Defence of Import Restrictions

Manawatu Times, Volume 64, Issue 97, 27 April 1939, Page 7

Defence of Import Restrictions

Finance Minister Explains WHY HE IS GOING TO ENGLAND Per Press Association. WELLINGTON, Last Night. The Minister of Finance and Customs (Hon. Walter Nash) broadcast over the national hook-up from Wellington to-night a statement on the Government’s import selection and exchange control policy. The Minister commenced his address by setting out the origin of the policy of the Government, recited the circumstances which operated to compel the introduction of import selection and explained the procedure followed.

It was from sterling funds alone, he said, that New Zealand was ablo to pay for the import commodities necessaiy and essential to the development of the Dominion and to obtain money to pay interest on the nation's debt and to re-pay tho debt. The major circumstance which led to tho introduction of tho policy was the fact that in eight months of last year there had been a decline of-over £21,000,000 in the sterling funds. If the withdrawal had continued it would have been difficult to keep to our commitments. Mr. Nash emphasised that the circumstances operating meant a restriction of imports. Whatever course had been followed they could have been restricted by heavy tariffs or by a reduction in expenditure.

This latter course had been tried previously and had succeeded in building up tho sterling funds to £46,000,000, but was it worth the price? “Is it worth the pricef" Mr. Nash asked. Recalling that there had been 70,000 unemployed and widespread destitution and hardship, the present Government had decided to follow a now road and select goods that should be imported according to the needs of the Dominion. “We want to maintain production because it is by production, that we live," said Mr. Nash. “Our standard of living depends upon the commodities produced in this Dominion. Under the new procedure manufacturers of all goods that are necessary to the wellbeing of New Zealand may have licenses for plant, equipment and raw materials. We cannot buy more goods than we pay for. We might obtain goods, but if we obtained them without paying for them, somebody else has to pay for them. If we cannot buy more goods that we can pay for, surely it is better to select the goods to be excluded than have a general cutting down of imports?" Mr. Nash said if, however, the Government allowed everyone to corao in, it would moan a greater demand on the sterling funds for plant and material. Therefore there was a committee working and its job was to see that the licenses recommended to the Minister for plant and equipment were in some accord with the quantity of that were required. “We do want tho help of manufacturers in this direction," Mr. Nash continued. “There arc fairly large stocks in the Dominion ot certain commodities and if the demands are kept in ratio of what we are likely to require, as the months pass the difficulties of finance will bo reduced. The opportunity is there, and for their own benefit and the benefit of the counrry manufacturers should lose no time in bringing their plant and organisation to the- highest point of efficiency." The Minister said he would say to the workors of the Dominion that at present there was nothing more important than production and output. If the workers would do their part by increasing their output, New Zealand could maintain the standard of living it had to-day and extend it to a point which, he thought, could bo justified by the resources of the Dominion. Ho knew that a number of importers would be hard hit by the restrictions. He wondered if it would be possible for manufacturers to think out a procedure whereby to the extent that their trade was expanded they would try to give some of the distribution side of it to those who hod previously been importing and had lost business. The Minister devoted some attention to a statement issued to--day by tho Importers' National Committee. Ho quoted the following passage from the statement: —

But the public will make a profound mistake if they think that in order to pay our debts the devastation in business brought about by the Government policy in this matter is an inevitable part of that necessity.

“It is nothing of the kind," Mr. Nash commented. “The position is that our sterling funds amount to a certain sum of money after we have made our provision for debts. The whole of the remainder will be available for imports. What more could we do?

“The importers' committee had also sugested that wharf workers would find there would be fewer jobs for thorn because ships would be bringing less goods. The Minister said ships were bringing the maximum goods possible. They were bringing less finished goods and more raw materials.

Mr. Nash said in his opinion the United Kingdom had done more for the Dominion than one could reasonably expect it continue to do. The New Zealand Government would do everything possible to reduce the difficulties that might come to United Kingdom manufacturers and others. That was why he was going to England. He was going to talk about trade, defence and the loan that was due to mature shortly. “Though we must look rfter our own people first," added Mr. Nash, “we must also visualise the world. I hope the United Kingdom will accept the reasons for the Government's policy as justifying its introduction."