GRAVE SITUATION

Otago Daily Times, Issue 26777, 21 May 1948, Page 6

GRAVE SITUATION

FEW IMPORT LICENCES CONCERN OF AUCKLAND CHAMBER P.A. AUCKLAND, May 20. “ I do not think the Government realises how grave a situation is arising,” said the president, Mr J. P. Johnston, during a discussion on import control at a meeting of the Auckland Chamber of Commerce to-day. The situation had now reached such proportions that its seriousness must somehow be impressed upon the Government. “There is scarcely an importer in New Zealand with any licence allocations left in spite of the fact that only four and a-half months of 1948 have passed,” said Mr Johnston. “I am told that 1948 licences are exhausted and trade generally is coming to a standstill. There does not appear to be any administrative provision for the importation of urgently-needed essentials, and such a sense of frustration is in evidence that many merchants consider it is a waste of time and paper to apply for import licences. Turnover must fall away steeply in the later months of the year.’” The curtailment in imports reflected the, request made by the British Government that New Zealand should live within her current income and not encroach on her present large sterling reserves, he said. It was obvious that the volume of New Zealand's imports would be totally inadequate, and representations should be made to Britain seeking, some modification so that the Dominion’s overseas spending could be reviewed in line with her essential requirements. “ I feel certain that the United Kingdom does not want to see New Zealand in a state of economic chaos,” Mr Johnston continued. “Power politics have placed Britain in such a position that her request for us to live within our income arises as a condition of the Marshall aid plan.” The chamber decided to convene a meeting for next Tuesday of its import and export sections, the Bureau of Importers, and the Auckland Manu facturers’ Association to discuss and formulate questions for presentation to the Minister of Finance, Mr Nash, when he visits Auckland next Thursday. ,