IMPORT CONTROL

Otago Daily Times, Issue 23945, 21 October 1939, Page 12

IMPORT CONTROL

NO RELAXATION FURTHER REDUCTIONS PROCEDURE UNCHANGED EXPLANATION BY MINISTER (Per United Press Association) WELLINGTON, Oct. 20. The schedules were issued to-day getting out the basis on which import licences will be issued for the third period—January to June, 1940 The impprts during the January-June period of 1938 are again taken as the basis for the issue of licences during the corresponding period of next year, and the same procedure generally in regard to applications and the issue of licences will apply. The Minister of Customs (Mr Nash) stated that in reaching a decision on the matter the Government had given the fullest consideration to all issues, with a view to determining whether any modification might with advantage be made to the procedure in operation during the present year for the purpose of controlling imports A number of suggestions had been received in that connection, and had been carefully examined, but it was considered that no procedure other than that now in force would give the measure of control necessary under existing circumstances.

It had been hoped. Mr Nash said, that the reductions applied to certain imports during the present period would have had the effect of improving the relationship between imports and sterling funds available from exports, and would have enabled some relaxation _of the restrictions to be made during the next period. Unfortunately, the circumstances which had since arisen had made any relaxation impossible in the meantime. On the contrar.. it had been found necessary to effect a further reduction of imports, which necessitated a tightening of tine restrictions to some degree.

The Minister said he thought this position would have been generally anticipated In determining the amount of exchange which would be available Cor third period licences it was necessary to make provision not only for payments accruing overseas in respect of loans and other charges, but also for remittances due after December 31 in respect of second-period licences. The necessity to provide during the present period for imports of reserve stocks of certain goods essential to the maintenance of the export industries, in order to safeguard their position in the event of circumstances arising which might prevent their obtaining such goods, had also had an effect, constituting an additional drain on the sterling funds.

Essential Requirements

Notwithstanding this position, arrangements were being made to import sufficient goods to me,et the essential requirements of the community. In point of fact, Mr Nash said, the total volume of imports during 1939 would compare not unfavourably with that of 1938, when they were at a relatively high level. The figures for the eight months ended August 31 each year were:—l93B, £36,783,000; 1939, £3(3,440,000. The value of the licences issued covering imports for the full year (including some carrying no commitment for sterling funds) amounted approximately to £56,000,000. It was probable that goods covered by such licences—to the value perhaps of several million pounds—would not be imported until after December 31 next. Any such carry-over into the third period would, of course, have the effect of supplementing to that extent the volume of goods which would be imported under the licences granted tor that period. Turning to the schedules of items, the Minister said a very wide range of goods (generally materials for industry and other imports of an essential nature) carried no restriction at all, except limitation in the meantime to the 1938 level. In regard to items .in respect ol which no basic allocation was being made, but applications for which would be considered individually on their merits, the Minister said this new procedure was considered necessary in the circumstances in order that better control might be exercised in granting licences, according to the actual requirements of the importer or manufacturer concerned. It would be necessary in such cases for the applicant to furnish full details of his stocks o). such materials, and such other information as might be available to establish that the goods were actually required.

Preference for British Goods The policy of granting a maximum measure of preference to the United Kingdom was again evident, the Minister said. It had become necessary, in fact, under the present circumstances, which rendered the conservation of sterling exchange a matter of major importance, to purchase as far as possible our goods from the United Kingdom, consistent with meeting essential requirements.

To that end, Mr Nash said, restrictions had been applied to imports of certain classes of goods which previously had been admitted from all countries on the same basis as those from the United Kingdom, while in other cases the existing restrictions had been increased.

The position regarding imports of motor vehicles was still under consideration, but it was expected that a decision would be reached in the course of a few days, when an announcement would be made. Possible Delays The Minister said attention had been called to a possible difficulty in obtaining supplies of certain goods from the United Kingdom under existing conditions. Where this was found to be the case, every consideration would fc-e given to applications to import goods from other sources: but in view of the necessity of maintaining the maximum volume of trade with the United Kingdom and conserving sterling exchange it would be expected that imports should come from that source whereever possible. Failing that, preference would be given to imports from some other dominion. It was recognised also that, owing to the uncertainty attaching to trade in war-time, it would not be possible in all cases for importers to arrange for goods ordered under their licence*' to be imported by June 30 next. It was accordingly decided to permit goods to be imported under the licences not later than August 31 next Applications for licences must tie lodged not later than November 30 The concession made in respect of the admission of goods for which firm orders had been desoatched or placed overseas prior to December 6, 1938. would mt be continued after November 30 next. Difficulties Appreciated Mr Nash said the Government fully appreciated the difficulties which confronted importers in connection with imports during the present period owing to the insufficiency of sterling funds It anticipated that, provided the imports were spread more or less evenly over the whole period, the funds for remittance in respect of many, if not most, of the licences for the third period would be available when required in the ordinary course of business, but in any case not later than August 31 next. It would be necessary tor licenceholders to continue to apply to the Reserve Bank through the trading banks for remittance authorities cover-

