IMPORT LICENSING

Otago Daily Times, Issue 27345, 22 March 1950, Page 4

IMPORT LICENSING

Overhaul Of System

Proposed

GOVERNMENT’S INTENTION

BLENHEIM, Mar. 21

The intention of the Government to overhaul the entire import licensing system was announced by the Prime Minister, Mr Holland, in an address to the annual conference of the Associated Chambers of Commerce this afternoon. The present system, he said, was the cause of widespread discontent. No one was satisfied with it nor were they satisfied with its administration.

Mr Holland indicated that as from the middle of April, an interim advisory committee would he put in operation to handle urgent aspects of import control, to advise the Government on questions of overhauling the present system, to recommend the grouping of tariff items and to make a list of goods that could

be exempted altogether from import control.

The committee would also make representations regarding 1951 licences which, the Government proposed, would be in the hands of traders by July of this year instead of November as heretofore.

Mr Holland said that the Minister of Customs Mr Bowden, had given the question of import control an immense amount of study, and the Government was confident that the system proposed, which would include the setting up of a Board of Trade, as written into the National Party’s policy before the election, was the right one. Mr Holland expressed the opinion that some people could get licences too easily at present, while in other cases licences were cut in half for no apparent reason, He felt that there was more trade done in import licences than in goods in some instances. There were many cases where licences could be done away with altogether, and the Government was satisfied that there were numerous instances where tariff items could be telescoped. These would be investigated by the committee and action taken accordingly. The committee, he said, would consist of a small number of adequatelypaid members who would he absolutely independent of trade interests. Three men—one with a strong manufacturing background, another with a trade background, and the third with wide experience in public service and the study of trade economics generally —were wanted. Mr Holland said that the licensing system was dictated by the balance of payments of overseas trade, the effect of inflation inside this country, and because overseas funds had been used for the payment of debts long before they were due. He announced that New Zealand’s deficit of overseas payments, which was expected this year to be between £10,000,000 and £15,000,000, had, thanks to the high prices realised by wool, meat, butter, etc., been reduced to between £2,000,000 and £5,000,000. Mr Holland added: “ Our balance of payments system is unsatisfactory because we are spending more than we are earning overseas. Our estimated income this year was £150,000,000, and we thought we were able' to finance goods to the value of £113,000,000. However, at that time import licences to the value of £40,000,000 had been issued. We have been able to reduce the Government’s requirements *of overseas exchange by £3,000,000 in the 14 weeks we have been in office, and we will continue to search every avenue to improve on this.” * Referring to the dollar situation, Mr Holland said that in 1949 the deficit in United States and Canadian dollars was 52,000,000 dollars, but they would reduce this this year to 32,000,000 dollars.