MINISTER CLAIMS NEW BASIS WILL FACILITATE TRADE

Otago Daily Times, Issue 26906, 19 October 1948, Page 4

MINISTER CLAIMS NEW BASIS WILL FACILITATE TRADE

P.A. AUCKLAND, Oct. 19. An assurance that the new basis of import licensing he had just announced would. in general, facilitate imports into New Zealand, was given by the Minister of Finance, Mr Nash, when interviewed immediately after addressing the annual meeting of the Auckland Manufacturers’ Association. He said that importers who would be able to spread their buying would be expected to act with discretion, and were enabled to

spread their buying. Mr Ncsh said the assumption was that Ne.w Zealand would have a greater volume of exports this year, and to the extent that her exports were greater, there was no reason why she should not have more imports. Asked whether his statement that the Government would provide every facility for the expansion of manufacturing to the extent that manufacturers produced commodities at a reasonaoly competitive price meant that uneconomic industries would be discouraged. Mr Nash said he believed that competition in New Zealand would exclude the uneconomic man. “We are not driving anyone out of business, but they have to produce something that is required at a reasonable price,” he said. “If things were being made here at twice the price we could import them for, then we would have to give serious consideration to that.”

Addresing the .manufacturers, the Minister said that 1938 had been abandoned entirely as a basis for importing. Licences for 1949 would either be deferred or would be on the basis of those for 1946, 1947 or 1948. Licences would, he thought, be deferred in general if New Zealand could produce here all that she required economically and reasonably. It would be foolish to bring in goods that could be manufactured here, and the Government would be unlikely to allow this. If anyone had a licence in 1948 to import a certain type of commodity and this licence was not • granted for a special purpose, then he would be able to obtain in 1949 licences up to the value he had obtained in 1948. “We have worked this out on the basis that we can trust people not to buy more than they need,” Mr Nash said. “If we have the orgy we had late in 1947, we will be in a bigger mess than we were then. The new 7 system means that manufacturers and importers in general may quietly place their orders. It is a case of faith. We have faith that the importers will not be ordering more than they require. If they do, we will have to change the basis.” The Minister said he hoped that importers would depend upon the basis licences, because he did not want to call on specal ones. Dollar licences would have to be specially applied for and it would have to be proved that the goods were not available from a sterling area and that they were essential.

“ With certain minor exceptions, if you get dollar licences, you are using Britain’s dollars—not ours,” Mr Nash continued. He said New Zealand's dollar imports last year were more than double her dollar earnings. Brief reference was also made to the arrangement with the United Kingdom for token imports of certain classes of goods. The licences to be issued for these items would be 20 per cent, of the value of the 1938 imports from a particular manufacturer and proof would be required of the 1938 transactions.

The practice of importing without licence would have to stop, Mr Nash said. It would destroy all organised planning and be a breach of faith with the decent importer who ordered when he got his licence. If it were necessary to place an order early, say 12 month ahead, the importer should apply for his licence and it would either be granted or an undertaking to grant it would be given. Under the token import system, consumers would be able, if they wished, to keep in touch with prices, qualities and values of United Kingdom products.