IMPORTERS’ PLAN

Otago Daily Times, Issue 23718, 27 January 1939, Page 6

IMPORTERS’ PLAN

MODIFIED SYSTEM CONFERENCE APPROVAL SUBMISSION TO GOVERNMENT PRESENT METHODS CONDEMNED (Per United Press Association) WELLINGTON, Jan. 26. “ This conference is of the opinion that the conditions existing as a result of the import regulations gazetted on December 5, 1938, are so disastrous to business in New Zealand that this conference recommends to the Government the following modification of the import regulations, having regard to the conservation of sterling, the protection of local manufactured lines, and alterations in the direction of trade:—That the Government

1. Fix the amount of sterling each importer can use for 12 months, based on, say, one, two, or three years’ average imports, less whatever percentage the Government considers necessary to conserve the sterling funds 2. Protect articles of local manufacture by listing such goods as are to be prohibited entry or restricted by means of permits 3. Vary the direction of trade by listing items subjected to restriction from certain countries

4. Set up an import tribunal, consisting of men skilled in trade and commerce associated with Government officials, to hear and decide appeals.

The conference of importers, addressing itself to the subject of a possible alternative to the existing regulations, after consideration of various proposals approved of the alternative procedure submitted by the Canterbury Chamber of Commerce in terms of the above resolution.

The conference, which was concluded to-day, met in committee in the afternoon. A statement covering the proceedings was issued later. The statement, in addition to giving the above resolution, included the following report:— Minister Thanked

“In the afternoon the conference gave consideration to the policy speech which had been delivered by the Minister of Customs and Finance (Mr Nash) on Wednesday and recorded its views on a number of aspects of that speech. It then discussed the replies Mr Nash had made to the conference on questions which had been prepared and presented to him. A vote of thanks was accorded the Minister for his explanation of the policy of the Government and for his helnful replies to many of the questions which had been asked on points of procedure under the import regulations. “ The Minister’s replies to several important questions, the object of which was to get a disclosure of details of the Government’s policy, were regarded by the conference as being completely unsatisfactory, and it was decided that they should be the subject of further representations.

“The conference then went on to deal with the second part of the agenda, the question of the desirability or otherwise of the import regulations as a means of conserving the London funds. The whole position as revealed by the policy speech of the Minister and his replies to the questions on administration was reviewed Disastrous results of the regulations to date were revealed in numerous cases of hardship that were cited and the conference expressed grave concern in regard to the apparently inevitable further dislocation of business and the consequent hardship to employers and employees. “Impracticable and Unjust” “ The following resolution was carried: That this national conference of importers condemns as impracticable, unnecessary and unjust the Import Control Regulations 1938. " Arising ou of a general discussion on the regulations and their probable effect on the financial position c" the country as disclosed by the Minister, a further resolution was carried in the following terms:. Public Expenditure That the Minister of Finance be urged to make a public statement as to the extent to which the Government intends to cut down public expenditure in New Zealand as well as the value of imports by the Government, with a view to relieving the present serious financial difficulty.

“ Finally the conference elected a special committee under the aegis of the Associated Chambers of Commerce. The duties of this committee are to be: —

1. To make a reasoned reply to the Minister’s opening address. 2. To tabulate and express the considered views of the conference on the replies given by Mr Nash to the questions addressee to him by the conference. 3. To make clear to the consuming public the objections of the conference to the present regulations and explain fully the merits and advantages of the alternative constructive pr.posal recommended by the conference.” BASIS OF ALLOCATIONS POSSIBLE EXTENSION CONSIDERATION NEXT YEAR IF NECESSARY (Per United Press Association) WELLINGTON, Jan. 26. Another question put to Mr Nash by the importers’ conference was whether, if the regulations were to extend over 12 months, the Government would consider issuing licences for a period of 12 months instead of the present period of six. , Mr Nash said that was not wholly possible during the present year, but if the system was continued during 1940, consideration would be given to the granting of licences on an annual basis during that year. The Government was now giving consideration to the question of the basis on which licences would be issued during the second half of the current year, with a view, especially, to facilitating seasonal business. Mr Nash was asked if, where a firm considered it was penalised by the strict application of the 1938 basis of allocations, the Government would agree, on an appeal being made, that the average of the firm’s figures for the two preceding years be allowed as the basis? He replied that, in general, there would be no departure from the 1938 basis, but special cases would be considered on their merits. Similarly, applications for licences for new lines and new agencies would be considered on their merits. The Government, however, would not agree to the transfer of a licence for goods under one tariff item to goods under another. The Government would not be anxious to increase the number of importers,. but, where it was considered justified, an endeavour would be made to find some formula to meet the position.

COMPENSATION QUESTION MINISTER NON-COMMITTAL RESTRICTION INEVITABLE (Per United Press Association) WELLINGTON, Jan. 26. Mr Nash was asked at the importers’ conference to-day whether there was any intention of compensating firms that had been put out of business by the import restrictions and, if so. to what extent? “ I am afraid I cannot go into that just now,” replied the Minister. “ I don’t know whether it would be practicable to work out compensation. Because I can take this into account: even if we were not going the road we are going to-day, you would still be compelled to restrict imports.” The course that had been adopted, Mr Nash said, was only one of the roads. Imports into the Dominion during the next 12 months must be restricted.