IMPORT CONTROL

New Zealand Herald, Volume 82, Issue 25211, 25 May 1945, Page 8

IMPORT CONTROL

POLICY TO CONTINUE. GOVERNMENT'S INTENTION (0.C.) HAMILTON. Thursday That the Government had no intention of abandoning its policy of import selection was made clear by the actingPrime Minister, Mr Nash, in an interview tonight. The abandonment of im- j port control would jeopardise any assurance that our debts could be when they became due or that we could arrange conversions favourably. Mr Nash had said earlier that the need for conserving funds made it imperative that exchange control should ue continued. With the increase in money available for spending in New Zealand, because of factors associated with war finance, the "need for exchange control was doubly clear. Exchange control meant import control, and for that reason the Government had no intentiom of abandoning its selection policy. Preference to Britain Referring to Mr Holland's recent attack on import control, Mr Nash said that since the inception of the legislation the policy had been to extend to the United Kingdom the maximum preference in the matter of granting import licences if the goods.required could be supplied satisfactorily by the United Kingdom. Licences were in general confined to imports from that source. It had been I found, however, that the United Kingdom had been unable to supply all or part of our requirements or certain commodities, and there had been no alternative but to seek them elsewhere, where the goods were of a Class subject to allocation through such organisations in London as the Commonwealth Supply Council and the Combined Production and Resources Board, which determined the source of supply and quantities of goods available. Imports must, necessarily be made in conformity with the decisions of those organisations; : >tUse ol Overseas Funds * Mr Nash quoted instances to illustrate "the policy of directing the maximum, amount of trade to tho United Kingdom." , Import (iontrol was being employed to safeguard the Dominion's economic stability by protecting our overseas funds, he said. To the extent that overseas funds were available for imports they would be employed for that purpose., Within such limitation of funds imports would be made from the United Kingdom to the maximum-ex-tent to which she could satisfactorily meet our needs of the goods required. "Where, the. question of establishing new industries'is involved, the policy is followed of giving every consideration and preference 'to the claims for participation of manufacturers in the.United Kingdom who have been important suppliers of the goods (ioncerned in this market," said Mr Nash. "The objective in that case would be not to create monopolies but to provide opportunity for reasonable competition; while at the same time assisting the'industry to become satisfactorily established and avoiding uneconomic competition."