Sterling Margin Definitely Insufficient

Manawatu Times, Volume 64, Issue 95, 24 April 1939, Page 8

Sterling Margin Definitely Insufficient

Greater Reduction of Imports to be Applied DETAILS MADE AVAILABLE Per Press Association. WELLINGTON, April 22. Details regarding the basis whereon iicenees are to be issued in respect of imports during the second half of this year were announced by the Minister of Customs, the Hon. W. Nash. Explaining the position, Mr. Nash said that there would be some contraction in the return from exports this year compared with 1938. Funds that did accrue from exports last year were insufficient by a considerable margin to cover the cost of imports in 1938, after providng for debt services and other charges accruing overseas. “Ln the circumstances,’ said Mr. Nash, “it is unavoidable that imports be reduced, and the Government has taken the course by means of which it cau best control the situation. With the abnormal reduction of the sterling funds, it has been necessary to institute a system of imports selection, in order that preference should be given for essential goods necessary for the de\elopmeut of the Dominion, and, next tc the restriction of import of unnecessary or non-essential goods, reductions to save exchange should be made in the import of those goods which could be produced or manufactured in the Dominion.” Development of Industry Experience had shown, said Mr. Nash, that very large quantities of goods were on order prior to control being effected, and the indications were that under normal circumstances imports for the first half of this year would have exceeded those for the corresponding period of 1938. Any good* ordered prior to December 6 last were admittted provided tbe quantities were not adnormal, and in addition it was necessary to provide for additional imports of plant and materials required for the development of industry in the Dominion. 9 ’ “It will be necessary therefore,” added the Minister, “if any substantial redaction of imports is to be effected over the whole year, that rreater reductions mast be applied daring tbe second half of tbe year than daring tbe current period. “In applying such reductions th# policy has been,” said Mr. Nash, “U admit as far as possible without restriction goods of an essential nature whether consumer goods or goods required by New Zealand industries. Th« maximum measure of preference habeen given to manufacturers in th« United Kingdom."

The Minister has issued a schedul* of goods for which licences may b« issued to the extent of the value oi similar goods imported by an applicani from the same country of origin durlni the period July 1 to December 31. 193 a This schedule comprises 11 foolscap typed sheets, and in referring to it, Mi Nash stales that from a perusal of thi list of items to which no restriction a imports is being applied beyonc limitation to the level of imports during the corresponding period of 1938, i will be noted that goods which ari being admitted on this basis cover i very wide range end include uoward a tariff.

Referring to the Government’s policy respecting the development of New Zealand industries, the Minister said that the Government would make every endeavour to ensure that manufacturers could obtain all raw materials necessary for industries. It whs important that over-importation should be avoided, as this would only have thi effect of accentuating the difficulties in regard to the overseas funds. To this end Mr. Nash appeals to manufacturers for co-operation in limiting their applications to actual requiremeuts. Expeditious Handling In order that manufacturers’ requests may be dealt with as expeditiously as possible they are asked to supply certain details regarding their stock and requirements, particulars Regarding which are obtainable from the Collectors of Customs. Respecting tne actual restricuon on goods, the Minister stressed the fact that the major factor responsible for such restriction is conservation of sterling funds, and he added that should it be possible for importers to arrange for goods to be supplied without a call on the Dominion's overseas funds, every consideration would be given to their applications.

“In most cases where imports are reitricted,” he said, “the goods are of a Hass which is made in New Zealand or might be substituted by Dominion-pro-duced goods. Doubtless considerable stocks of such imported goods are also held in New Zealand at the present time. In general, therefore, it is expected that sufficient supplies will be available to meet the needs of the community. “It is recognised that as a result of the measures now being applied, some re organisation will be necessary in certain instances. In view of difficulties that would have been created by such action, it was felt unwise to publish details of reductions applied to imports during the first half of the present year. In response to frequent requests, however. and in order that importers may be fully aware of the position, the Government has decided to make the details of the present measures available.” The Minister here includes a list of the percentage of reductions of tariff items for the second period of 1939. It occupies 16 typewritten foolscap sheets. Relaxation Next Tear. Necessarily the whole position would require to be reviewed later in the year, said Mr Nash, and it was hoped that considerable relaxation would be possible in respect to next year’s imports. i While the depletion of the sterling

funds was due to capital transfers which occurred during the later months iof last year, he continued, the major cause of the reduction was over-impor-Iction of commodities. In 1938 the surplus of exports over imports amounted to less than £ 3-million, whereas a surplus of between £ 12-million and £15,jnillion was required to meet debt and bther services that were not recorded in the import figures. The Government’s policy was to provide maximum funds available for the import of essential commodities, particularly to ensure that farmers were fully provided with fertiliser on which there was no restriction and that raw materials and plant for manufacturers were available as required. Both policies would be helped :onsiderably if importers would keep ipplications for licences to actual requirements. Given this co-operation until the sterling funds were again available in a reasonable amount, it should be possible within a reasonably early period to cease restrictions, so that import commodities not now considered essential might be provided for.