IMPORT POLICY

Manawatu Standard, Volume LIX, Issue 48, 25 January 1939, Page 10

IMPORT POLICY

MINISTER’S ELABORATION

FUNDS FOR DEFENCE. Per Press Association. WELLINGTON, Jan. 25. In his address to the conference of importers in Wellington, to-day, the Minister of Finance (Hon. W. Nash) said that during the year New Zealand had to find interest on debts amounting to £8,600,000. and everybody would agree that had to lie paid first to maintain the country’s integrity. Another prior charge of about a million was on private investments held by people domiciled overseas. Then there was about another million required for salaries and commissions, insurance payments, and so on overseas.

Another special circumstance, said Mr Nash, was the present world situation, and New Zealand had to play its part in Empire defence. The present Government had been spending at an accelerated rate on defence during the past few years out of sheer necessity, and he believed that expenditure would have to he still further accelerated during tiro present year, entailing a fairly heavy charge on the storing funds. Materials for defence vould have to come in before other imports.

All those factors meant a fairly drastic cut in imports. It was commonsense to select the imports it was desirable to bring in, so that the new procedure would have the least harmful impact. It was impossible in New Zealand or elsewhere to have a standard of living other than that based on commodities and services produced. INCREASED MANUFACTURE. If New Zealand was to reduce imports and still enjoy its present standard of living obviously it must make arrangements to manufacture in the Dominion and produce more than in the past, both primary and secondary, for the purpose of building up funds. New Zealand should be able, out of its amazing resources, to produce all the commodities necessary and build up the export funds to a greater extent than in the past. In addition, ways and means must he found ol making more goods in New Zealand.

Manufacturers had a case in that there were men, women, and youths not fully employed. Manufacturers would have the maximum facilities provided for tlie import of commodities necessary for the production of goods.

First of all, selection would apply t> the facilities for primary production, and then capital, equipment, and raw materials for manufacturing goods to replace imports. There would be a curtailment of the less essential and non-essential imports.

UNITED KINGDOM PREFERENCE. In Mr Nash’s opinion the United Kingdom had done more for the Dominions than they could reasonably expect any country normally to do (Applause). It had given special preferences regarding marketing facilities, and had made major contributions to the Dominion’s defence, and New Zealand was willing to do its part in making the impact of the new procedure least harmful against the United Kingdom. The Government would do all possible to reduce the difficulties to United Kingdom manufactures and others arising from control. Maximum preference would be given to the United Kingdom, hut there were other countries with which in recent years New Zealand had made agreements, and which lie thought possibly would take more from New Zealand than previously. Since the introduction of control the Government was beginning to see for the first time what had happened to the proceeds of the sale of exports, which had not been fully known in the past. Only during the past month or six weeks had the Government begun to see the ramifications of credit and currency, and their effect on the sterling funds. POLICY MATTER. Mr Nash asked the conference to accept the fact that the Government had l>een elected to take charge of the country, and said the new procedure was part of its policy. He would do everything humanly possible to remove anv hardship, injustice or anomalies that might arise.

As regards the procedure, Air Nash said ho had given instructions to all Collectors of Customs to act exactly the same at every port. There was to he no discrimination. He took particular pride in the staff of the Customs Department"—some of the finest. officers who had been associated with any Government —and he had profound faith in their integrity.

The basis of allocation for the first six months ot the present year was the quantity imported in the first sis months of 1938. That occasioned tremendous difficulties he knew, but there were anomalies and to overcome some of them although lie did not want to issue licenses for the second period just yet. Instructions went out a fortnight ago to collectors that, where special circumstances existed, a license could he issued for half of the total imports during the venr. Provision had also been made for new lines and new imports. Hundreds of appeals had been answered and an effort made to work out the general principles on special points. Cases of particular hardship would be dealt, with immediately.

As the gathering was breaking up a member of flic audience rose to propose a vote oi thanks to Mr Nosh, hut already many of those present had left their seats, and no formal motion was put.

An earlier message appears on page 9.