OVERSEAS FUNDS

Otago Daily Times, Issue 26232, 16 August 1946, Page 8

OVERSEAS FUNDS

HEAVY CALLS EXPECTED IMPORT CONTROL TO REMAIN Overseas funds were briefly discussed by Mr Nash in the course of a statement in which he exphasised the necessity for the maintenance of import control. • „ Mr Nash said that as a result of New Zealand’s favourable overseas trading position in recent years, and in spite of the substantial repayments of overseas indebtedness which had been effected, the Dominion’s net sterling balances in March last had reached a record of £ (N.Z.) 98,000,000. In considering this satisfactory figure, however, account must be taken of the fact that during the war years industrial plant and equipment suffered substantial depreciation and now required extensive replacement. The Government’s own requirements in respect of additional hydro-electric equipment railway rolling-stock, etc., were substantial, while the public had had to postpone replacement of many essential worn-out items and merchants' stocks generally had been reduced to a very low level. Moreover, overseas prices had practically doubled since the war, so that the import value of our sterling exchange had been correspondingly reduced. All these factors, Mr Nash continued,, gave point to the necessity of maintaining the policy of import selection. Nevertheless an, indication that the Government was liberal in implementing that policy was the fact that for this year import licences issued, including amounts carried forward from previous licensing periods, had exceeded, at July 31 last, £100,000,000 It would thus be appreciated that existing shortages in imported goods were mainly due to the physical inability of overseas suppliers to meet the Dominion’s requirements.