FAILURE OF PLAN ALLEGED

Southland Times, Issue 23976, 17 November 1939, Page 4

FAILURE OF PLAN ALLEGED

Removal Of Import Control Urged REMITS TO CHAMBERS OF COMMERCE (United Press Association) WELLINGTON, November 16. Proposals for the removal of the import control scheme were made by the Associated Chambers of Commerce conference, figures being quoted to show that, as a national expedient, the control plan had failed. The Auckland Chamber submitted a remit—“As import, licensing is irksome, complicated and costly, and has proved ineffectual and unnecessary for its intended purpose, the limiting factor being the volume of New Zealand credit overseas, it should be abandoned. During the period which must necessarily intervene before abandonment can be achieved, it is suggested that the existing system should be modified in the following way:—(a) Each importer to have allocated to him every six months the total sterling to which he is entitled; (b) importers to be free to import within their sterling allowance, subject to ordinary tariff control and prohibition of certain lines; (c) the direction of trade to be controlled by tariff.” . T „ The remit was moved by Mr L. D. Nathan, who contrasted the incoming .cargo of the present time with that of 12 months ago. Mr A. Ely (Auckland), in urging complete abandonment of the present restrictions, said it was recognized that such a move could not be made without some transitionary period, during which some form of control must be exercised, such as was employed in 1932. On that occasion, however, control was left in the hands of the trading banks, who in six months were able to restore the London funds to normal. Had the situation .been, squarely faced before it became acute, and had the trading banks had charge of it, the present crisis would possibly not have developed. If the trading banks were to take control now it would be a tremendous task, but he felt the commercial community had great confidence in the trading banks. Import restrictions formed the kernel of the commercial community’s operations today, and only by their removal could the hobbles which now checked the legitimate operation of industry be removed. Mr V. E. Hamilton (Canterbury) said constructive discussion was essential.' If the Government was to carry out its policy A voice: Not if we can stop them. TRIFLE OBJECTIVE Mr Hamilton said that as the Government desired to achieve the triple objective of controlling sterling, protecting local industry and directing trade to various countries, it was considered by the Canterbury Chamber that this aim could be achieved by a simple formula, which he gave as follows:—First, each importer to have allocated to him the total sterling he was entitled to each six months, second, the licensing system to be abolished and importers to be free to import within their sterling allowance, and subject to prohibitive lines and tariff control; third, the direction of trade to be controlled by tariff. This he moved as an amendment. He said that while there might be some who believed everything should be left to the trading banks, one of the chief functions of the Reserve Bank was to budget imports on the probable value of exports, and the Government was entitled to have its Reserve Bank to do this, Mr A. M, Seaman (Auckland) alleged that the Canterbury proposal was a deliberate attempt to sabotage the negotiations which had previously passed by correspondence between the two chambers. The amendment was lost and the remit carried. MERCHANTS’ RIGHTS A Canterbury remit urging the Government to recognize as the underlying principle of price control the right of the merchant to sell stock upon a replacement cost basis and to provide for this right in its regulations was also carried. The mover, Mr J. Roy Smith, said the Government’s policy upon fixing prices was definitely a policy of monopolistic enterprise, although, he added, the Minister of Industries and Commerce (the Hon. D. G. Sullivan) had recently indicated his willingness to discuss any reasonable scheme covering this subject. Mr Smith quoted Mr Justice Edwards in 1920 covering the points raised in which Mr Justice Edwards emphasized that the principle, underlying the fixing of costs must take into account replacements. Mr Smith said unless merchants were allowed reasonable freedom in fixing prices they would hesitate to invest capital in establishing and stocking businesses. The conference carried a remit to the effect that, having regard to the possibility of increased hospital rates being caused by the operation of the Social Security Act, any extra charges in this connection should be debited against the Social Security scheme.

OFFICERS ELECTED AT CONFERENCE ASSOCIATED CHAMBERS OF COMMERCE (United Press Association) WELLINGTON, November 16. At the concluding session today the conference of the Associated Chambers of Commerce of New Zealand elected Mr W. S, Mac Gibbon (Canterbury) as president and Mr G. Fraser (Taranaki) as vice-president and decided that the next annual conference should be held at New Plymouth. Following is the personnel of the new executive:— SOUTH ISLAND.—Messrs W. S. Mac Gibbon (Canterbury), E. E. Mair (Canterbury), C. L. Calvert (Dunedin), C. B. Tapley (Invercargill), C. B. Marshall (South Canterbury). WELLINGTON.—Captain S. Holm, Messrs A. R. Hislop, M. G, C. McCaul, R. H. Nimmo, Stronach Paterson, P. E. Pattrick and A. L, Wall. NORTH ISLAND.—Messrs A. Ely (Auckland), A, M, Seaman (Auckland), G. Fraser (New Plymouth) and D. G, O’Toole (Wanganui). The following motion was carried by the conference: "That having regard to the considerable and increasing hospital, medical and denial costs and to the need for minimizing the causes of ill-health, the Government be asked to set up a competent tribunal to investigate and advise upon the suitable selection and preparation of soil, paying due regard to obtaining the re-

quisite mineral content and also upon food values, water supplies, general living conditions and other factors materially affecting the general standard of health.”