IMPORT RESTRICTIONS

Otago Daily Times, Issue 23810, 17 May 1939, Page 12

IMPORT RESTRICTIONS

REACTION IN ENGLAND UNFAVOURABLE COMMENT fFROM Our Own Correspondent) LONDON, Apl. 24. The import restrictions announced by Mr W. Nash have, not unnaturally, been received with little favour. Among the centres' concerned by the decision are, Nottingham, Glasgow, Wolverhampton, . Northampton, Leicester, Oxford, Manchester and Birmingham. In Leicester a boot manufacturer said that the new regulation would seriously affect the town. One of the leaders of the hosiery industry stated that South Africa had already taken New Zealand's place as Leicester's finest market. The new restrictions would be a further blow. Prohibition of the import of footwear will hit Northampton, it was declared. The New Zealand market had been of great value despite the exceptionally high tariff already existing. In Birmingham Mr B. J. Hegarty, export manager of the Austin Motor Company, saidr "While we realise that the financial state of New Zealand issuch that some such measure must be adopted we do regard this as a serious blow to our export trade-." Lord Austin, chairman of the Austin Motor Company, said for two years past his company have bee"ri assembling chassis . 'and ■• building bodies in New Zealand, employing local labour. The new prohibition will affect big cars, but they shall no doubt meet the situation. A member of the Wolverhampton Chamber of Commerce said that if New Zealand did not buy British manufactures, then she could not expect Britain to buy her food. Mr Guy Locock, Director of the Federation of British Industries, when informed of the new list of excluded goods, said that he could make no comment because the matter would have to be considered by the Empire section of the federation. The comment of the Daily Mail was: "For some time the position in New Zealand has been a source of anxiety in city circles, and the prices of the Government loans have been falling. The reason tor this is, in the city view, that the social programme of the New Zealand Government has been too ambitious and was bound, sooner or later, to place an undue strain on the country's finances. " Now it is evidently realised that the increased domestic spending has encouraged imports to an extent which the existing scale of exports does not justify. Although the New Zealand Government's action in curtailing imports emphasises the economic difficulties of the country, it nevertheless shows a determination to correct present tendencies and restore a sound position. It remains to be seen whether the Government is tackling the problem at the right end and whether a revision of the internal spending programme will not also be necessary." The Evening Standard said: " New Zealand proposes to make a reduction in imports. " That is a necessity. It is brought about by unsound internal economic policy, which gives the appearance of increased spending ability, but which, in fact, does not provide the basis of exchange of goods. The present situation was foreshadowed in these notes two years ago, when holders of New Zealand bonds were advised to sell out. "Mr Nash, the New Zealand Finance Minister, at the time took exception to those remarks, but there was much support for the view in the press of New Zealand, and the Evening Standard was widely quoted. Since that time New Zealand 5 per cent. 1940 bonds have fallen from £llO to £97. " It is not yet time to buy these bonds, but there is no doubt that as time goes on the sound character of the neonle of New Zealand will assert itself.

" The prohibition of imports will not solve the situation, but it is the beginning of a wriggling movement back to sanity."