INVISIBLE ITEMS

Otago Daily Times, Issue 24448, 6 November 1940, Page 9

INVISIBLE ITEMS

CHARGES ON STERLING FUNDS TOTAL EXCEEDS £25,000,000 EFFECT ON IMPORT POSITION (Per United Press Association) AUCKLAND, Nov. 5. Charges totalling over £25,000,000 on New Zealand’s sterling funds for the 21 months ended on September 30 this year, quite apart irom those due to the Government debt services and the country’s imports, were itemised by the Minister of Finance. Mr W. Nash, in addressing a luncheon meeting of the New Zealand Institute of Business Executives to-day. After outlining the reasons for the introduction of exchange control and import selection, the Minister gave details of some of the standing charges to be met before there could be determined the amount for which import licences could he granted. Mr Nash said the country was considered to require at least £ 12,000,000 a year to meet the so-called “ invisible " items. One startling thing was that the figure of £12.000,000 was nothing like the total. “I was astonished,” he said. “ at the other amounts that this country has to meet because of the requests and ordinary investments of the people."

Some Major Hems The Minister said that for the 21 months ended on September 30 the permits granted for remittances from New Zealand for items other than imports and Government debt services and similar charges came to over £25,000,000, Interest on the local body debt was just under £2,000,000 repay ment of local .body debt accounted for some £3,600,000, the United Kingdom having asked for the repayment of these debts as they became due during the war. . Interest and dividends to private persons tdok between £3,000,000 and £4,000,000, and repayments of debts due involved slightly less than £2,000,000, Mr Nash said. Legacies amounted to nearly £ 1,000,000, capital withdrawn by persons emigrating was £600,000. the earnings of overseas firms fell just short of £2,500,000. and the overseas expenses of New Zealand firms took about £1,300,000. Royalties, commissions and insurances absorbed nearly another £1,000,000. and donations and similar remittances, including those of a charitable and religious nature, were about £1,000,000. Films and other entertainments accounted for a sum that was not less than £500,000 and travellers’ remittances were £1.600,000. Another item that might run to large figures was contributions to the troops overseas. There had also been £IOO,OOO for the relief of distress in London’s bombed areas and a similar amount for the purchase of fighter planes for the Royal Air Force.

Amount Left for Imports “Every time we are generous it restricts the amount of goods we can bring into the country,” Mr Nash said, amid laughter. He added that he was very happy to see people generous, but it was a fact that such gifts meant a limitation of imports. “We have provided every penny required to meet New Zealand’s commitments. Money made available by the banks in the middle of last year has already been repaid, as has £2,000,000 in connection with short-term debts,” _ Mr Nash said that in addition to the “ invisible ” drain on sterling, the Government had also received some invisible ” items, and he thought that under this heading something like £5,000,000 could be added to the value of exports. If the proceeds of the sale of exports and the invisible receipts were added together, and from their sum were deducted the items he had mentioned, plus the Government debt services, the amount left would be that available for imports.