IMPORT CONTROL

Nelson Evening Mail, Volume LXXII, 2 March 1939, Page 10

IMPORT CONTROL

CLOTHING AND FOOTWEAR j FIRMS ANXIOUS

SERIOUS ALARM AMONG RETAILMRS The drapery, clothing, and footwear retail traders of the Dominion view with grave anxiety the import restricimposed by the Government. ' The ofTicial organ of the New Zealand federation of Drapers. Clothiers, nnd Boot Retailers, in a leading article, remarks that the position with regard to restrictions on imports and regulation of exchange clearing remains “so vague and uncertain as to cause serious alarm in trade circles, more particularly among the retail section which is .almost entirely responsible for the distribution of consumers’ goods to the public. “The result from the business point of view is disastrous as it strikes at the foundations of trading security; destroys the confidence of commercial men here and overseas who arc responsible for supplying Hie every-day needs of tlie community; and again introduces that element of fear and | uncertainty which is fatal to trade | prosperity, and often the forerunner of i panics and slumps.” “LACK OF FORESIGHT” Granted that the drastic measures adopted by the Government in restricting imports and rationing exchange were forced upon it by depletion of overseas balances, the article continues, the diminution of sterling i funds was not a sudden or unforeseen contingency. It must have been observed by the Government long before the decision for immediate action was made. If not. then the authorities responsible showed “an alarming display of lack of foresight and prescience, and it is possible that action was deferred in order that unpalatable decrees should not be enforced till after the general election was over. I “The trouble is to ascertain exactly where we stand. The immediate ! need is for reliable assurances as to | the exact extent to which trading activities are to be restricted, and for how long such disastrous interference with normal trading activities may be expected to continue. On this point our commercial community is entitled to authoritative assurances. “When we look for assurances in | this direction from those in authority | the confusion becomes worse and the uncertainty more alarming. Because while the Prime Minister tells the country that the action of the Government is part of a long-term plan and a new economy-or ‘New Deal’—Mr Nash assures us that it is purely an emergency measure forced on him to make the country’s credit good in London, and implies that as the position of sterling funds there improves ! the restrictions will be eased: but at i the same time we find Mr Sullivan, as j Minister of Industries and Commerce. | proclaiming that the steps which have been taken are part of the Government’s policy of building up industrial development and manufacturing production within the Dominion.

BEWILDERED BUSINESS MAN “In the face of such confusing and mutually contradictory claims by the | Ministers mainly responsible for the i position which has developed, it is difficult for the bewildered business man ito realise where he stands, or how he ! should plan his affairs so as to carry ! on business as usual. The trade organ maintains that the I emergency which arose was “not due • to more importing of consumers’ goods I nor to the small decline in exports.” i The main cause, it is contended, is ‘ the Government's own spending and importing activities, and the return overseas of fund®, allowed to remain here temporarily by overseas exporters in the hope that the Government's promise to improve the exchange posi- < ‘ll would materialise.” The federation points out that “it will not be much use the public enjoying a higher spending power if the goods are unprocurable; and reduced sales will mean reduced staffs. “There will be a serious falling off in revenue from Customs duties, sales tax. income tax. and the levy on wages, salaries, and other incomes, at the very time the Government will be looking for every penny it can collect in order to implement its incoming social security plan, with its greatly-increased expenditure on old-age and other benefits. and its new national health plan with free medical and dental service, nursing, hospitals, and medicines for all.”