IMPORTERS' VIEW

New Zealand Herald, Volume LXXVI, Issue 23429, 19 August 1939, Page 16

IMPORTERS' VIEW

SURER BASIS GIVEN COVERAGE INCOMPLETE SMALL MEN'S DIFFICULTY Surprise at the delay in issuing particulars of the new export credits plan was expressed yesterday by the president of the Auckland Importers' Association, Mr. Hugh Thomson. "The statement now made by the Government assures importers that the funds to cover the whole of the licences for the second period will be available," said Mr. Thomson "although the complete coverage may not be obtained until the end of June, 1940. "The customary method of financing imports is by means of drafts, and the method outlined in the cable news of arrangements made with the Export Credits Department in Britain", while providing for the negotiation of drafts, will entail insurance-premium and interest charges, which will' be' added landing expense on goods, although the former will be offset to some extent by delayed payments. > "Under the system, coverage to the exporter of 75 per cent only is pro: rided, and smaller importers and those establishing new business connections will undoubtedly find this a difficulty hard to overcome. Larger importers with established connections will no doubt seek accommodation through the trading banks to tide them over until funds can be remitted. "The whole system now disclosed provides some foundation upon which merchants can negotiate their finance, and will allay the anxiety which has been felt among importers for some time. It is difficult to understand why a similar policy statement to the present one was not released earlier. , "The Auckland Importers' Association has been - urging for some time that the situation be clarified. It is now nearly a month since overseas funds were held up, and it has been a time of worry for importers, while our reputation overseas has been affected-."

OVERSEAS PAYMENTS GENERAL REMITTANCES NEW SYSTEM OPERATING Permits are now being issued in Auckland under the new credits control plan for payments overseas other than for goods. With such permits the Reserve Bank has followed the same system as that pursued for goods and has generally spread payments by monthly remittances. Practically all the permits so far received, other than for the immediate requirements of persons going overseas, replace permits cancelled when the Reserve Bank's control scheme was announced. They have been coming to hand this week only. No instance has been forthcoming where a permit previously given has not been honoured so far as the total amount is concerned. But the monthly spread of remittances for the payment of interest, rents and other income to persons abroad was unexpected. Where New Zealanders are travelling l abroad, they have been granted a.sum for the period, and the practice has been to authorise remittances by equal monthly instalments.