ing their licences. It had been hoped to be able to dispense with this procedure, but in view of the uncertainties of the position arising out of the war and otherwise it had been deemed advisable to continue with it in the meantime. Earlier Payments Possible "As already indicated, however, if all goes well, importers generally should be free of most of the difficulties experienced in the second period in arranging the imports on the basis of deferred payment,” said the Minister. “In addition, it is hoped that it may be possible to review the months fixed under the remittance authorities already issued and allow overseas payments earlier than is provided for in those authorities, “Importers desiring any such rearrangement or certainty as to when funds can be made available for their particular imports under third-period licences should apply to the Reserve Bank through the local branch of the trading bank with which they deal “It is inevitable that the restrictions which it has been found necessary to impose,” the Minister concluded. "should bring some difficulties to those affected, but there does not appear to be an alternative which would not bring greater difficulties. Given maximum co-operation—and I have no doubt it will be forthcoming —in assisting to solve the present problem. I am confident that the difficulties will be overcome within a comparatively short period, and will eventually lead to a greater measure of economic stability and security.” THE SCHEDULES GROUPING OF ITEMS It is impossible, owing to pressure on space, to publish in full the Customs schedules on the basis of which the third-period import licences will be issued. Importers will be able, however, to see these at the office of the collector of Customs. The tariff items are grouped under various headings as follows:

List “A.”—Goods admitted without restriction from any country except that in the meantime licences will be limited to the value of the imports of such goods by the applicant during the corresponding period of 1938. List “B.”—Goods admitted from the United Kingdom up to level of imports in 1938. but subject to restriction from other sources. List " C.”—Goods subject to a reduction of 25 per cent, from the United Kingdom and subject to restriction from other sources.

List “ D,”—Goods subject to a . reduction of 50 per cent, from the United Kingdom and subject to restriction from other sources.

. List '* E.”—Other items subject to reduction from the United Kingdom and other countries. List 11 F.”—Items In respect of which no basic allocation is being made but application will be considered individually. To facilitate consideration applications in respect of industrial materials should be supported with full information regarding stocks and requirements. List “ G.”—ltems in respect of which no licences will be ' granted in the .meantime for imports from any country. BLOW TO IMPORTERS COMMENT IN AUCKLAND QUESTION OF TRADE WITH BRITAIN (Special to Dailv Times) AUCKLAND. Oct. 20. The suggestion that the new third regulation of imports would divert trade to Great Britain was not correct, said Mr W. A, Boucher, president of the Auckland Bureau of Importers, pointing out to-night that the new restrictions meant'the death knell of a large number of organisations which had been holding on. hoping for better conditions.

Some trade, he said, might go to Great Britain, but it would not make up for that which was destroyed by the import regulations. The reason was that traders were not allowed to secure new lines in Great Britain. Licences for goods for which there was a sale could not be increased. It seemed a pity, Mr Boucher concluded, that those who had been hoping for improved conditions should not have tneir wishes in any way gratified. MANUFACTURERS’ VIEW APPEAL FOR EXTRA EFFORT A RECENT SET-BACK (Per United Press Association; WELLINGTON. Oct. 20. “It is evident from the schedules that a great deal of careful consideration has been given to the making of decisions,” says a statement by the New Zealand Manufacturers’ Federation. “A large proportion of the sterling funds available has been allotted to materials for the manufacturing industries, upon which there now devolves the duty of making the best possible use of these licences for the benefit of the country as a whole “ The amount of sterling funds available is not large. Accordingly, for this further reason the federation makes an appeal to all in industry, both employers and workers, to use every effort towards the most economic and efficient production as a special wartime effort “ Unfortunately, these schedules should have been brought down some months ago in order to preserve the continuity of manufacturing. In practically all industries orders for materials from overseas take some months for delivery and in many cases longer. The position regarding the length of time necessary in respect of orders for materials is. of course, even worse in the present state of war. It is to be regretted, therefore, that this setback ha? been given not only to the expansion of industry, which has pcen so sedulously fostered and encouraged by the Minister of Industries and Commerce, but even to the continuity of production.”