-cars,

and said that the decision entirely to prohibit the importation of assembled English cars was an unwarrantable slap in the face to England’s export trade. It meant that a number of England’s well-known manufacturers would be prohibited from exporting any more cars to New Zealand. Mi Hamilton also said that the reduction by 40 per cent, in all other cars meant 40 per cent, less work, less nours, less pay (and an average wage of £3 Gs, that 40 per cent, of those in the trade would lose their jobs. Mr Hamilton went on to say that hundreds of businesses would be wiped out, without any compensation or consideration. Ham-working, honest citizens, who spent their lives in building up the nation, long before we needed any such slogan to inspire the people’s patriotism, were being ruined, without as much as a tear from those who had brought about the disaster. Unemployment was bound to result, from the Government’s meddling and bungling. WELLINGTON, April 25.

Shortages of goods, higher prices, and dismissals of employees as a result of the import restrictions for the second six months of this year, are predicted by Wellington businessmen. “The new restrictions on imports will cut our business seriously,” said the manager of C. Begg and Company, Ltd., Mr. C. A. Rendle. “We can carry on for two or three months without much reduction of staff, but after that it is problematical what will 'happen. It seems we are being treated a little worse than Jews in Berlin, but I can’t believe that, any Government in the British Empire wou!*carry on such restrictions so as to force us out of business.” Mr. Rendle said the chief goods in which his firm did business are pianos, washing machines, refrigerators, musical instruments, radios, records, and sheet music. Imports first six items had been banned completely, although the first four were not and could not be made in New Zealand. The radio business was nearly at saturation point, and was largely uneconomic because of trade-ins. This left records and sheet music to carry on the business.

AUCKLAND, April 26,

An extraordinary position arose in Auckland on Monday morning when several hotels withdrew whisky for 'sale in the bars, and others refused to sell whisky by the bottle. Hotels under other managements continued business as usual. About noon, however, 'the restrictions were withdrawn, and hotel trade resumed its normal course. Many amusing incidents occurred while the restrictions lasted as irate customers argued with barmen and barmaids without avail. WANGANUI, April 26. Viewing the loss of the wool trade with France as serious, the Wanganui branch of the New Zealand Farmers’ Union has decided <to bring the matter before Mr Mulholland, when he visits Wanganui on May 10. LONDON, April 25. , The “Financial News” says that the cuts represent good news for bonaholders, not only because they will conserve New Zealand’s London funds, but because they indicate thnr the Government is prepared to modti fy its mistaken policy, which Is responsible for the trouble.

Internal Loan

AUCKLAND, April 25. “We have not thought of a compulsory loan at all,” said the Prime Minister (the Rt. Hon. M. J. Savage) in discussing the Governments plans for raising an internal loan >i« New Zealand shortly. “I am unable to give the terms of the loan; but the sum will run into several millions.” Mr savage said. He explained that plans lor an internal loan were nearing completion, and would be made public shortly. "It will be an opportunity for the people to invest and he*p building and defending their country,’’ he added. “It is not too much to offer a sunficription ito buiild and protect a structure,” Mr Savage said. He had not heard the suggestion that. New Zealand was likely to borrow from Britain, and in any case the present would be a bad time to go on the market. If, however, it became necessary to raise money overseas to buy raw materials and goods that could not be made in New Zealand, the benefit of such an expenditure would go to Britain.